In today’s high-tech world, where innovations and startups are becoming engines of economic growth, the Hi-Tech Park (HTP) in Belarus stands out as a unique opportunity. It offers companies not just opportunities, but a platform for successful operation and scaling. Obtaining Hi-Tech Park resident status opens access to tax benefits and specialized infrastructure, creating a favourable ecosystem for exchanging knowledge and experience. This article will delve into the process and unique features of obtaining HTP resident status.
Why is it good to have the status of a Hi-Tech Park resident
Obtaining the status of a resident of the Hi-Tech Park (HTP) in Belarus is essential for many companies working in information technology and high technologies. Here are a few main reasons why it is beneficial:
1. Tax benefits
HTP residents enjoy significant tax advantages, including a preferential income tax rate of 9% on certain incomes, mainly from high-tech activities (the generally established income tax rate is 20%) and lower rates on other taxes (VAT, income tax on foreign investors). This permits effectively optimizing financial activities and directing more funds to business development and the creation of a favorable working environment.
2. Attracting investments
The HTP resident status often serves as an additional argument for investors, strengthening confidence in the company, since HTP residents are provided with preferential taxation of dividends that residents pay to individual investors: 9%, 6% and 0%, to foreign investors – 0% or 5% (the rate depends on the period for which dividends are paid). It may increase the chances of attracting external financing and participation in international projects.
3. Access to a unique infrastructure
HTP offers residents access to modern office space, laboratories, seminars, meetups, and other resources that significantly facilitate product development and testing.
4. Human resources potential
HTP is located in the centre of an active technological ecosystem, which makes it easy to find and attract qualified personnel. It is also important to be near educational institutions and research, which contributes to the constant replenishment of the personnel reserve.
5. Government support
Residents can participate in government support programs and receive advice from business development specialists.
6. Favorable conditions for startups
HTP creates a favourable environment for startups by providing access to mentoring, incubators and accelerators, which can significantly accelerate the growth and development of new projects.
7. Global opportunities
With the help of HTP, Belarusian companies can quickly enter the international market, gain access to external customers and partners, and contribute to business expansion in foreign markets.
Thus, the status of a resident of the Hi-Tech Park in Belarus not only provides many practical advantages for the company’s development but also creates positive conditions for innovative growth and the advancement of technology.
How to become a Hi-Tech Park resident
Only some companies can become Hi-Tech Park residents. Therefore, first, you need to analyze whether the company meets the requirements that the HTP has defined for residents. If the company meets such requirements, then you need to prepare a package of documents and submit it to the Hi-Tech Park Secretariat for consideration by the Supervisory Board of the Hi-Tech Park, which decides on the admission of companies and individual entrepreneurs to the HTP.
Let’s consider step-by-step the actions of a company that wants to become a resident of the HTP.
Step 1. Analyze the company’s activities
For a company to be eligible for HTP residency, it must be registered in Belarus, regardless of its location within the country. Foreign companies are not eligible for HTP residency, so we advise them to establish a legal entity in Belarus. Experienced lawyers can provide guidance on all aspects of registering a company with foreign investments in Belarus.
Companies seeking HTP residency must ensure that their activities, both during the application process and in the future, are among the 37 activities permitted for HTP residents. Here are some examples of these activities:
1. Analysis, design and development of information systems, including the creation of software, documentation and provision of permits for the use of software, as well as the assignment of exclusive rights to software, including computer games for various platforms.
2. Development and implementation of programs ordered by the user; design and development of automated control systems.
3. Provision of services for implementing, supporting, maintaining and operating information systems and software, including training in working with these systems and software, both our own and third-party production.
A complete list of activities can be found on the High-Tech Park website.
Requirements for contracts and taxation system, tax accounting
When submitting documents for consideration by the HTP Supervisory Board, the company’s all contracts must correspond to the types of activities of HTP residents.
HTP residents do not have the opportunity to use the simplified taxation system. Therefore, switching to the generally established tax payment system in advance is necessary.
Special requirements for companies working with tokens
Additional requirements have been established for companies, including crypto platform operators and crypto exchanges, engaged in certain activities with tokens.
