Starting a Business in Belarus as an Expat: The Complete Guide

Published on April 25, 2026 and written by Cyril Jarnias

Establishing a Business in Belarus from Abroad is not just about filling out a few forms and opening a bank account. It means entering a very specific economic ecosystem: an industrial country, located at the heart of Eastern Europe, a member of the Eurasian Economic Union (EAEU), with powerful special tax regimes (Hi-Tech Park, free economic zones, the China-Belarus Industrial Park “Great Stone”) and a business law in full evolution.

Understanding the Playing Field: Economic and Fiscal Environment

Belarus has approximately 9.5 million inhabitants, a dense industrial fabric (machinery, chemicals, energy, agri-food) and an IT sector that has become the country’s showcase, especially in Minsk. Operating costs (salaries, office rent, services) remain significantly lower than in Western Europe, attracting foreign development and outsourcing centers.

The country ranked 49th out of 190 in the World Bank’s Doing Business 2020 report, and 30th for ease of starting a business. Several reforms have simplified procedures: removal of certain registration obligations, shortened deadlines, partial digitalization.

Overview of Key Taxes for Companies

The Belarusian tax system is based on several components: profit tax, VAT, local taxes, social contributions, with variations depending on the chosen regime (general or simplified) and any preferential statuses.

Here is a summary of the main rates applicable under the general regime:

In addition to these taxes, there are social contributions: 34% of gross salary paid by the employer (pension, social insurance) plus approximately 1% for accident insurance via the public insurer Belgosstrakh, and 1% withheld from the employee’s salary for their pension contribution.

Double Taxation and Tax Treaties

Belarus mainly applies the foreign tax credit method to avoid double taxation: tax paid abroad is deducted from the Belarusian tax due, upon presentation of proof. Treaties prevail over domestic law, unless national law is more favorable (outside EAEU law).

However, the environment has been profoundly modified:

– unilateral suspension of key provisions (dividends, interest, capital gains) with 27 countries considered “unfriendly”, reverting to domestic rates (e.g., 25% on dividends to certain states);

– outright terminations effective from 2026 with some Baltic neighbors (Lithuania, Estonia);

– mutual suspensions with a few states (France, Czech Republic, United States, United Kingdom for certain periods).

For an expatriate, this requires mapping financial flows (dividends, intra-group interest, licenses, management fees) and, if necessary, interposing an intermediate jurisdiction that has a treaty in force and not suspended.

Choosing the Right Structure: Subsidiary, Branch, Representative Office

The reform of the Civil Code effective November 19, 2024 changed the landscape: branches of foreign companies, previously impossible, are now permitted. The expatriate entrepreneur therefore has several options.

Limited Liability Company (LLC / OOO): The Standard Option

The leading form for a foreign investor remains the Limited Liability Company (ООО):

– autonomous legal entity, distinct from its shareholders;

– limited liability to the amount of contributions;

– from 1 to 50 shareholders, individuals or legal entities (foreign or local);

– no legal minimum charter capital;

– contributions in cash or in kind (goods, equipment, rights) are possible.

Certain constraints exist: a sole shareholder cannot itself be a single-shareholder company, and a foreign founder must not be subject to restrictions (conviction for economic crimes in Belarus, tax debts, involvement in a recently bankrupt company, inclusion on lists related to terrorism, etc.).

For an expatriate, the ООО presents several advantages: risk isolation, access to all tax regimes (general, simplified), eligibility for preferential zones (HTP, FEZ, Great Stone, technology parks), possibility to obtain a license for regulated activities.

Joint-Stock Company (JSC): Open or Closed

For larger-scale projects seeking a broader investor base, the Joint-Stock Company (JSC) can be relevant.

JSCs can issue ordinary shares and preference shares, the latter not exceeding 25% of the charter capital. Dividends and capital gains follow general rules, with, for substantial long-term participations, rates of 0%, 6% or 12% for the resident company depending on distribution history.

Private Unitary Enterprise (PUE)

A more atypical form for an expatriate, the Private Unitary Enterprise is owned by a single founder, who remains the direct owner of the assets. The enterprise has no charter capital in the classic sense, cannot hold property in co-ownership, and the transfer of real estate requires the founder’s approval.

