When deciding between forming a Limited Liability Company (LLC) and a Private Unitary Enterprise (PUE), consider these key factors:

1. Ownership Structure: An LLC can have multiple founders, while a PUE typically has only one. Choose an LLC if you plan to involve multiple partners.
2. Liability: LLCs offer limited liability protection, meaning owners’ personal assets are generally safe from business debts. PUEs also shield founders from business liabilities but have different regulatory conditions.
3. Management Flexibility: LLCs offer flexibility in management and decision-making. PUEs, being a unitary enterprise, often have stricter operational requirements and oversight.
4. Regulatory Requirements: LLCs and PUEs are subject to different regulations. An LLC might be easier to manage if you prefer fewer regulatory hurdles, whereas a PUE might suit businesses needing specific legal structures.
5. Taxation: LLCs can benefit from various tax options and deductions, while PUEs follow different tax rules and may offer simpler taxation structures.
6. Purpose and Scope: If you need a more flexible structure for joint ventures and broader business activities, an LLC might be preferable. For a single-owner enterprise with specific operational goals, a PUE could be more appropriate.

Evaluate your business goals, ownership plans, and regulatory preferences to choose the best structure for your needs.

When opening a Private Unitary Enterprise (PUE), several additional expenses may arise beyond the standard registration fees:

1. Legal and Consulting Fees: You might need professional assistance for legal advice, document preparation, and consulting services to ensure compliance with regulations.
2. Notarization Costs: If certain documents require notarization, such as powers of attorney or resolutions, there will be associated fees.
3. Seal and Stamp: Obtaining a seal or stamp for your PUE can involve additional costs for design and production.
4. Bank Fees: Opening a bank account may include fees for account setup, transaction processing, and maintaining the account.
5. Tax Registration: Costs related to tax registration and consulting on the best taxation system for your PUE can add up.
6. Office Space: If your PUE requires a physical address, renting office space or other premises will be an ongoing expense.
7. Insurance: Depending on the nature of your business, you might need to purchase insurance, which adds to initial costs.
8. Regulatory Compliance: Compliance with industry-specific regulations or obtaining necessary licenses can incur additional expenses.

In Belarus, a legal entity is subject to several taxes, including:

1. Corporate Income Tax: Companies are taxed on their profits at a standard rate of 18%. This tax applies to the net income earned by the entity.
2. Value Added Tax (VAT): VAT is levied on the sale of goods, works, and services. The standard rate is 20%, though some goods and services may be taxed at a reduced rate of 10% or exempt.
3. Social Security Contributions: Employers are required to make contributions to the social security fund, which includes pension, health, and unemployment insurance. The rates vary based on the type of contribution and employee status.
4. Property Tax: This tax is levied on the ownership of property, including real estate and land. The rate depends on the location and type of property.
5. Land Tax: Companies owning land must pay land tax, which is based on the size and location of the land.
6. Environmental Tax: Businesses that impact the environment, such as through pollution or waste, may be subject to environmental taxes.
7. Excise Taxes: These are specific taxes on certain goods, such as alcohol, tobacco, and fuel, and vary based on the type of product.

Foreigners who open a business in Belarus benefit from a favorable business environment and various incentives. The country offers competitive tax rates, which can help reduce overall business costs. Additionally, Belarus has streamlined registration processes for foreign investors, making it easier and quicker to set up operations. Foreign businesses can also take advantage of special economic zones with tax breaks and other benefits. The strategic location of Belarus provides access to both European and Russian markets, offering expanded trade opportunities. Furthermore, Belarus is known for its skilled and cost-effective workforce, which can enhance business efficiency and profitability.

Yes, a foreign citizen can be a director of a legal entity in Belarus. They just need to meet the legal requirements and be appointed according to the company’s charter.

Yes, a foreigner can obtain a temporary residence permit in Belarus based on establishing a company or serving as a director. The permit is typically granted to those involved in business activities and meeting specific conditions set by immigration authorities.