Since October 1, 2024, individual entrepreneurs’ requirements and activities have changed in Belarus. These innovations affect many aspects of business – from the possibility of registering individual entrepreneurs to compulsory social insurance. This article will look at the main changes and difficulties that have affected the business community in Belarus.
Who are small business entities?
From October 1, 2024, such a concept as “individual entrepreneurial activity” will appear. This is the activity of individuals who conduct business without opening a company:
- Individual entrepreneurs.
- Artisans.
- Self-employed freelancers.
- Persons who carry out activities in the field of agrotourism.
Small business entities include individuals who carry out entrepreneurial activities and organizations employing up to 100 people. The Ministry of Taxes and Duties will maintain the Register of Small and Medium-sized Businesses, including such entities.
What kind of activities can be carried out without opening a company
The Belarusian government will approve the types of activities that freelancers and individual entrepreneurs can conduct. The types of activities have been submitted for public discussion until May 25, 2025. Three activities are offered in total: for artisans, individual entrepreneurs, and the self-employed. It is assumed that the lists of activities will be changed no more than once every two years, and the changes will not take effect immediately after their publication and not earlier than six months after the official publication.
An individual will be able to conduct individual entrepreneurial activity, for example, as an individual entrepreneur – by type of activity from the list for entrepreneurs and at the same time be self-employed, a craftsman by type of activity from the corresponding lists.
Activities of individual entrepreneurs
If we do not consider the list of activities for artisans, individual entrepreneurs will presumably be able to engage in business from October 2024:
- Printing of products.
- Employment of citizens abroad.
- Activities related to precious metals and stones.
- Activities in the field of accounting and auditing.
- Tax consulting.
- Retail and catering.
- By renting out property.
- Advertising activities.
- Activities in the field of education.
- Other activities.
- Currently, entrepreneurs can conduct any activity that is not prohibited by law.
Activities of the self-employed
The list of self-employed persons who conduct independent professional activities contains 81 positions. In particular, it is:
- Office activities, document preparation and translations.
- Graphic design.
- Website development.
- Computer and software setup, software repair and maintenance.
- Shooting and editing photos and videos.
- Fulfilling orders from other persons: entrepreneurs, non-entrepreneurs, companies outside their locations using the Internet to fulfill orders and transfer results.
What to do when your type of activity is not on the list of activities
Until December 31, 2025, individual entrepreneurs registered before October 1, 2024, will be able to engage in activities that are not on the officially adopted list of activities for individual entrepreneurs.
By December 31, 2025, such entrepreneurs must either stop doing business or choose another type of activity from the list of permitted activities. A third way is also envisaged: by December 31, 2025, an individual entrepreneur can register a legal entity—a company with one founder—that will conduct activities not included in the list of activities allowed for individual entrepreneurs. For example, today, there is no wholesale trade among the types of activities in the project.
A special procedure for the creation of companies by individual entrepreneurs
A special procedure for the creation of companies by entrepreneurs whose activities are not included in the list of permitted activities is that:
- The company will transfer all the rights and obligations of an individual entrepreneur, including the payment of taxes and accounts payable.
- The company is registered on the day of applying for state registration.
- The company’s location may be the residential premises of an individual entrepreneur or the founder.
- The procedure for termination of entrepreneurial activity is not carried out. The activity of an individual entrepreneur is terminated from the moment of state registration of the company.
- Official documents related to entrepreneurial activity are reissued free of charge from an individual entrepreneur to a company.
- Individual entrepreneurs in the lists of persons involved in extremist and terrorist activities cannot register companies in a special order.
What should an entrepreneur do before registering a company in a special order
Before applying for state registration of a company with one participant to the registration authority, an entrepreneur will need:
1. Choose the form of ownership, for example:
- Limited liability company.
- A private unitary enterprise.
- A company with additional responsibility.
- An open or closed joint-stock company with one shareholder.
