Investment in Belarus. General terms and provisions

Relations regarding investment activity in the territory of the Republic of Belarus is regulated by the Investment Code, regulatory legal acts of the President of the Republic of Belarus, the Civil Code and other laws of the Republic of Belarus, including the international agreements to which the Republic of Belarus is signatory, and investment agreements signed by the Republic of Belarus.

Investment means any assets, including cash, securities, equipment and intellectual property owned by the investor based on proprietary rights or other substantive law, and the property rights which the investor invests in investees to generate income (revenue), and/or achieve other material result.

The following entities are deemed foreign investors in the Republic of Belarus: foreign states and their administrative and territorial entities represented by authorized bodies; international organizations; foreign legal entities; foreign organizations, which are not legal entities, set up in accordance with the legislation of foreign states, foreign citizens; individuals (citizens of the Republic of Belarus and stateless citizens) permanently residing outside the Republic of Belarus.

Specific procedures regulating the activities of foreign investors are governed by the Investment Code, other legislative acts of the Republic of Belarus, including international treaties to which the Republic of Belarus is signatory.

The following are deemed investees: real estate, including assets of an enterprise; securities; intellectual property.

Legislative acts of the Republic of Belarus specify the list of entities in respect of which it is prohibited to carry out investment activity by all investors, except for the Republic of Belarus.

Investment activities in the Republic of Belarus may have the following forms: establishment of a legal entity; acquisition of property or property rights, e.g.: interest in the charter capital of a legal entity, including increase of the charter capital of a legal entity; real estate, securities, intellectual property rights, concessions, equipment, other fixed assets.

Unless otherwise specified by legislative acts of the Republic of Belarus, the sources of investments may include:
- Investors' own funds, including amortization funds, profit after taxation and other obligatory payments, including funds received from sale of shares in the charter capital of an entity;
- Borrowed and attracted funds, including loans of banks and non-bank credit and financial organizations, loans of founders (participants) and other legal entities and individuals, bonded loans.

 

Foreign investors are entitled to establish in the territory of the Republic of Belarus Belarusian legal entities without restrictions on the amount of foreign investment or the organizational and legal form, as well as to set up their subsidiaries and representative offices, in accordance with the legislation of Belarus, including the international agreements to which the Republic of Belarus is a signatory.

 

Legal entities with the share of foreign investments in their charter capital equivalent to at least US$20,000 and with a main objective of profit (earnings) generation and/or distribution of the earned profit among the participants shall be recognized in the territory of the Republic of Belarus as commercial organizations with foreign investments. Legal entities shall acquire the status of commercial organizations with foreign investments from the date of the state registration of commercial organizations with foreign investments.

The minimum charter capital of other organizations and the procedure for their establishment are specified by the legislation of the Republic of Belarus. Such organizations shall not be eligible for the exemptions established by the Innovation Code and the Belarusian legislation for commercial organizations with foreign investments.

Commercial organizations with foreign investments as well as foreign investors shall pay taxes, dues (duties) and enjoy tax and customs exemptions in accordance with the tax and customs legislation of the Republic of Belarus unless otherwise specified by the international agreements of the Republic of Belarus.

The legal regime governing foreign investment within the Republic of Belarus and the business conditions for foreign investors and legal entities established with their participation shall not be less favorable than the equivalent regime governing property and property rights and investment conditions for Belarusian legal entities and individuals, with the exception of the instances established by the Investment Code.