Belarus is a developing country, ranking 53rd in the Human Development Index. It has been a member of the United Nations since its founding and has joined the CIS, the CSTO, the EAEU, the OSCE, and the Non-Aligned Movement. It has shown no aspirations of joining the European Union but nevertheless maintains a bilateral relationship with the bloc and also participates in two EU projects, the Baku Initiative and the Eastern Partnership. Belarus suspended its participation in the latter on 28 June 2021, after the EU imposed more sanctions against the country.
Belarus has trade relations with over 180 countries. The main trading partners are Russia, which accounts for about 45% of Belarusian exports and 55% of imports, and the EU countries, which account for 25% of exports and 20% of imports.
Economy in Belarus is formed on the basis of a socially oriented market model. Centralized distribution and planning, except for national measures, is absent. The country has a developed power industry, engineering industry, agriculture, chemical and timber industry, construction and manufacture of building materials, mining industry.
The majority of the Belarusian economy is still controlled by the state; 39.3% of Belarusians are employed by state-controlled companies, 57.3% are employed by private Belarusian companies (of which 6.7% are partially foreign-owned) and 3.4% are employed by foreign companies. The country is reliant on imports such as oil and natural gas from Russia. Belarus’ biggest exports are software, heavy machinery, agricultural products, potash fertilizers, and energy products. Some of Belarus’ natural resources include potassium, peat, granite, dolomite (limestone), marl, chalk, sand, gravel, and clay.
Currently Russia is Belarus’ main trading partner accounting for almost half of Belarus’ total trade. Nearly a third of Belarus’ total trade was conducted with the European Union, making it the next largest trading partner until Belarus lost its EU Generalized System of Preferences status on 21 June 2007, as a result of which tariff rates increased to the levels of most-favoured nation status.
The Belarusian financial services market is dominated by banks. Belarus has a two-tier banking system consisting of:
• the National Bank; and
• banks and non-banking financial institutions (collectively “banks”).
The National Bank is the central bank of Belarus and, at the same time, a public authority. It acts as the banking supervision agency and as the main regulator of banks.
Belarus has a two-tier taxation system which includes state-wide and local taxes and duties. State-wide taxes are levied throughout the territory of Belarus, while regional and local taxes are levied on the taxpayers registered, operating or holding property within the territory of the particular region.
Belarus’ advantageous location, developed transportation, logistics, and manufacturing systems, and membership in the Eurasian Economic Union (EAEU) create unique opportunities for companies willing to develop business relationships in the Eurasian region.
The country is improving administrative procedures, taxation, pricing, licensing, and protection of investor’s rights, and is the world leader in legislation improvement, according to World Bank. Belarus is pursuing step-by-step privatization and has created a number ofmarket entry and localization related incentives, including preferential regimes for investors.
There are no specific requirements for foreigners wishing to establish a business in Belarus. Investors, whether Belarusian or foreign, benefit from equal legal treatment and have the same right to conduct business operations in Belarus by incorporating separate legal entities. The procedure requires the fulfillment of certain legal formalities (registration in The Unified State Register of Legal entities and individual entrepreneurs.)
Companies are required to have their own name, authorized fund (the formation of which, unless otherwise is provided by the legislation, is allowed for one year from the date of the state registration of a legal entity, as well as the minimal amount of which is established for several forms of entities by law), management, registered offices and bank accounts.
Companies established in Belarus are subject to the Belarusian law, but agreements concluded by Belarusian companies can be governed by the law chosen by the parties.
Currently regulation of intellectual property rights in Belarus is predominantly governed by the Civil Code, the Law on Copyright and Related Rights and the Law on Industrial Patents, Utility Models and Designs. The Civil Code provides for several different forms of intellectual property. These are divided into two groups:
• Copyright and Related Rights;
• Industrial Property Rights.
The Belarusian legal system is based on the civil law (continental) system. A substantial amount of Belarusian legislation regarding business activities is codified, i.e. consists of codes of law (the Civil Code, the Tax Code, the Banking Code, the Land Code, etc.). Other legislation includes laws, Presidential decrees and edicts, and governmental resolutions.
Presidential decrees and edicts play a significant role as in most cases they are superior and may derogate from ordinary laws.
The judiciary consists of courts with general trial jurisdiction and specialized courts such as the Constitutional Court (which deals with specific issues related to constitutional law) and economic courts, which deal with issues related to business law. The judges of the Supreme Court are appointed by the President subject to the approval of the Council of the Republic. The Constitutional Court has twelve judges, six appointed by the President and six elected by the Council of the Republic. Judges at all other courts in Belarus are appointed by the President. For cases related to business activities, the highest court of appeal is the Supreme Court.