This vehicle can appeal to a solo entrepreneur who wants to retain total control over assets, but the absence of charter capital and the particular legal status are less transparent for foreign investors or partners.

Representation or Light Presence: Representative Office

A representative office is an extension of a foreign company. It does not have legal personality, cannot engage in direct commercial activity, and serves essentially to:

– represent the parent company;

– conduct marketing, market research;

– organize client meetings, provide technical support;

– prepare for the conclusion of contracts.

Since the renovation of the Civil Code, representative offices that conduct taxable activity as a permanent establishment must be liquidated or converted before mid-May 2025. Permits are issued for three years, renewable.

The Newcomer: Foreign Company Branch

Thanks to the revision of the Civil Code, a foreign company can now open a branch in Belarus. It remains without legal personality:

– all assets are legally those of the parent company;

– the powers of the branch director are determined by the parent company;

– the parent company fully bears the risks and obligations;

– the branch is registered as a permanent establishment for tax purposes.

The foreign branch director does not need a work permit, which facilitates management governance. But the transparency and direct liability of the parent company can be a drawback if one wants to compartmentalize country risk.

Quick Comparison of Business Establishment Forms

Registration Process: From Company Name to Tax Number

Once the structure is chosen, the registration process is relatively clear-cut.

Step 1 – Choose and Reserve the Name

The name must be in Belarusian or Russian, contain the legal form (e.g., “limited liability company”) and be distinct from existing names. The use of terms like “national”, “Belarus”, “republic” is regulated or even prohibited.

Reservation is done free of charge via the Unified State Register (USR), in person, by mail, or online. Deadlines range from instant (physical submission) to two business days (mail) or the next business day (online). The reservation certificate is valid for one month.

Step 2 – Prepare the Founding Documents

Requirements vary depending on whether the founder is a foreign individual or a foreign company.

For a founder who is an individual:

– notarized copy of the passport;

– certified translation into Russian or Belarusian;

– power of attorney if a local representative files the documents.

For a founder that is a foreign company:

Depending on the country, the extract must be:

– not legalized (Russia);

– apostilled (EU states, United States, Australia, etc.);

– or legalized via the consular route (some Arab countries, Singapore, Canada…).

All foreign documents must be translated into Russian or Belarusian with the translator’s signature notarized.

Step 3 – Filing the Creation Application

Two main avenues:

– physical submission to the regional executive justice department (or the Minsk City Executive Committee);

– electronic submission via the USR website, directly or through a notary.

Documents include:

– official registration form;

– statutes (charter) in two copies;

– proof of payment of the registration fee (1 base unit, approximately a dozen dollars) unless filing online;

– founders’ documents.

Representative offices and branches, however, must first obtain a specific authorization, after consultation with security services and the prosecutor’s office. The processing time is about 30 days, and can extend up to two months if additional requests are made.

Step 4 – Automatic Registrations and Post-Creation

Once the company is registered, several registrations are made automatically within five business days:

– tax authority (Ministry of Taxes and Duties);

– statistical bodies;

– Social Protection Fund;

– Belgosstrakh (accident insurance).

The entrepreneur retrieves the notifications from the registration authority or electronically.

Remaining tasks:

– opening a bank account in BYN (and in foreign currency if needed);

– choosing the tax regime (general vs. simplified) within 20 days of registration;

– possibly ordering a company seal (not mandatory but still widely used);

– obtaining licenses for regulated activities (banking, insurance, gambling, etc.);

– obtaining an electronic signature issued by the National Center for Electronic Services, useful for electronic declarations and exchanges.

Possible Tax Regimes: General, Simplified, Special Regimes

The choice of tax regime determines the accounting architecture, the administrative burden, and price competitiveness.

General Tax System (GTS): For Medium and Large Players

By default, any company falls under the general regime, unless it opts for the simplified system. This regime involves:

– profit tax (18–20%) calculated on the result (revenue – expenses);

– VAT (20%, 10% or 0%) on most sales of goods and services;

– property tax (approx. 1%) and land tax;

– other potential taxes (environmental, transport, advertising, excise…).

