Legal presence in Belarus in 2025

Branch of a foreign organization.

Advantages:

• The company controls the activities of the branch and determines the limits of its powers;
• All property, including money, belongs to the parent company: it can be transferred and seized by the decision of the parent company;
• A manager who is a foreign citizen does not need to obtain a special work permit and a work visa.

Disadvantages:

• Branches must be registered as a permanent establishment, so they are subject to a similar tax regime;
• The parent company remains the beneficiary, including for the purposes of bank compliance;
• The parent company bears all risks and responsibilities for the activities of the branch.

Who it is suitable for?

Companies with an established business that are already operating or planning to enter the Belarusian market. The branch is an ideal option for registration, for example, of sales representatives on the territory of Belarus. The head of the branch will be able to participate in procurements, conclude transactions on behalf of the parent company, which will ensure more prompt involvement.

Subsidiary company.

Advantages:

• The subsidiary company is independently responsible for its debts and obligations, which can reduce the risks for the parent company (BUT! The parent company may be brought to subsidiary liability for the obligations of the subsidiary company);
• When conducting KYC procedures the status of the subsidiary company will be a subject to verification;
• Has the right to obtain licenses for licensed activities;
• Has the right to use special legal regimes (HTP, FEZ, Technoparks, etc.).

Disadvantages:

• Carries a full tax burden;
• Money or property cannot be transferred free of charge to finance the company's activities;
• If the manager (director) is a foreign citizen, the special permit for work is required;
• There is a need to keep separate accounting and document management.

Who it is suitable for?

The option of opening a legal entity is suitable for companies wishing to conduct business activities in Belarus without limits, expand their business, for example, to implement a new direction of activity, open a new production site.

The company's entry into an existing legal entity. You can continue your activities not only by creating a company from scratch, but also by buying an existing company, if the direction and goals of its activities are very similar to yours. Before buying, we recommend conducting due diligence to ensure the safety of your activities.

When deciding on the further existence of your business in Belarus and follow-up actions, it is important to carefully evaluate all the pros and cons, conduct a detailed analysis and develop a strategy for further activities. And specialists of the Corporate Law, M&A practice can help with this.