Our law firm VLO provides legal services for corporate and private clients in Belarus. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Belarus has trade relations with over 180 countries. The main trading partners are Russia, which accounts for about 45% of Belarusian exports and 55% of imports, and the EU countries, which account for 25% of exports and 20% of imports.
Economy in Belarus is formed on the basis of a socially oriented market model. Centralized distribution and planning, except for national measures, is absent. The country has a developed power industry, engineering industry, agriculture, chemical and timber industry, construction and manufacture of building materials, mining industry.
The majority of the Belarusian economy is still controlled by the state; 39.3% of Belarusians are employed by state-controlled companies, 57.3% are employed by private Belarusian companies (of which 6.7% are partially foreign-owned) and 3.4% are employed by foreign companies. The country is reliant on imports such as oil and natural gas from Russia. Belarus’ biggest exports are software, heavy machinery, agricultural products, potash fertilizers, and energy products. Some of Belarus’ natural resources include potassium, peat, granite, dolomite (limestone), marl, chalk, sand, gravel, and clay.
Currently Russia is Belarus’ main trading partner accounting for almost half of Belarus’ total trade. Nearly a third of Belarus’ total trade was conducted with the European Union, making it the next largest trading partner until Belarus lost its EU Generalized System of Preferences status on 21 June 2007, as a result of which tariff rates increased to the levels of most-favoured nation status.
The Belarusian financial services market is dominated by banks. Belarus has a two-tier banking system consisting of:
• the National Bank; and
• banks and non-banking financial institutions (collectively “banks”).
The National Bank is the central bank of Belarus and, at the same time, a public authority. It acts as the banking supervision agency and as the main regulator of banks.
Belarus has a two-tier taxation system which includes state-wide and local taxes and duties. State-wide taxes are levied throughout the territory of Belarus, while regional and local taxes are levied on the taxpayers registered, operating or holding property within the territory of the particular region.
Belarus’ advantageous location, developed transportation, logistics, and manufacturing systems, and membership in the Eurasian Economic Union (EAEU) create unique opportunities for companies willing to develop business relationships in the Eurasian region.
The country is improving administrative procedures, taxation, pricing, licensing, and protection of investor’s rights, and is the world leader in legislation improvement, according to World Bank. Belarus is pursuing step-by-step privatization and has created a number ofmarket entry and localization related incentives, including preferential regimes for investors.
There are no specific requirements for foreigners wishing to establish a business in Belarus. Investors, whether Belarusian or foreign, benefit from equal legal treatment and have the same right to conduct business operations in Belarus by incorporating separate legal entities. The procedure requires the fulfillment of certain legal formalities (registration in The Unified State Register of Legal entities and individual entrepreneurs.)
Companies are required to have their own name, authorized fund (the formation of which, unless otherwise is provided by the legislation, is allowed for one year from the date of the state registration of a legal entity, as well as the minimal amount of which is established for several forms of entities by law), management, registered offices and bank accounts.
Companies established in Belarus are subject to the Belarusian law, but agreements concluded by Belarusian companies can be governed by the law chosen by the parties.
Currently regulation of intellectual property rights in Belarus is predominantly governed by the Civil Code, the Law on Copyright and Related Rights and the Law on Industrial Patents, Utility Models and Designs. The Civil Code provides for several different forms of intellectual property. These are divided into two groups:
• Copyright and Related Rights;
• Industrial Property Rights.
The Belarusian legal system is based on the civil law (continental) system. A substantial amount of Belarusian legislation regarding business activities is codified, i.e. consists of codes of law (the Civil Code, the Tax Code, the Banking Code, the Land Code, etc.). Other legislation includes laws, Presidential decrees and edicts, and governmental resolutions.
Presidential decrees and edicts play a significant role as in most cases they are superior and may derogate from ordinary laws.
The judiciary consists of courts with general trial jurisdiction and specialized courts such as the Constitutional Court (which deals with specific issues related to constitutional law) and economic courts, which deal with issues related to business law. The judges of the Supreme Court are appointed by the President subject to the approval of the Council of the Republic. The Constitutional Court has twelve judges, six appointed by the President and six elected by the Council of the Republic. Judges at all other courts in Belarus are appointed by the President. For cases related to business activities, the highest court of appeal is the Supreme Court.
Our law firm VLO provides legal services for corporate and private clients in Belarus. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Belarus