This regime allows:

– deducting expenses (purchases, salaries, depreciation, rent, etc.);

– recovering VAT on local purchases and imports;

– benefiting from a 0% rate on exports.

It is suited to medium or large-sized enterprises, with high cost intensity, structures oriented towards export or intra-EAEU trade.

Its drawbacks are well known: complex accounting, dense reporting (monthly, quarterly, annual declarations), strict control environment (transfer pricing, thin capitalization, audits).

Simplified Tax System (STS): For Small Structures

The simplified tax system is aimed at SMEs and micro-enterprises meeting thresholds for revenue and headcount. In its recent version:

– average headcount ≤ 50 employees over the first nine months of the previous year;

– cumulative revenue ≤ 2,625,000 BYN over that period.

Certain sectors (banks, insurance, Hi-Tech Park residents, activities subject to excise) are excluded.

Under STS, the company pays a single tax on revenue:

Accounting is simplified: a book of income and expenses is kept, the simplified tax declaration is often annual. In return, expenses are not deductible: margins must absorb the tax on revenue.

Ultra-Preferential Regimes: HTP, Great Stone, Free Economic Zones

A particularity of Belarus is the multiplicity of special regimes, with very strong incentives, which can radically transform a project’s profitability profile.

Hi-Tech Park (HTP): The IT Eldorado

Created in Minsk in 2005, the Hi-Tech Park offers an extraterritorial status: a company can be an HTP resident even if its offices are outside the park. Admission criteria focus on activities (software development, IT services, data, blockchain, digital marketing related to IT products, etc.).

The tax advantages are considerable:

– near-exemption from profit tax (except 9% on certain financial income and foreign dividends);

– VAT exemption on the sale of IT products and services in Belarus, including for imported services (licenses, consulting, hosting, development, marketing);

– massive reduction in social contributions: calculated on the national average salary rather than the actual salary, which significantly reduces the total cost for well-paid profiles;

– reduced withholding tax on dividends: 9% for individuals, 5% for foreign companies (before potential application of treaties);

– zero rate withholding for many services provided by non-residents (interest, royalties, IT services, advertising) to HTP residents.

The advantages are not only fiscal. On the migration front:

For an expatriate in tech, structuring their company as an HTP resident is often the key to remaining competitive against neighboring hubs (Poland, Baltic states, Georgia).

China-Belarus Industrial Park “Great Stone”

Located 25 km from Minsk, this park of 112.5 km² is the largest bilateral China-Belarus project. It targets electronics, telecoms, R&D, logistics, etc. Companies investing at least 5 million USD (or 500,000 USD for R&D) can become residents.

The incentives are among the most generous in the region:

– full exemption from profit tax on income from the sale of goods and services produced in the park for 10 years from the first recognition of profit;

– reduced rate at 50% of the standard rate after this period;

– exemption from dividend tax for 5 years (or 10 years if the investment reaches 50 million USD within 5 years);

– exemptions from real estate and land tax on property and land located in the park;

– exemption from customs duties and import VAT on goods intended for the construction and equipping of facilities;

– customs free zone regime with suspension of duties and taxes on imported inputs;

– relaxed currency rules: easing of restrictions on foreign currency transactions;

– facilitated migration regime (visa-free for foreigners involved in projects, work permit exemptions for certain managers and experts).

Free Economic Zones (FEZ)

Six FEZs cover Brest, Minsk, Gomel-Raton, Vitebsk, Mogilev and Grodnoinvest, until 2049. A Belarusian company becomes a resident by physically locating there and committing to invest at least 1 million EUR (or 500,000 EUR over 3 years).

Typical advantages for export-oriented or import-substituting production:

– exemption from profit tax on income from the sale of self-produced goods and services for 5 years, then taxation at 50% of the standard rate;

– exemption from real estate and land tax on property and land related to eligible activities;

– exemption from land tax and rent on state-owned land allocated for construction during the construction phase;

– customs free zone regime similar to Great Stone.

This is an option to consider for a foreign industrial SME seeking a cost-controlled production base to serve the EAEU.

Territorial Incentives: Small Towns and Rural Areas

To decongest Minsk and major cities, the government offers powerful advantages to companies that establish themselves in medium/small towns and rural areas.

