Set up a Company in Belarus
Updated on Monday 07th May 2018
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The most important incentive for foreign investors is the welcoming environment that Belarus offers. Its economy offers low taxes and guaranteed security of funds and information. According to Law in Belarus, a company can be set up by individuals or legal entities who comply with the law. There are a number of procedures that entrepreneurs must overcome in order to set up a company in Belarus. However, the whole process is easy to follow and it usually doesn't last longer than 10 days.
Preliminary activities before registering LLC and joint stock companies in Belarus
Before setting up a company in Belarus, the entity must check the uniqueness of the name and must receive a certificate of authenticity from the Ministry of Justice. A bank account must be opened and at least 50% of the share capital must be deposited (if it is required, otherwise the capital is established in the articles of association). Since May 2013 the Regulations on State Registration Entrepreneurs provide that the entire amount of the share capital must be fully deposited within 12 months from the registration date.
The last preliminary step in order to set up a company in Belarus consists of notarizing the Articles of Association.
Registering limited liability and joint stock companies with the State Registry
In order to register with the State Registry company, founders must file an application containing information on the company along with the articles of association, company charter, legal address, object of activity, certificate of name registration and other information on the shareholders. The whole process is supposed to take only five days, according to Decree No. 1 of 16 January, from which the actual registration is finished in one day, and the other four days are used for informing other authorities, such as tax authority and other.
Opening a regular bank account in Belarus
After receiving the registration certificate, the founders may proceed in opening a regular bank account in order to complete transactions related to the business. After opening the bank account, it comes in the bank's duty to submit a formal notice to Social Security, Insurance, and Tax authority, offering information on the account opened for the new company. This is a new ruling set by the Article 2.4 of the Regulation on State Registration of Entrepreneurs.
Obtain a company seal
When all the previous actions needed to set up a company in Belarus were successfully fulfilled, it can be obtained a company seal. The law in Belarus does not oblige the companies to have a company seal, but it becomes mandatory for certifying bank transactions, including for opening a bank account and also for power of attorneys. However, the state bodies and institutes, for example, tax authorities, cannot refuse documents that do not have a company seal.
Setting up a Belarusian company from abroad
The state of Belarus welcomes foreign investment, furthermore guaranteeing the security of funds and information, offering few restrictions for foreigner entrepreneurs. An entrepreneur may set up a company in Belarus, without necessarily having a residence in the country. However, it is important that the company has a registered office. The registration process can be carried out by a representative, but only to the State Registry, as depositing shares into the bank account may only be done with the presence of all shareholders. The foreign company can also open a branch, which will have limited liabilities, as it is considered an extension of its foreign parent company. The capital of this branch is granted by the foreign company and the responsibilities for its actions are taken by it.
How long does it take to establish a company in Belarus?
Most of the procedures are finished in the same day, except registration with the State Registry, which may take up to 5 days to finish. All the steps required to set up a company in Belarus are simple, does not require many complex procedures and are accomplished in approximately ten days, when all the documentation is complete and deposited before the proper authorities.