In particular, the minimum size of the authorized capital of such companies has been determined, which must be contributed in cash – from 500,000 (approximately 137,800 euros) to 2 million Belarusian rubles (approximately 551,000 euros). The minimum size of the authorized capital depends on the specific type of activity with tokens.
Such companies must also hire officials responsible for the following:
- Preventing the legalization of proceeds from crime and the financing of terrorism.
- For system administration and information security.
- For compliance with the HTP regime.
Qualification requirements have been determined, and these officials and the head and chief accountant of such a company must meet them. Requirements are presented for the organizational structure, responsibilities, local documents and financial regulations of companies working with tokens.
Step 2. Drawing up a business project
A business project is a mandatory document that a company must submit to the HTP Supervisory Board for consideration to obtain the status of an HTP resident.
A business project must meet specific design and content requirements. Thus, the document should be no more than 20 pages long.
This document should indicate the types of activities permitted for HTP residents and determine the methods for implementing these activities. The projected financial results in the high-tech sector must be reflected in the business project. All calculations, except export-related transactions, must be given in Belarusian rubles.
When drawing up a business project, it is necessary to:
- Describe the company’s assets and the technologies at its disposal.
- Present a description of business processes and the structure of the personnel.
- Indicate what goods, works or services are planned to be produced as part of the business project.
The exact requirements for the business project are posted on the High Technologies Park website: https://www.park.by/upload/form/1. MEMO.pdf.
You can send a business project for preliminary review online by completing an application on the HTP website.
Step 3. Collect a package of documents
Before contacting the HTP Secretariat with a request to be admitted as an HTP resident, you need to prepare several documents required for consideration by the Supervisory Board.
The following documents are required:
- The company’s charter and its certified copy. The charter must be compared with the copy, after which the original will be returned to you.
- You also need to prepare a certificate of state registration of the company and its certified copy. The original will be required for verification with the copy and will be returned.
- The company’s director signs the business project.
- The pages of the business project do not need to be fastened with threads.
- All pages of the business project must be numbered.
- The company’s passport must contain information about the founders.
- To confirm the authority of the company’s director, you must provide a certified copy of the employment contract and a copy of the decision of the general meeting of participants on the appointment to the position of director.
Documents that can be provided for review but are not required
If you decide to give a copy of the balance sheet, each page of this copy must be certified. You can provide:
- Customer reviews.
- Information about awards and prizes in various competitions.
- Partnership agreements with well-known international companies for product development.
- Documents that confirm the protection of the technology (product) by patents or other means of legal protection. For example, confirmation of certificates for in-house production and means of individualization of products.
Step 4. Submit the documents
Documents for review are submitted to the HTP Secretariat along with an application for company registration in the HTP. The application is drawn up on paper, indicating the outgoing number and date, and signed by the company head. The documents are submitted in person by the company head.
Preliminary review of documents
You can send documents for preliminary review to the Secretariat online. The Secretariat will preliminarily review the documents and return them to correct any deficiencies. After making corrections, you can re-submit the documents for preliminary review.
Review of documents by the Supervisory Board
The Secretariat transfers the verified documents to the Supervisory Board, which usually reviews them within a month. If the Supervisory Board sends the documents for examination (legal or technical), the period for reviewing the documents can be extended to 2 months. The Supervisory Board returns the documents if it finds discrepancies in them. After correcting the deficiencies, the documents can be re-submitted. The period for correcting the deficiencies in this case is five days.
The Supervisory Board may decide to register the company as a resident of the High-Tech Park or refuse registration. If the decision is to refuse registration, it is always justified by citing expert opinions or a conclusion on the low significance of the business project for the development of the information technology sector. No fees or duties are required to review documents.
Step 5. Receiving a Certificate and agreeing with the HTP
A certificate of registration as a resident of the HTP is a paper document. The certificate is issued by the Secretariat of the Supervisory Board of the HTP within ten days after the Supervisory Board has made the relevant decision. The decision comes into effect on the first day of the month following the month in which the Supervisory Board decided to accept the company into the HTP.
Before the Supervisory Board’s decision takes effect, the new HTP resident concludes an agreement with the HTP on the terms of activity in the HTP, which the HTP determines.
Contact us
If you have any questions or disputes regarding HTP residency in Belarus, we will be happy to help! Our long-term experience will help you resolve any disputes in this area.
- +37529366-44-77 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