Examples of measures:

– exemption from profit tax and real estate tax for 5 to 7 years for companies producing certified goods and services in these zones;

– exemption from customs duties on certain equipment less than five years old contributed in-kind to the charter capital of a new local entity;

– until December 31, 2028, 50% reduction of the profit tax rate (20% or 25%) on profits from sales in rural areas;

– exemption from real estate and land taxes on property and land used for the underlying activities.

For an expatriate willing to move away from Minsk, this can drastically lower the tax burden, at the cost of a more “authentic” commercial and linguistic environment.

Labor Law and Recruitment: What a Foreign Employer Must Know

Creating a company in Belarus involves navigating a highly formalized labor law. Improvisation or verbal arrangements are not an option.

Employment Contracts and Working Hours

The Labor Code requires a written contract, signed in the “old-fashioned” way (handwritten signature), with, at minimum:

– identity of the parties;

– place of work;

– position and job description;

– working hours and rest schedule;

– remuneration (base salary, bonuses);

– effective date;

– rights and obligations of each party.

Two main types of contracts:

– indefinite-term;

– fixed-term (maximum 5 years), including a particular form called “contract” with specific mechanisms for periodic certification and bonuses/penalties.

If a fixed-term contract expires and neither party requests termination, it converts into an indefinite-term contract.

Full-time corresponds to 40 hours per week. Overtime is capped (in practice: 10 hours per week, 180 hours per year) and paid at least at 200% of the usual rate or compensated with time off.

Leave, Maternity, Paternity

An employee is entitled to at least 24 calendar days of paid leave per year, of which at least 14 consecutive days. Unused days can be carried over.

Family policy is generous:

– maternity leave of 126 days (extended to 140, 146 or 160 days in case of multiple births, complications, or contaminated zones);

– parental leave until the child is 3 years old, with job protection (leave unpaid by the employer, but compensated by the social system);

– unpaid paternity leave of up to 14 days within the first six months of the child’s life.

Sick leave is funded by the Social Protection Fund, at 80% of the average salary for the first 12 days, then 70% thereafter, up to a monthly ceiling (300% of the national average salary).

Remuneration and Social Charges

Salaries are generally paid in Belarusian rubles (BYN), monthly, often in two installments (advances mid-month, balance at the beginning of the following month). The national minimum wage was around 726 BYN in early 2025.

The total cost for the employer includes:

– gross salary;

– 34% of gross for social contributions (pensions and social insurance);

– approximately 0.1% to 1% for work accident insurance (Belgosstrakh);

– 13% withholding for personal income tax (25% beyond a certain annual income threshold).

In regimes like HTP or Great Stone, the base for calculating contributions is capped at the national average salary, which significantly reduces the cost for highly qualified profiles.

Hiring Foreign Workers

The general rule: a foreigner needs a “special work permit” to be employed in Belarus, except for exemptions. Among the main exemptions:

The permit application is filed by the employer with the Ministry of Internal Affairs (migration services). Average processing time: 10 days, reduced to 5–7 days for investment projects and Great Stone residents. The permit is valid for one year (two years for highly qualified personnel), renewable once before having to re-file an application.

The employer must demonstrate that no suitable local candidate was found (labor market test) for certain positions, and respect a higher salary threshold for highly qualified specialists (e.g., more than 7,234.35 BYN monthly in a documented case).

Non-compliance (working without a permit, failure to report contracts or terminations, non-compliance with obligations to monitor foreigners’ stay) can be costly: significant fines, revocation of the permit, even expulsion of the foreign employee.

International Taxation, Transfer Pricing, and Compliance

Once the company is established, the relationship with the Belarusian tax authorities becomes a permanent issue, especially for international groups.

Transfer Pricing and Debt Limitation

Belarus has transfer pricing rules applicable to:

– transactions with related parties;

– operations with residents of offshore or non-cooperative jurisdictions;

– large taxpayers;

– operations involving strategic goods.

Various methods are provided (comparable uncontrolled price, resale price, cost plus, transactional net margin, profit split). Beyond certain thresholds (400,000 BYN, 2 million BYN…), the authorities can require documentation and adjust the tax base.

