How to Set Up a Sole Proprietorship in Belarus: A Complete Guide

Belarus is a landlocked nation in Eastern Europe with easy access to Moscow, Poland, and Lithuania markets. Officially known as the Republic of Belarus, the government has clocked an exceptional literacy rate of 99.87% against an average population of around 9.02 million. Furthermore, the country is surrounded by significant manufacturing countries. It also allows Belarusian companies to procure raw materials at an affordable price while shelling out minimal delivery fees.

Belarus is a developing country that has introduced several business-friendly laws to enhance its value proposition alongside benefits like trade agreements, affordable talent, and more. As a reward, Belarus has quickly climbed the ranks in ease of doing business by acquiring the 49th rank.

Boasting an abundance of learned and experienced professionals in every sector, along with trade agreements and favorable business environments, Belarus has been on many business owners’ radars. Opening a sole proprietorship in Belarus is one of the simplest and fastest ways to leverage the mentioned advantages. 

While opening a sole proprietorship in Belarus, one must know the business setup process, required documentation, necessary taxation, and more. All such information can be found below. 

Who can be a Sole Proprietor in Belarus?

Any citizen can incorporate a sole proprietorship in Belarus. However, foreigners must have a work or resident visa to incorporate a sole proprietorship in Belarus. Non-residents can also act as representatives of a legal entity while incorporating the said business type. 

Belarus provides flexibility and options to residents and non-residents with multiple choices for specific needs. The choice of progression, such as the use of a legal entity or the service of a work permit, solely depends on the applicant. 

Benefits of Sole Proprietorship in Belarus

Belarus is one of the rising talents in terms of business opportunities with the inclusion of new business-friendly reforms. A strategic geographical position with some heavy-weight manufacturing trade partners, coupled with high literacy, is transforming Belarus into a business haven.
Companies setting up a sole proprietorship in Belarus can enjoy the following benefits offered by the country:

• Skilled workforce and significant industrial development: Belarus has an extraordinary literacy rate of 99.87%, with around 50% of workers receiving higher education. For a country with about 9.2 million, employers are bound to enjoy an endless abundance of skilled and learned applicants in all job requirements. The favorable industrial growth adds icing to the cake since 1/3rd of the country’s GDP is derived from this sector.
• Less paperwork and simple tax structure: Establishing a sole proprietorship in Belarus follows a simple three-step process. One needs to get a business name approval certificate, register with a state for a business address, and complete the tax registration with the national tax authorities. There are three applicable taxes for every sole proprietorship in Belarus, and tax filing is considered a breeze. As a sole proprietor, one must file for only three taxes: VAT, profit tax, and income tax. 

• Geographical location and trade agreements: Belarus boasts a strategic position between the major trading route that connects Europe and the CIS. In other words, by setting up a sole proprietorship in Belarus, the export and import of materials become quite affordable from specific locations. Belarus has trade partnerships with major manufacturing countries like Russia, Ukraine, China, Germany, Italy, and more. Businesses located in Belarus have access to more suppliers than their competitors in other countries. 
• Favor for businesses and investment: The Belarusian government has introduced many rules and regulations to attract investors and business-minded individuals worldwide. The addition of several free economic zones, special tax incentives, and a collaboration with China to create the China-Belarus Industrial Park Great Stone are some significant strides. A rule passed on 24th January 2014 named “On Investments” protects foreign investors by safeguarding their private matters through non-interference. 

Documents Required for Registering Your Business in Belarus

Opening a sole proprietorship in Belarus is pretty simple, as minimal documentation is required. The documents needed before setting up a sole proprietorship in Belarus are listed below.

• An application is to be filled out by the business owner. 
• Payment confirmation receipt of state duty 
• Two copies of the Articles of Association
• A digital version of the submitted Articles of Association. It must be submitted through a CD. 
• Non-residents must submit their resident or work visa before they incorporate a sole proprietorship in Belarus. 

Other Criteria for Registering a Sole Proprietorship in Belarus

Some other essential requirements for establishing a sole proprietorship in Belarus have been elaborated below. 

• Non-resident beneficiaries or owners must translate a copy of their passports into Russian or Belarusian through a certified expert and submit them with the other mentioned documents. It is otherwise termed a notarised passport copy. 
• Individuals planning to open a sole proprietorship in Belarus must also submit a company feasibility report. This report ideally hints towards how feasible a business model is, with the available resources, while also forecasting its growth. 

How to Register a Sole Proprietorship Company in Belarus

Registering a sole proprietorship in Belarus is a straightforward procedure. One must follow the steps to complete a business registration with zero hiccups. 

Name approval and registration

• The Unified State Register must approve the determined name of a company of Legal Entities and Individual Entrepreneurs. 
• It is a free process with zero hidden charges. 
• One can use the USR website to check for the business name availability. 
• A business owner can download and fill up the application form. It should be submitted via mail, in-person, or through a postal service. 
• The applicant will receive a certificate approving their request for a particular business name or a rejection notice. 
• Registered state: An applicant must complete the state registration after name approval. It can be done either through an electronic submission or in-person submission.  
• A business owner must apply with the State Registration Authority, along with the Articles of Association, business name approval certificate, and all the mentioned documents, such as the notarized passport copy. 
• In the case of a legal entity, the acting person should present a letter that proves their authority. It is commonly referred to as the letter of attorney. 
• All the registration documents must be submitted to the Minsk City Executive Committee. 
• The whole process usually takes around a week or two to finish. 

Tax registration

• Every sole proprietorship Belarusian tax must have a VAT registration number.  
• Once the processes are completed, the applicant can apply for a VAT registration number and the required taxation procedure through the Belarusian Tax Authorities.

Bank accounts

• The business owner must open a bank account with a registered Belarusian bank. 
• All the transactions must be done through the registered bank account. 
• The currency must be in Belarusian Rubles (BR) for transactions within Belarus.

How Multiplier Can Help You

Incorporating a sole proprietorship in Belarus is more straightforward than in other countries since the Belarusian government has taken huge strides toward making business favorable. However, the process might still seem daunting with the inclusion of several governing agencies requiring specific documentation. Furthermore, setting up a sole proprietorship in Belarus is just a start, as businesses must set up payroll and corresponding management to ensure its efficacy. 

Multiplier is a SaaS-based one-stop shop for all the payroll and business requirements for brands of every size who want to leverage the benefits of international hiring without the hassle. One-click payment processing and payroll management are two of the many lucrative employers of record (EOR) perks, making Multiplier as lucrative as the advantages of doing business in Belarus.