Doing business in Belarus - ey.com

1 Doing business in Belarus January 2017 2 Doing business in Belarus This brochure contains information as of 1 January 2017. Doing business in Belarus 1 The Doing business in Belarus publication has become an important source of information which the Belarusian Chamber of Commerce and Industry relies on when working with foreign partners. He who controls information controls the world. This famous quote has acquired new shades of meaning in the era of global trade: today, up-to-date and credible information is a top priority for report, which is traditionally prepared by EY, introduces foreign businesses to Belarus trade and economic potential, its competitive advantages, unique opportunities and investor incentives, providing comprehensive answers to their questions.

2 Our country is becoming an increasingly attractive destination for foreign investors. The keen interest taken in Belarus by the international business community is no coincidence. The key factors behind this interest include the country s strategical geographic location, stable economic and social environment, highly developed transport infrastructure, highly-educated workforce and innovation potential, as well as the active role that the country plays in integration has been steadily moving higher in the World Bank s annual ranking.

3 Its recent business climate reforms include simplifying electricity connection procedures, improving the transparency and reliability of land management, upgrading property transfer rules, developing a credit histories system, and strengthening the rights of minority hope that Doing business in Belarus will earn the attention of the foreign business community, increase its interest in establishing partnerships with Belarusian companies, and become a practical guide to launching joint my part, I pledge that the Belarusian Chamber of Commerce and Industry will continue to assist both Belarusian and foreign companies in establishing worthwhile contacts, and I wish them every success in their business Ulakhovich Chairman of the Belarusian Chamber of Commerce and Industry2 Doing business in Belarus All business success stories have three crucial enablers: a good product, a market niche, and a professional team.

4 If you are interested in Doing business in Belarus , you presumably have a good product already. Belarus , for its part, can offer a wide array of vacant market segments, access to all the five EEU markets ( Belarus , Russia, Kazakhstan, Armenia and Kyrgyzstan) and the great team that you are looking for. EY s annual Doing business in Belarus publication provides comprehensive, up-to-date and credible information about Belarus economic background and regulatory environment for Doing business in the country, and is designed to help foreign investors tap the opportunities that the Republic of Belarus has to offer.

5 The National Agency for Investment and Privatization is ready to help you build your team in Belarus . We will be your reliable partner on behalf of the government. The Agency helps investors that have chosen Belarus as their destination feel at home in the country, providing all-round support to them. We supply investors with reliable information about Belarus investment opportunities and business climate, and support their projects throughout their life cycle, including at the post-investment hope that this overview will mark the beginning of your successful business journey in the Republic of Belarus , and we will be happy to see you among our partners!

6 Welcome to Belarus !Natalya Nikandrova Director of the National Agency for Investment and Privatization Doing business in Belarus 3In 2016, Belarus marked its 25th independence anniversary. Belarus has overcome economic decline in a relatively short time-period. This was thanks to the balanced use of the country s industrial potential, coupled with a major overhaul of all sectors and our commitment to building an economy of the are justly proud of our emerging, cutting-edge industries such as nuclear power, space technology and biochemistry.

7 The Great Stone Chinese-Belarusian Industrial Park, also known as the pearl of the Silk Road Economic Belt, is a bright example of how Belarus is turning innovative ideas into reality. The park will drive the development of new, promising manufacturing technologies in priority areas such as pharmaceuticals, fine chemistry, biotechnologies, machine building and new improved ranking in the World Bank s Doing business 2017 report testifies to our significant competitive advantages: Belarus moved up 13 places to 37.

8 Belarus was named one of the top business reformers globally. In addition, our country ranked 30th in facilitating cross-border trade for the second year in a row, ahead of all its CIS and EEU partners, as well as EU member countries such as Germany, Finland, Ireland, Malta and Cyprus. Being an open economy, Belarus exports more than 50% of domestic output. While Belarusian products have traditionally been in high demand in the East, today they are also gaining popularity in the West. The newly updated website , a tool designed to further propel this trend, gives Belarusian manufacturers great opportunities to tap into foreign markets.

9 The Doing business in Belarus report, prepared by EY, will help readers discover what changed in the country last year and will give a reliable picture of the current situation in Belarus . We hope that it will prove to be a useful manual to the investment Sobolev Head of the Foreign Trade Department of the Belarusian Ministry of Foreign Affairs 4 Doing business in Belarus Doing business in Belarus Contents 5 Contents Foreword ..6 General economy ..10 Exports/Imports 11 General economic development trends 12 Leading industries during the crisis 14 Financial system 15 Currency control 16 Investment legislation and main incentives.

10 20 Investment legislation 21 Investment agreement with Belarus 21 Free economic zone 23Hi-Tech Park 24 Great Stone China- Belarus Industrial Park 25 business activities in medium and small-sized cities and rural areas forms 29 Licensing 31 Mergers and acquisitions 31 Shareholders agreements 32 Taxes at a glance 32 Corporate profit tax 33 Withholding tax 41 Value added tax 44 Real estate tax 48 Other taxes 49 Special taxation regimes 51 Customs