1. Legal form of business in Belarus
For foreign investors in Belarus, there are several legal forms of operating a business. The most popular are the limited liability company (LLC) and the open joint stock company (OCS). The LLC is the preferred option as it is easy to register and offers limited liability for the owners.
The LLC requires a minimum share capital (as little as 1 Belarusian rouble, which is equivalent to approximately 0.5 euro). In addition, it allows foreign investors to own 100% of the company's shares. This form is suitable for most small and medium-sized companies.
On the other hand, the SAO is more suitable for larger projects that need to raise investment through the issuance of shares, although its registration is more complex and requires a larger share capital.
2. Tax aspects of doing business in Belarus
Belarus offers attractive tax conditions. Small companies with an annual turnover of up to 200,000 Belarusian roubles (around 100,000 euros) can benefit from a simplified taxation regime, paying only 5% tax on profits.
In addition, startups and innovative companies can be granted tax exemptions for up to 7 years, during which time the companies are exempt from paying taxes. There are also additional incentives such as tax breaks and subsidies for those investing in specific sectors (IT, agriculture, etc.).
For foreign investors, there are also additional incentives such as tax breaks and subsidies if they invest in specific economic sectors, such as IT, agriculture, etc.
3. Labour Legislation and Protection of Investors' Rights
Labour legislation in Belarus is geared towards protecting the rights of employers. Employers must sign labour contracts that clearly specify working conditions and wages, and comply with mandatory social insurance contributions and other labour taxes, which vary by sector. On the other hand, Belarusian law provides clear guarantees for foreign investors, protecting them against nationalisation and forced expropriation without compensation. Moreover, the country supports these rights through international agreements, which strengthens investor confidence.
4. Investment incentives and financial support
Belarus offers a number of incentives for investors. For example, tax exemptions of up to 7 years are offered for new businesses or innovative companies, which makes the Belarusian market particularly attractive for long-term investments. The country also has special economic zones where additional tax and customs incentives are provided for export-oriented companies.
5. Banking and financial system
The banking system in Belarus is well developed and meets international standards. Both public and private banks operate in the country, offering a wide range of financial services for businesses and entrepreneurs. In addition, payment systems using bank cards and high-speed internet-banking operate in Belarus, facilitating transactions for both customers and foreigners. Belarus continues to improve its financial infrastructure and to promote the development of new solutions for small and medium-sized enterprises, with a special emphasis on innovative financial technologies (fintech), thus opening up new opportunities for international investors.
Conclusion
Operating a business in Belarus presents numerous opportunities for foreign investors. The country has a tax system, support for startups and a legal environment that facilitates business creation. Despite some peculiarities, such as the choice of legal form and compliance with labour regulations, Belarus is a stable and growing economy with competitive conditions for doing business. Interested entrepreneurs can take advantage of tax incentives, including exemption for up to 7 years, which makes the Belarusian market a very attractive option for long-term investments. It is essential to consider all legal and tax features and consult with local specialists to optimise risks. Overall, Belarus has established itself as a hub for startups and foreign investments, offering all the necessary tools to operate a successful business.
