Registration of companies and representative offices

The right to manage a company with foreign participants

A legal entity with foreign participants can be headed by a founder or any third party. Head of the organization can be a foreign person as well. Requirements for registration vary depending on the country of citizenship.

The following options are possible:

1. Citizenship in the EAEU countries implies activity on the territory of Belarus without obtaining a special work permit.
2. Citizenship in a country that is not part of the EAEU implies obtaining a special permit to work in the Republic of Belarus.

If it is necessary to obtain a special permit, should be borne in mind that the application for obtaining a permit can be considered for at least 15 days. If the future manager is not the founder of the organization, then the consideration of the application may take up to 45 days.

Taxes for legal entities with foreign participation

Briefly tell us about this nuance is quite difficult. If we consider the basic taxation, it makes sense to describe the complexes of taxes: STS and GTS, as well as taxes which are deductible from employees' salaries. Payments that form 90% of the tax burden for the majority of businesses in Belarus will be considered.

In case of choosing simplified taxation, the payer is obliged to pay tax in the amount of 5% of gross receipts without VAT or 3% with VAT. The value added tax value is 20%.

If the general taxation system is chosen, income tax in the amount of 18% is charged from the proceeds. At the same time, additional taxes need to be paid that do not create a burden on the business.

Features of the simplified tax system:

1. Some types of activities do not fall under the possibility of using the STS.
2. Simplified taxation provides for restrictions in the field of gross revenue and the number of employees. The specified parameters are changed. At the moment, the revenue limit is 600,000 US dollars, while you can hire up to 50 employees.

The predominant amount of the tax burden is payroll taxes. The enterprise collects from each employee and transfers to the budget 13% of wages in the form of income tax and 1% of salaries as a contribution to the Social Security Fund. The employer pays pension insurance in the amount of 34% of the salary and 0.2% of the salary in the form of accident insurance.

Benefits for foreign investors in Belarus.

At the moment, the establishment of a Belarusian company by a foreign person is not a basis for granting benefits. At the same time, foreigners can enjoy standard benefits.

These types of benefits are divided into territorial regimes and regimes by type of activity. The most important regimes are:

1. Free economic zones in all regions, including Minsk.
2. Industrial Park «Great Stone».
3. Rural areas and small settlements.

A nuance in the regime of benefits for rural areas and small settlements is their provision to producers of goods and services on the basis of their location. At the same time, other territorial regimes provide for the observance of additional formal procedures.

The main category of benefits for enterprises in IT sector is the Hi-Tech Park. HTP residents can be representatives of the custom or grocery sector. Benefits are provided, among other things, to mining and cryptocurrency trading companies. The HTP has both dedicated premises for carrying out activities, and provides the opportunity to carry out activities outside the physical boundaries of the HTP.

You can get detailed information about the benefits for each regime by reading the relevant publications on our website. It is worth noting that most of the benefit regimes allow you to save 50% or more on income tax, VAT and pension insurance tax.

On an individual basis, foreigners can receive benefits after signing an investment agreement with the Republic of Belarus. Basically, such cooperation attracts investors who plan to invest a significant amount of money, but they need to provide a land plot for doing business.