The investment process is one of the main factors determining the socio-economic development of the Republic of Belarus, its technological progress and the efficiency of material production.
This is due to the increased interest in government instruments for enhancing the investment process as part of the economic impact on domestic and foreign investment.
At present, Belarus has formed a favorable legal environment for the activities of investors.
The legal framework and basic principles for making investments on the territory of the Republic of Belarus are established by the Law of the Republic of Belarus dated July 12, 2013 No. 53-3 “On Investments”.
Investment activity in the republic is carried out as follows:
- Creation of a commercial organization;
- Acquisition, creation, including through the construction of real estate objects;
- Acquisition of rights to objects of intellectual property;
- Acquisition of shares, shares in the authorized fund, shares in the property of a commercial organization;
- On the basis of a concession;
- In other ways, except for those prohibited by the legislative acts of the Republic of Belarus.
The investor has the right to conclude an agreement with the Republic of Belarus related to the implementation of investments in the manner and under the conditions established by the legislation of the Republic of Belarus.
In order to create additional conditions for making investments, the investor has the right to conclude an investment agreement with the Republic of Belarus, which is concluded on the basis of a decision of a state body or other state organization determined in accordance with the legislation of the Republic of Belarus.
The mechanism for concluding an investment agreement with an investor is determined by the Decree of the President of the Republic of Belarus No. 10 of August 6, 2009 “On the creation of additional conditions for making investments in the Republic of Belarus”.
An investment agreement with the Republic of Belarus must define:
object, volume, terms and conditions of investment; the rights and obligations of the investor and the Republic of Belarus; responsibility of the parties to the contract for non-compliance with its terms; the term of the investment agreement; other conditions determined in accordance with the legislative acts of the Republic of Belarus.
With the conclusion of this agreement, the investor in the implementation of an investment project in Belarus is provided with a number of significant benefits.
The procedure for concluding investment agreements with the Republic of Belarus is determined by the resolution of the Council of Ministers of the Republic of Belarus dated July 19, 2016 No. 563, which approved the Regulation on the procedure for concluding, changing and terminating investment agreements between an investor and the Republic of Belarus.
In order to develop regions and sectors of the economy of Belarus, implement investment projects, including the creation and development of organizations with the participation of a strategically significant investor, by the Decree of the President of the Republic of Belarus No. 413 dated 06.08.2009, individuals and legal entities are granted the right to represent the interests of the Republic of Belarus (hereinafter - investment agents) on questions:
- Attracting investors for the implementation of investment projects in the interests of the Republic of Belarus;
- Support of investment projects (during their preparation and implementation), including the provision of consulting, legal and marketing services to investors, as well as services for the development of documents necessary for the implementation of these projects.
The procedure for granting the status of an investment agent was approved by the Resolution of the Council of Ministers of the Republic of Belarus dated November 6, 2009 No. 1448.
Decree of the President of the Republic of Belarus dated January 16, 2009 No. 1 "On state registration and liquidation (termination of activities) of business entities" simplified the procedure for state registration and liquidation of business entities.
From February 1, 2009, the declarative principle of state registration of business entities was introduced, with the exception of banks and non-bank credit and financial organizations. Registration is carried out on the day of submission of documents, and the list of documents provided for registration is minimized as much as possible.
The decree significantly simplifies the requirements for the constituent documents of business entities, the requirements for the minimum size of the authorized capital of commercial organizations (except for joint-stock companies, banks and insurance organizations. The amount of the authorized capital is determined by legal entities independently. Upon liquidation of legal entities and termination of activities of individual entrepreneurs, the principle of “one window” is fixed in the relationship of the registering body with other state bodies.
Decree of the President of the Republic of Belarus of 07.05.2012 No. 6 "On stimulating entrepreneurial activity in the territory of small and medium-sized urban settlements, rural areas" defines measures of economic stimulation of entrepreneurial activity in the territory of medium-sized and small urban settlements, rural areas, in accordance with which commercial organizations and individual entrepreneurs operating throughout Belarus with the exception of regional cities, Minsk, as well as cities: Baranovichi, Bobruisk, Borisov, Zhodino, Zhlobin, Lida, Mozyr, Molodechno, Novopolotsk, Orsha, Pinsk, Polotsk, Rechitsa, Svetlogorsk, Slutsk, Soligorsk within seven calendar years from the date of their state registration:
- Has the right not to calculate and not pay income tax (commercial organizations) and income tax from individuals (individual entrepreneurs), respectively, in relation to profits and incomes received from the sale of goods (works, services) of their own production;
Exempted from paying the state duty for issuing a special permit (license) for legal entities and individuals to carry out certain types of activities (including those related to specific goods (works, services), making changes and (or) additions to such a special permit (license), extension of the term of his (her) validity;
Has the right not to calculate and not to pay other taxes, dues (duties) (with the exception of value added tax, including value added tax levied when importing goods into the territory of the Republic of Belarus, excise taxes, stamp and offshore duties, state duties, patent duties, customs duties and taxes, land tax, environmental tax, tax for the extraction (removal) of natural resources and other taxes calculated, withheld and (or) transferred in the performance of duties of a tax agent, unless otherwise provided by this Decree), deductions to innovative funds formed in accordance with legislative acts;
- Are exempt from the obligatory sale of foreign currency received under transactions with non-resident legal entities and non-resident individuals from the sale of goods (works, services) of their own production, including from the lease of property.
The conditions for the involvement of unused state property in the economic turnover have been determined (Decree of the President of the Republic of Belarus dated March 29, 2012 No. 150 "On some issues of lease and gratuitous use of property", Decree of the President of the Republic of Belarus dated July 4, 2012 No. 294 "On the procedure for disposing of state property") .
The procedure for the seizure and provision of land plots has been simplified (Decree of the President of the Republic of Belarus No. 667 of December 27, 2007). The adoption of the document significantly reduces the investment risks of persons interested in the provision of land plots, currently associated with the need to prepare expensive construction documentation and a possible refusal to provide land plots.
An opportunity has been obtained for business entities that have received the status of a “bona fide participant in foreign economic activity” in a simplified manner to import goods for their production needs and, if necessary, use them immediately into production without customs clearance - the relevant customs procedures will be carried out on a declarative basis without presenting the goods to customs (Decree President of the Republic of Belarus dated 28.01.2008 No. 40).
The list of benefits for residents of free economic zones has been expanded and guarantees of the invariability of the special legal regime of taxation have been provided to them. (Decree of the President of the Republic of Belarus dated January 28, 2008 No. 42).
Conditions have been created to reduce the time required for the construction of facilities and the development of the material and technical base, simplified procedures in the construction industry, and also granted the right to other developers, along with UKS, to build residential premises for citizens using state support for these purposes, which will increase the volume of housing. construction for those in need (Decree of the President of the Republic of Belarus of 15.05.2008 No. 277), etc.
