Pursuant to the legislation of the Republic of Belarus, a foreign company cannot open a branch as a structural subdivision in Belarus. However, there are other forms of representation. First of all, a company wishing to be represented in Belarus shall decide on the functions to be delegated to the representation office.
If the purpose is only to carry out representative functions for the parent company (negotiate or search partners), then you can open a representative office accredited by the Ministry of Foreign Affairs, which is not deemed a legal entity.
If you are going to open a “branch” in order to make profit, i.e. your branch will conduct business directly from the Republic of Belarus, then you’ll need to register an affiliate legal entity, which will be deemed an independent company under the law of the Republic of Belarus.
Peculiarities of an MFA-accredited representative office:
- A representative office is not an independent legal entity, but is an independent structural subdivision of a foreign entity;
- Maintenance costs are higher than in the case of a legal entity, since for each year of activity the office has to pay a representative fee (state duty).
- The number of foreign nationals that can be employed by the representative office is determined by the Ministry of Foreign Affairs of the Republic of Belarus and is indicated in the permit;
- Taxation of representative offices and legal entities in regard to commercial activities does not differ, i.e. tax burden is the same;
- In order to enjoy most of the benefits and preferences provided by law, the legal entity must be registered in the territory of the Republic of Belarus;
- Representative offices are opened for a period of at least 12 months. A state fee of 65 basic units is charged for the issuance of a permit to open a representative office of a business entity.
The process of registering an affiliate is much simpler. It is very much similar to registering a new business.
- Notifying creditors of the decision to open an affiliate entity and obtaining their consent.
- Determining the location of the affiliate entity (in this case – the Republic of Belarus).
- Registration of the new affiliate entity with a local executive body of the Republic of Belarus.
Documents required for registration:
- Application for registration;
- Two paper copies and an electronic copy of the charter;
- A confirmation of payment of state duty (1 basic unit – about 11 US dollars).
The team of Borius Consulting LLC will assist you with registration formalities promptly (within at most 2 business days) and in a workmanlike manner. We assist in opening affiliate entities and MFA-accredited representative offices of foreign companies in the Republic of Belarus, as well as provide all necessary consultations and clarifications.