Note: there is no CFC regime (controlled foreign companies), nor anti-hybrid rules, nor a general GAAR. The country has not signed the multilateral MLI convention. This offers some flexibility but does not exempt from respecting the arm’s length principle or substance requirements.

Tax Residence and Treaties

A company is a tax resident if it is registered as a legal entity in Belarus. It is then taxable on its worldwide income, while a non-resident is only subject to tax on its Belarus-source income (via withholding or permanent establishment).

To claim treaty benefits, one must provide a foreign tax residence certificate, the authenticity of which may be verified via an official Belarusian portal, and often a beneficial owner declaration.

Local Bank Account: Mandatory Step

No serious activity can take place without an account in Belarusian rubles at a local bank. The banking system, composed of about twenty banks and two non-bank credit organizations, operates under IBAN since 2017, facilitating cross-border transfers.

For a non-resident company (branch, representative office) or a new subsidiary, the bank will generally request:

All foreign documents must be translated and apostilled/legalized. Banks strictly apply AML/CTF rules (2014 law, National Bank resolutions) and do not hesitate to refuse a client if the profile is deemed risky or documentation insufficient.

Typical processing times: 3 to 4 weeks for a foreign company, shorter for an individual. The presence of the representative is often required for the initial opening, although remote openings via power of attorney are sometimes possible.

Commercial Real Estate: Where to Locate and at What Price?

Virtually all foreign companies in Minsk rent their offices rather than buy. The market is sufficiently supplied to find spaces of all sizes, from coworking to prime towers, but still falls short of major international hubs in volume.

Rents vary greatly depending on location and building class. In 2020, prices ranged around 8 to 25 EUR/m²/month (utilities and VAT included), often higher if going through subleases or intermediaries.

Here is an indicative grid inspired by observed ranges:

Modern business centers like “Dana Center”, “Titan”, “Tolk Park”, “Prizma” or “Capital Palace” offer flexible floor space, parking, 24/7 security, high-speed connectivity. Specialized platforms and local agencies (BNK Estate, Silvan-Invest, etc.) provide detailed listings.

– urban planning designation of the premises (commercial, office, restaurant…);

– exact square footage, utilities and consumption (heating, electricity, water);

– presence of parking, security system, compliant ventilation;

– termination clauses, rent indexation, possible rent-free periods.

In some cases (economic zones, public buildings), it is possible to rent directly from public entities via official portals, at often competitive rates.

Alternative Paths: Employer of Record, Partnership, Acquisition

Creating an entity is not always the best solution to test the market. Two alternatives often come up in expatriate strategies.

Employer of Record (EOR): Test the Market Without an Entity

International service providers (Employer of Record) like some global players mentioned in studies offer to recruit personnel in Belarus on behalf of a foreign company, which remains the economic but not the legal employer.

The EOR handles for you: handling administrative formalities and legal employment obligations.

– concluding local employment contracts;

– managing payroll, tax and social declarations;

– complying with labor law and safety obligations;

– updating practices in case of reform.

Acquisition or Participation in an Existing Company

Another strategy is to acquire an existing Belarusian company or enter its capital. This allows:

– immediately benefiting from a license, staff, a client portfolio;

– avoiding certain approval delays, especially in regulated sectors;

– possibly profiting from an already obtained FEZ or HTP status.

But operations involving shareholders from “unfriendly countries” are heavily scrutinized. For example, any sale of real estate or shares held by residents of these countries may require approval from the Council of Ministers and payment of a fee of at least 25% of the transaction value. In case of non-compliance, the registration of the transaction can be annulled.

Residence, Visas, and Investment: Living On-Site as an Entrepreneur

Beyond the company, the expatriate must secure a robust residence status.

Visas and Residence Permits

To stay more than 90 days, a national D-type visa is necessary, often linked to a purpose (work, business, investment). This visa is generally a prerequisite for applying for a temporary residence permit.

Among the avenues for obtaining one:

– formal employment by a Belarusian company (your own LLC, for example) with a work permit;

– investment in a company (typically 135,000–150,000 USD minimum);

– real estate purchase (at least 150,000 EUR).

