Landlocked between Latvia, Russia, Poland, Ukraine, and Lithuania, Belarus has a central location in Eastern Europe. The Republic of Belarus is a democratic welfare state divided into seven regions administratively, with Minsk as its capital and largest city.
According to a survey conducted by the World Bank in 2020, Belarus ranked 49th among 190 countries on the Ease of Doing Business list. Primary industries in the country are agriculture and agricultural equipment such as tractors, dump trucks, movers, etc.
The state regime works towards providing an environment conducive to business to locals and foreigners alike. Foreign companies or subsidiary businesses enjoy the same rights and benefits as the locals without discrimination.
The Commercial Law of Belarus permits various forms of business structures, the ones mostly adopted are a) Sole Proprietorship, b) Limited Liability Company and c) Joint Stock Company
Some primary information regarding each of the above-stated forms of businesses is illustrated in the table below:
| S# | Type of Business | Local Name | Min. Req. Paid-up Capital |
| 1. | Limited Liability Company | Obshchestvo s ogranichennoy otvetstvennost’yu (OOO) | €1 |
| 2. | Open Joint Stock Company | OAO | €3,900 (approx.) |
| 3. | Closed Joint Stock Company | ZAO | €900 (approx.) |
Limited Liability Company LLC – OOO
Growing business enterprises prefer this form of business over any other since it does not require large capital and is easy to operate. Owners in an LLC are not personally responsible for losses or debts, LLC itself is recognized as a legal person in the eyes of law. Hence, any losses or debts are the responsibility of the company and not the owners; in an event of loss, the company shall compensate the customers to the extent of assets owned by the company and nothing beyond.
Two or more people can register an LLC with a minimum paid-up capital of €1. The fee to register an LLC in Belarus is approximately €40. The process starts with the submission of registration forms along with prescribed documents and the state fee mentioned above. Prior to submission, the company name must be selected and articles of association must also be notarized.
Open Public Limited Company – OAO
A PLC is one where the shares of the company can be bought by the public. The shares are listed on a stock exchange where they can be traded openly. The minimum required paid-up capital for an open PLC in Belarus is €3,900. A PLC is preferred by companies in need of large capital in a short time. The company issues shares by pledging a paid-up capital with a commercial bank.
The cost of registration of an OAO including notarization, state and local fees, registration fees, etc. may round up to €300. This cost may change if the process is adopted through a consultancy firm; the firm may charge between €2500-€5000 depending on the case.
Closed Public Limited Company – ZAO
The process for establishing a ZAO is the same as OAO. A ZAO differs in structure from OAO in that the shares of a ZAO company cannot be bought or traded by the public. The shares can only be bought by the owners which shall not exceed 50 in number.
The associated cost of forming a company in Belarus
While a number of steps towards company formation in Belarus come free of charge, there are some state and local fees involved in the process. The application of fees depends on the type of business structure.
The chart below represents charges incurred at each step of the registration process and the estimated time required – The chart also reflects the expenses a business operation incurs in day-to-day activity.
| S# | Process | Explanation | Fee | Duration/Qty |
| 1. | Business registration with state registry | A necessary step to register a business with the state registry. A duly filled form related to a specific form of company along with the required documents and company particulars need to be submitted with the authority. The form contains bio data of the owners, registered office address, business activity, source of funding, etc. | €9 | 1 week |
| 2. | Company Seal | A company seal is not a compulsion since 2018, however, many LLCs prefer having a seal to replace notarization in some cases. Company seal also lends authenticity to company documents such as letters, notifications, memos which are used in legal and government correspondence. | €8-€15 | 1 working day |
| 3. | Commercial electricity connection | Connection agreement between the company and BelEnergo (the national electricity distributor). Only applicable in case a dedicated electricity connection is required by the company such as manufacturers, farming, etc. | €3,886 | 90 days |
| 4. | Daily wages | The minimum daily wages in Belarus were revised in January 2022. As per the new schedule, the minimum daily wages are determined by the category of worker, nature of work, and working hours. | €173 | Per month |
| 5. | Electricity charges | Commercial unit charges in Belarus are different for residential/household users. | €0.11 | Per unit consumed |
| 6. | Translation charges | The official language of Belarus is East Slavic. All documents submitted must be in the official language hence translation will be required if the documents are in any other language | €0.047 | 1 to 3 working days |
| 7. | Notarization | All documents supposed to be submitted must be verified and authenticated by a notary. While the exact charges may depend on the amount, type, and level of notarization, a rough estimate is given here. | €95 | 10 documents |
| 8. | Office rent | Rental estimates in the capital city of Minsk vary between areas. Central business districts have pricier places than far-away areas. | €8-12 | Per sq.meter/per month |
| 9. | Internet charges | Internet is mostly available in urban areas of Belarus only. Most of the users are located in Minsk. An 8Mbps connection is usually the maximum speed offered. | €10 | Per month |
Advantages of establishing a company in Belarus
Belarus has a central standing among the eastern European countries, both geographically and from a business perspective. The government of Belarus offers various facilities and trade incentives that attract international businesses to operate from the country. The free economic zones (FEZ – 6 in total) are located in Minsk, Gomel, Vitebsk, Grodno, Brest, and Mogilev; businesses must invest a minimum of €1million to register their company in a FEZ.
The most attractive benefits of FEZ are:
- No Tax on profits (on goods and services for 05 years)
- 50% discount on substitution goods (goods produced in Belarus)
- No tax on property (rented or purchased) within FEZ
- Exemption from contributing to the national agricultural fund
- Tax-free vehicles (on purchase only)
- No tax on imported raw materials or equipment
- State guarantee that the legislation governing companies will remain unchanged for seven years
Furthermore, Belarus in partnership with China has established a special economic zone (SEZ) named the China-Belarus industrial park Great Stone or CBIP. The minimum investment required to register a company in SEZ is €5 million or in the case of an R&D firm €1 million.
One of the clauses in the CBIP agreement, known as the “grandfather clause” stipulates that the terms and arrangements of business currently prevailing, will not be disturbed for the upcoming 10 years.
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