Companies in the Republic of Belarus

In the recent years a firm tendency towards inflow of foreign capital has been observed. Starting since 2002, foreign investments in the amount of more than 4.6 billion USD have been placed in Belarus, including direct foreign investments in the amount of about 2.2 billion USD. But what attracts foreign investments?

Reasons for Making Profitable Investment in the Republic of Belarus:

• favourable economic and geographical location;
• favourable investment climate;
• developed industrial, scientific and export potential;
• highly skilled manpower which has accumulated experience of work at modern enterprises.
• Investors may carry on business in Belarus either through legal entities incorporated in
• accordance with the laws of the Republic of Belarus, or through representative offices.

A legal entity is considered incorporated as of the date of its state registration, i.e. the date it is

entered into the Unified State Registrar of legal entities. Any legal entities in which authorized capital share of foreign investments makes not less than USD 20'000 and which have profit earning as their object and/or distribute their derived profit to their members, shall be deemed commercial companies with foreign investments. Companies having shares of foreign investments are registered as commercial joint ventures and companies having 100 per cent of foreign investments - as commercial foreign companies.

The establishment of such companies is regulated by the Investment Code of the Republic of Belarus. Any commercial company with foreign investments may be created through its establishment or as the result of purchase by any foreign investor of the membership interest (shares) in any earlier established legal entity without foreign investments. The decision on creation of a commercial company with foreign investments shall be made by its founders (members) independently, in particular, in case of purchase. These companies are registered on submitting the required documents to Belarusian recording bodies including The Ministry of Justice, The Ministry of Finances, Regional Executive Committees and others, and on paying registration fees equivalent to Eur 60. The authorized capital of joint ventures shall be formed not less than by 50% within the first year from the date of the state registration of such company through entering by each founder (member) and in full - before expiration of two years from the date of the state registration. The members of a company liable for obligation of the company to the extent specified by the company's constituent documents, but not less than in the amount equivalent to Eur 1200.

Any commercial company with foreign investments may carry out any kinds of activities, provided they are not prohibited by the legislation of the Republic of Belarus and answer the purpose stated in the statute of such company.

Certain kinds of activities may be carried out by any commercial company with foreign investments on the grounds of special permissions (licenses) only.

Most common forms of profit-making organizations in Belarus are:

· Open joint-stock company (ОАО);

· Closed joint-stock company (ZAO) ;

· Limited liability company (ООО);

· Unitary Enterprise;

· Forms of not-for-profit organisations include foundations, associations etc.

Examples:

-MAZ-MAN

Belarus-German JV is a producer of modern large tracks of European class.

- JV Ltd. „Mobilnaya tsifrowaya swyaz"

The first operator of digital communication of GSM standard. 7 years in the market.

- JV Santa Impex Brest

The JV was established in spring 1993 as a Belarus-German JV and is today the an example of the successful investment project in the free economic zone "Brest"

Other types of companies in Belarus:

1. The Belarusian State Concern Bemeftekhim., Bellegprom Concern

2. The Production Republican Unitary Enterprise "Minsk Automobile Plant" is one of the largest state-run enterprises in Belarus producing heavy-duty trucks, buses, trolleybuses and trailer equipment

3. Joint Stock Companies "Brest Carpets", "Savushkin Product"

Date: 2015-12-11; view: 1154