Administrative obligations are strict: registering the place of residence within a short time after arrival, renewing permits within the correct windows, informing authorities of any change of address or employer.

Leveraging Support and Networking Ecosystems

Internationalization does not happen in isolation. For an expatriate, access to business networks and support structures is a key success factor.

Public and Parapublic Organizations

Among the key players to know: the main industry leaders, innovators, regulators, and influencers.

– National Agency of Investment and Privatization: the state’s arm for attracting foreign investment, provides investment guides, advice on preferential zones and available projects;

– Belarusian Chamber of Commerce and Industry: assistance with commercial formalities, trade fairs, arbitration;

– Belarusian Universal Commodity Exchange (BUCE): trading platform to facilitate exports/imports of goods;

– Ministry of Foreign Affairs and Ministry of Economy: information on investment policies, international agreements, support programs.

Expatriate Networks and Diaspora Initiatives

Business life in Belarus for a foreigner also involves formal and informal networks:

Even if these networks are not all physically based in Belarus, they constitute valuable relational capital, especially in a moving geopolitical context where flows of Belarusian entrepreneurs to the EU (Poland, Lithuania, etc.) have intensified.

Managing Risk and Compliance: Practical Advice for an Expatriate

Creating your business in Belarus as an expatriate means accepting a more volatile legal and political environment than in many European countries. A few guidelines emerge from the available data.

Anticipating Restrictions Related to “Unfriendly Countries”

If you are a national or your holding company is domiciled in a state qualified as “unfriendly” (list including the EU, United States, Canada, etc.), you may face:

– restrictions on the acquisition or disposal of shares, assets, or real estate;

– need for specific approvals from the Council of Ministers to sell certain assets;

– higher taxation rates on dividends and certain flows.

Structuring the investment via an intermediate vehicle established in a third country with a bilateral investment treaty still fully in effect can sometimes mitigate this risk, but this must be designed with sharp legal advice to stay within international anti-abuse rules.

Careful Documentation and Archiving

The Belarusian system values written form:

– employment contracts, leases, commercial contracts;

– accounting records, inventories, transfer pricing documentation;

– correspondence with tax, migration, social authorities.

Adopt a Long-Term Tax Strategy

The multiplicity of favorable regimes (HTP, FEZ, Great Stone, rural incentives) can encourage over-optimization. The right reflex is to ask a few questions:

– does my activity really fit the criteria of this or that regime? (e.g., genuine R&D for Great Stone, IT services for HTP);

– do I have the substance (premises, qualified staff, real activity) to support the status?;

– what are the specific reporting obligations for this regime?;

– what is the duration of the stability guarantee (“grandfathering” clause)?

Plan the Exit from the Start

Finally, a point rarely discussed at the time of establishment, but crucial for any entrepreneur: how to exit?

– sale of the subsidiary to a third party;

– distribution of dividends and liquidation;

– transfer of activities to another jurisdiction.

Current restrictions on the sale of assets held by persons from “unfriendly countries” or the possibility of placing the company under temporary administration by the authorities (up to 18 months for some companies with foreign capital) must be factored into the strategy.

Structuring the investment via a holding company, drafting shareholder agreements with robust local partners, and including dispute resolution clauses (international arbitration, governing law) are classic tools to secure an exit in a more uncertain context.

Conclusion: A Niche Destination, to Approach Methodically

Creating your business in Belarus as an expatriate is neither impossible nor a trivial formality. It is a strategy that can make a lot of sense in specific niches:

– IT and digital services under the Hi-Tech Park regime;

– industrial production or Eurasia-oriented logistics, under Great Stone or in a free economic zone;

– service or distribution projects targeting the local market, benefiting from the simplified regime and moderate labor costs.

The entrepreneur who succeeds in Belarus is therefore one who combines three qualities: thorough legal and tax preparation upfront, the ability to quickly build ties with local actors (lawyers, accountants, chambers of commerce, expat networks), and a clear vision of their project’s time horizon – integrating both expansion phases and exit scenarios.

For those who master these parameters, Belarus can become not just a simple “tax haven”, but a hub for production, innovation, and services at the crossroads of Europe and the Eurasian space.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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