Procedure of share capital formation

At least 50% of share capital stated in the constituent documents of a commercial organization with foreign investments (except for a commercial organization with foreign investments in the form of an open joint-stock company) shall be formed within one year from the date of state registration by means of each founder (participant) contributing at least 50% of their respective interests. The remaining balance must be settled within a period of two years following state registration (the Ministry for Foreign Affairs of the Republic of Belarus has the right, in exceptional cases, to extend the period of charter capital formation by commercial organizations with foreign investments).

Share capital stated in the constituent documents of a commercial organization with foreign investment in the form of an open joint stock company shall be formed in full prior to state registration of such organization.

On establishment of a bank the minimal part of its share capital should be formed in full (by means of its founders' funds only) prior to state registration.

The charter fund of the insurer should be formed in full by its founders before the date of state registration. Payment by foreign investors of their shares (interests) in the charter fund of the insurer and insurance broker is effected by means of money only.

If by the end of the second and each of the subsequent financial year the value of net assets of a commercial organization with foreign investment would be less than the charter fund, such an organization is obliged to announce and register the reduction of its charter fund. In case the value of these assets would be less than the minimum part of the charter fund, such an organization is subject to liquidation in accordance with the established procedure.

A commercial organization with foreign investment (except for a commercial organization with foreign investment in the form of a joint-stock company) shall submit to the registration authority, by which it was registered, the documentary proof of charter capital formation within the prescribed limits not later than 30 days from the date of the respective period end. The audit opinion is documentary proof of the fact of charter capital formation.

Once the commercial organization with foreign investment has presented the documentary proof of share capital formation, the registration authority shall issue certificate of share capital formation within 10 days of the receipt of the said documentary proof.

Share capital of commercial organizations with foreign investment shall be stated in US dollars. In the event when the commercial organization with foreign investment takes the form of a joint stock company or includes assets of the Republic of Belarus in its charter capital, the charter capital shall be also stated in the official currency of the Republic of Belarus.

Founders (participants) of the commercial organization with foreign investment are entitled to make both monetary and in kind contributions to share capital of such organization.