To Attention of Investors

— What is the minimum amount of money that can be invested by a foreigner in setting up a company in Belarus?

— Foreign individuals have the right to create enterprises in Belarus using any amount of investment; it depends on the organisational and legal form and status of the founding enterprise. If the contribution of the foreign investor or investors to the charter capital of the founding enterprise is less than $20,000, the enterprise has the status of a commercial organisation with foreign investment; it then enjoys some preferences under the Investment Code of the Republic of Belarus. If the foreign individual contributes more than this, then his company has equal status with an enterprise created by Belarusian investors. Our legislation sets the following: 400 Euros for an additional liability company (not less than 2 founders), 800 Euros for a private unitary enterprise (must have a single founder), 1,600 Euros for a limited liability company (no less than 2 founders) and 3,000 Euros for a closed joint stock company (no less than 2 founders).

— May a foreigner contribute property to charter capital?

— In accordance with Belarusian legislation, contributions to a company with foreign investment can be made in monetary form or in property; since the beginning of this year, custom duties and value-added tax (at a rate of 18 percent) must be paid on the import of such property however. Charter capital is usually comprised of purely monetary contributions as a result.

— May a foreign individual founding a Belarusian company transfer profits from outside the Republic of Belarus?

— According to the Investment Code, a foreign individual may transfer profits earned in Belarus outside of the country only after income tax is paid. Unless covered by international treaties on avoidance of double taxation, a 15 percent tax is imposed on Belarusian companies earning profit within Belarus.

Answers presented by law office "Ulasova and partners"