2. Select the company name and coordinate it with the registration authority. You can check the selected name for approval online on the web portal of the Unified State Register of Legal Entities and Individual Entrepreneurs. The registration authority’s certificate of approval of the company name is valid for one month. During this period, an agreed-upon name is reserved for the individual entrepreneur.
3. Inform all creditors in writing:
- About the decision to create a company.
- All the rights and obligations of an individual entrepreneur are transferred to the company.
4. Issue a written decision on the establishment of the company and the articles of association of the company.
5. Issue a transfer certificate on the date before applying for state registration of the company. The act must list the property and obligations transferred to the company from an individual entrepreneur. Documents related to the activities of an individual entrepreneur are attached to such an act.
6. Submit to the tax inspectorate a declaration on taxes paid by an individual entrepreneur no later than the date preceding the date of state registration of the company. The declaration is submitted for the past tax period or for the period from the beginning of the tax period to the day of filing the statement.
6. If an individual entrepreneur has employees, they need to be offered in writing a transfer to a new company for the same positions and professions for which they are registered with an individual entrepreneur. If the employees agree, they must be hired by the company. In case of refusal, dismiss due to refusal of work due to changes in essential working conditions.
What should be done after the state registration of a company created by an individual entrepreneur
1. Submit to the tax inspectorate no later than one month from the date of state registration of the company:
- The transfer certificate in electronic form.
- Information about the remnants of some goods.
- Information about unused forms with a certain degree of protection.
2. Transfer to the State Labeling System of Goods no later than one month from the date of state registration of the company information about the control marks received by the company from an individual entrepreneur, generated labelling codes, and other means of labelling.
3. The Information and Publishing Center for Taxes and Duties must receive information on amendments to the cash register equipment control system within two months of the company’s state registration.
4. Transfer funds from the individual entrepreneur’s accounts to the company’s accounts through the bank.
If an individual entrepreneur has licenses, they will not need to be independently reissued to the company. After the company’s state registration, the licensing authority will independently renew the license.
5. Apply for the employment of employees who have agreed to transfer from an individual entrepreneur to a company.
6. To pay taxes of an individual entrepreneur no later than the 22nd day of the month following the quarter in which the company is registered.
Who will have to pay mandatory social insurance contributions
From October 1, 2024, those who pay a single tax and are self-employed, artisans and owners of agricultural estates will have to pay mandatory insurance premiums to the Social Protection Fund.
They pay contributions for 2024 no later than March 1, 2025. For the following years, contributions must be paid by March 1 – for the past calendar year. The contribution amount is 29% of the self-determined income but cannot be lower than the minimum wage set and indexed by the law for the month contributions are paid.
Those who worked periodically can declare periods during which they did not conduct activities. In this case, they will not pay contributions for the entire year. To do this, you must submit the PU-Z form electronically. From October 1, 2024, you can interact with the Social Protection Fund online without an electronic digital signature through the corporate portal of the Social Protection Fund.
It will not be necessary to pay mandatory contributions to pensioners, although they can do so voluntarily upon application to the Social Protection Fund.
How we can be helpful in a situation of changing requirements for individual entrepreneurship
We can:
- Advise you on the issues of maintaining entrepreneurial activity, the activities of the self-employed or the need to transform the form of doing business.
- Prepare a package of documents related to the transfer of entrepreneurial activity to a legal entity.
- Advise on the payment of mandatory contributions to the Social Protection Fund.
- Develop a step-by-step algorithm of actions for transferring entrepreneurial activity into the company’s activities.
- Deal with accounting and tax issues of the transition period.
- Organize interaction with registration authorities and other government agencies on the transition from an individual entrepreneur’s activities to a company’s activities.
- Represent your interests in government agencies on issues related to business activities.
Contact us
If you have any questions about changes in the requirements for conducting individual business activities, we will be happy to help you! Our long-term experience in the field of corporate law will help you in resolving any disputes.
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
