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 state instruments to activate the investment process within the framework of the economic impact on domestic and external investments.
Currently, favorable legal conditions have been formed in Belarus for the activities of investors.
The legal basis and basic principles of investment in the territory of the Republic of Belarus are established by the Law of the Republic of Belarus No. 53-3 ”On Investments" dated July 12, 2013.
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 intellectual property rights;
- acquisition of shares, shares in the authorized fund, shares in the property of a commercial organization;
- based on a concession;
- in other ways, except those prohibited by 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 on the terms established by the legislation of the Republic of Belarus.
In order to create additional conditions for making investments, an 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 defined by Decree of the President of the Republic of Belarus No. 10 of August 6, 2009 ”On creating additional conditions for making investments in the Republic of Belarus".
The investment agreement with the Republic of Belarus must specify: the
object, scope, terms and conditions of investment; the rights and obligations of the investor and the Republic of Belarus; the responsibility of the parties to the agreement 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, a number of significant benefits are provided to the investor when implementing an investment project in Belarus.
The procedure for concluding investment agreements with the Republic of Belarus is defined by Resolution No. 563 of the Council of Ministers of the Republic of Belarus dated 07/19/2016, which approved the Regulation on the procedure for concluding, Amending and terminating investment agreements between an investor and the Republic of Belarus.
For the purpose of development of regions and sectors of the economy of Belarus, the implementation of investment projects, including the creation and development of the organizations with strategically significant investor, by the decree of the President of the Republic of Belarus dated 06.08.2009 No. 413 granted the right to physical and legal persons to represent the interests of the Republic of Belarus (hereinafter - investment agents) for:
- attract investors for 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 Resolution No. 1448 of the Council of Ministers of the Republic of Belarus dated November 6, 2009.
Decree of the President of the Republic of Belarus No. 1 dated 16.01.2009 ”On State Registration and liquidation (termination of activity) of business entities" simplified the procedure for state registration and liquidation of business entities.
Since February 1, 2009, the declarative principle of state registration of business entities has been 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 reduced as much as possible.
The Decree significantly simplifies the requirements for the constituent documents of business entities, eliminates 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. In case of liquidation of legal entities and termination of the activities of individual entrepreneurs, the principle of ”one window" is fixed in the relationship of the registering authority with other state bodies.
Decree of the President of the Republic of Belarus dated 07.05.2012 No. 6 ”On stimulating entrepreneurial activity on the territory of small and medium-sized urban settlements, rural areas" defines measures of economic stimulation of entrepreneurial activity on the territory of medium-sized, small urban settlements, rural areas, according to which commercial organizations and individual entrepreneurs operating throughout the territory of Belarus, with the exception of regional cities, Minsk, as well as cities: Baranovichi, Bobruisk, Borisov, Zhodino, Lida, Lida, Mozyr, Molodechno, Novopolotsk, Orsha, Pinsk, Polotsk, Rechitsa, Svetlogorsk, Slutsk, Soligorsk within seven calendar years from the date of state registration:
- the right not to calculate and to pay tax on profit (commercial organizations) and income tax on individuals (individual entrepreneurs), respectively, in respect of the profits and income derived from sales of goods (works, services) of own production;
- exempt from paying the state fee for the issuance of 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), extending its validity period;
- has the right not to calculate or pay other taxes, fees (duties) (with the exception of value-added tax, including value-added tax levied on the import of goods into the territory of the Republic of Belarus, excise taxes, stamp and offshore fees, state duties, patent duties, customs duties and fees, land tax, environmental tax, tax for the extraction (withdrawal) 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), contributions to innovation funds formed in accordance with legislative acts;
- exempt from the mandatory 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 leasing property.
The conditions for the involvement of unused state property in economic turnover have been defined (Decree of the President of the Republic of Belarus No. 150 dated 29.03.2012 ”On certain issues of Lease and gratuitous use of property“, Decree of the President of the Republic of Belarus No. 294 dated 04.07.2012 "On the procedure for disposal 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 27.12.2007). 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 possible refusal to provide land plots.
The economic entities that have received the status of a "bona fide participant in foreign economic activity“ have the opportunity to import goods for their production needs in a simplified manner and, if necessary, use them immediately for production without customs clearance - the relevant customs procedures will be carried out according to the declarative principle without presenting the goods to customs (Decree of the President of the Republic of Belarus No. 40 of 28.01.2008).
The list of benefits for residents of free economic zones has been expanded and guarantees of the immutability of the special legal regime of taxation have been provided to them. (Decree of the President of the Republic of Belarus No. 42 dated 28.01.2008).
Conditions have been created to reduce the construction time of facilities and the development of the material and technical base, procedures in the construction industry have been simplified, and other developers have been granted the right 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 No. 277 of 15.05.2008), etc.