How To Start A Business In Belarus

One of Europe’s best-kept secrets is the country of Belarus. Located between Poland, Russia and the Baltic States, it is a unique travel destination for those who want an experience off the beaten path. Tourists visit to see its towering medieval castles nestled among lush forests and national parks.

But beyond a tourist destination, Belarus is gaining traction as a startup location for entrepreneurs and foreign investors. Not only does it serve as a link between Eastern and Western Europe, it also has a growing IT sector. The creation of Hi-Tech Park (HTP), a special economic zone, has become a tax haven for those in IT and software, cementing its position as a tech hub.

Why Is Belarus A Good Place For Startups?

According to StartupBlink, Belarus currently ranks 21st in Eastern Europe as a startup destination. Let’s take a look at some of the reasons why Belarus has seen such an increase in startups in the last two decades or so.

Support for tech sector: The country heavily pushes the tech industry with HTP and other zones providing tax incentives and co-working spaces for founders.

Affordable living: Most of the other European capitals are more costly to live in compared to Belarus, and budgets here can be stretched a lot further than other areas.

EAEU access: Businesses who are based in Belarus can trade freely without tariffs with Armenia, Russia and Kazakhstan.

Skilled workers: Belarus produces a steady stream of experienced developers and engineers who are cheaper to employ compared to salaries in the West.

Industries With High-Growth Potential In Belarus

Belarus may not necessarily be the first place that comes to mind when starting a new business, but these industries are thriving. Focusing on one of these could greatly improve your chances of success as they already have existing resources and infrastructure to make use of.

IT and tech: Innovations in AI, blockchain, fintech and Software-as-a-Service (SaaS) are continuing to grow especially with the help of HTP.

Renewable energy: More startups are emerging that focus on solar and wind energy for sustainability.

Manufacturing: Belarus has long been a producer of components for cars and robotics.

Agrotech: There are plenty of opportunities to adapt traditional farming methods to make them more efficient and modern.

Navigating The Tax System

Belarus has two tax structures for businesses. The first is their general system where the corporate income tax is 18% and Value Added Tax (VAT) is 20%. Residents of the country are subject to 13% personal income tax while non-residents pay 30%.

The second system is the Hi-Tech Park regime focusing on IT companies which includes software development as well as research and development. Here, there is no corporate income tax or VAT on exported items with only 5% personal income tax. Companies operating under this system do not need to pay for real estate or land taxes either.

Visa And Residency Requirements For Foreigners

For short-term entry, most countries including the EU and US can enter Belarus without a visa for up to 30 days.

If you intend to stay longer for business-related activities, you can apply for a Type D visa that is valid for 90 days up to a year. To be eligible for this, applicants will need to show proof of their accommodation, company registration and source of income.

A residence permit is also available for company founders, investors and employees. This is valid for 5 years and is renewed yearly, with permanent residency or citizenship becoming available after 7 years.

How To Start A Business In Belarus

If you have decided to move forward with starting a business in Belarus, here is a step-by-step guide on how you can do so successfully.

Select A Legal Entity

The first step is to decide on your business structure. In Belarus, there are three common types.

Limited Liability Company (LLC): This is a popular option and requires one or more founder.

Private Unitary Enterprise (UE): Similar to a sole trader, this is owned by one person.

Joint-Stock Company (JSC): This option is ideal for big investments or public offerings.

Reserve A Business Name

Once you have decided on your desired business name, you can check the availability of it with the Unified State Register of Legal Entities.

Compile Charter Documents

The next step is to prepare all of your charter documents which will include a company charter, founder details and your decision of establishment. These will all need to be notarised and translated into Belarusian or Russian to meet the requirements.

Register The Company

You can then register the business with the Unified State Register. This process can typically take 1-2 business days and thereafter you can open a business bank account to deposit the minimum share capital if applicable.

Should You Start A Business In Belarus?

While Belarus may not be your typical startup destination, it can certainly be a rewarding venture. For the right entrepreneur with the right idea in mind, especially in tech, software or manufacturing, it holds great promise.

Specifically for those startups who want a base with access to Eastern Europe and EAEU, Belarus is a good starting point with an affordable cost of living and qualified workers.

Good luck!