How to Compliantly Engage and Payroll Your Remote Workforce in Belarus
Among the many seismic shifts in global affairs brought on by the COVID pandemic, changes in the business landscape of many countries have made it necessary for international businesses to rethink their approach to global expansion. Belarus is ideally situated for many companies expanding in Europe, but recent changes to Belarusian business laws over the past few years can pose some unexpected challenges.
Learn how Acumen’s tailored service for engaging and payrolling your remote workforce compliantly in Belarus can facilitate your in-country business operations while keeping your company compliant with new Belarusian laws and regulations.
Laws and Regulations for Doing Business in Belarus
In the World Bank’s most recent Ease of Doing Business Index, Belarus is ranked 49th among 190 global economies for its business-friendly regulations. While ranking among the top 50 isn’t bad, there are still several hurdles for international businesses to overcome when before establishing a legal entity there.
To begin with, Belarusian law prohibits foreign entities from conducting business within the country without incorporating as an LLC, or setting up an in-country representative office. This creates certain challenges for:
- Businesses already operating in Belarus
- Businesses looking to enter the Belarusian market
- Businesses trying to enter the Belarusian market and seeking “to test the waters” before incorporating their own entities, or businesses wanting to withdraw from the market
- Registered companies that want to outsource their payroll while still remaining legally compliant with Belarusian laws and regulations.
Having to rethink your approach to doing business in Belarus can cause costly disruptions in your business operations. Therefore, for more and more companies the solutions allowing them to operate in Belarus without their own business entity setup are becoming crucial. Fortunately, Acumen International offers an alternative to own company formation to save you from non-compliance issues while you regroup.
Legal Options for Establishing a Business Entity in Belarus
Under Belarusian law, there are two options for foreign companies who want to establish a permanent business entity and directly engage employees in-country. You can opt to establish your own corporation, following all guidelines and regulations set forth by the Belarusian government, or you can establish a representative office in Belarus.
Establishing an In-Country Legal Entity
There are three options for international companies who want to incorporate in Belarus:
- Limited Liability Company. An LLC is the most common type of business entity established by global businesses in Belarus. There is no charter capital commitment, and company size may range from one participant up to 50.
- Unitary Enterprise. Although a unitary enterprise bears similarities to an LLC, its founder retains sole ownership of the company’s assets, and shared ownership is prohibited. The owner of a unitary entity can be a single individual, a married couple or a legal entity.
- Closed Joint Stock Company (JSC): In a JSC, the business is owned collectively by its shareholders, who can buy and sell shares. However, in a closed JSC, stocks cannot be freely sold to third parties without the consensus of other shareholders. The members of a joint stock company are held liable as partners
Forming a Representative Office
A representative office is not a legal entity, but rather a subdivision of a foreign company representing its business interests in Belarus. A representative office cannot legally conduct business in Belarus, but is allowed to conduct research on Belarus markets, explore business opportunities, and work toward establishing a legal entity in the country.
Solution from Acumen International to operate in Belarus without entity formation
Taking your company abroad is a savvy business move for companies that want to capitalize on the growing demand for innovative goods and services. Acumen International makes it easier than ever to conduct business abroad with our cutting-edge solutions. We provide reliable and effective services for engaging and payrolling your remote workforce in Belarus with 100% compliance.
The services we offer in 190 countries, including Belarus, help companies to operate on an international scale, free of risk of compliance violations. With Acumen, you can compliantly hire an international workforce without having to establish your own Belarussian business entity.
Acumen is a people-oriented business, geared to freeing companies like yours from the inconvenience and expense of establishing in-country business entities. Our tailored solution for engaging and legally compensating talent in Belarus makes Acumen the premier global partner of businesses expanding overseas. Our extensive knowledge and expertise in global hiring and payroll solutions have laid the groundwork for a sustainable international network of partners who can help you navigate local laws, to eliminate compliance risks.
We invite you to explore our new redesigned website, to learn more about the benefits of our solutions, and see how we can help in your specific case. Send us your project details and request your free quote.