Creation a branch of a foreign company in Belarus
Representation of a foreign organization is a legal form, which is ideal for a foreign company to probe the national market of Belarus. Our lawyers have opened many foreign representative offices, have extensive experience in this area of practice and are ready to advise and assist you at all stages of registration of the representative office in Belarus.
A representative office of a foreign commercial company may carry out preparatory and auxiliary activities in the name and on behalf of the parent foreign organization, including the following:
The right to open a representative office of a foreign organization in the Republic of Belarus is granted to foreign commercial and non-commercial legal entities and other organizations registered in the established order in a foreign state.
First of all, a foreign company must decide to open a representative office. The authorized body of the company shall draw up the decision in accordance with the legislation of the country where the parent company is located in the form of a protocol, the decision of the sole owner, etc. The decision approves the regulations on representation and determines the procedure for appointing a director and the legal address.
Opening of a foreign representative office is allowed on the basis of the permission of the Regional Executive Committee or the Minsk City Executive Committee. In order to receive it, it is necessary to prepare and submit the following package of documents:
A state duty in the amount of 65 base values for each year of the permit, which is equivalent to approximately 2,490 US dollars, is charged for the issuance of a permit to open a representative office of a foreign commercial organization.
Documents drawn up in a foreign language must be translated into Russian or Belarusian and legalized in accordance with the established procedure.
Permission to open a representative office is issued for a period of 3 years with the possibility of its extension for the same period.
The package of documents for opening a representative office is considered within a month. After the issuance of the permit, the representative office is obliged to become a tax resident, as well as a tax resident of the Social Protection Fund and the insurance organization “Belgosstrakh”.
The foreign parent company may freely transfer money and other property to the balance of the representative office. The representative office may also independently acquire property in the territory of the Republic of Belarus in the course of its activities. Regardless of the sources of the property on the balance, all property, including monetary funds, shall be the property of the parent foreign company.
The activity of representative offices within the framework of the programs approved by the foreign organization is associated with the possibility of allocation of financial, material and other resources (grants) to public organizations (associations) and individuals. Allocation of resources (grants) outside the implemented programs and projects is prohibited and may result in termination of the representative office activity.
A representative office has the right to open bank accounts in foreign currency and Belarusian rubles in the territory of the Republic of Belarus. The representative office is entitled to carry out currency transactions on bank accounts both in cash and in non-cash form.
The citizens of Belarus and foreign citizens may form the workforce of the representative office. The number of foreign employees of the representative office must not exceed five persons. In order to work for each foreign citizen (except for the head of the representative office and citizens of the EEU member-states) it is necessary to obtain a special permit to work. Employees perform their labor functions on the basis of labor contracts concluded with the representative office. In order to perform one-time work with the citizens of Belarus, civil law contracts can be concluded (independent-work contracts, etc.).
Taxation of the representative office consists, among other things, of the payment of real estate tax in the amount of 1% of the value of buildings and structures per year, and in respect of objects of over-normative construction in progress – 2% of the value per year. The representative office is obliged to calculate and withhold income tax from the salaries of its employees, as well as pay mandatory insurance contributions to the Social Protection Fund in the amount of 35%.
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The Leshchinsky Smolsky Legal Office is recommended by the international legal directory IFLR1000 as the leading law practice in Belarus in the field of financial transactions
Danila Smolski and Pavel Leshchynski act as legal advisers to the World Bank Group as part of the preparation of a global report on doing business in the world Doing Business
Legal Office "Leshchynski Smolski" provides legal support to the Embassy of Germany in the Republic of Belarus regarding registration of relations with national companies
LSL is listed in the International Directory of IP law firms and individual patent and trademark attorneys from the country of Belarus
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