Belarus is the best place for your investment
while it offers:
1. Srategically advantageous locationPlacing a business in the territory of Belarus enables companies to efficiently serve the most high-capacity and quick-growing target markets: EU countries (508.2 million consumers), Russia, Ukraine, Kazakhstan and other CIS countries (282 million consumers).
The advantageous economic and geographical location of Belarus, developed transportation and logistics and manufacturing system of the country is accompanied by its membership in integration associations. In the first place, the Eurasian Economic Union of Belarus, Russia, Armenia, Kazakhstan and Kyrgyzstan (EEU).
All of these factors provide unique opportunities for companies interested in establishing and dynamically developing business in the Eurasian region.
2. Direct access to the market of EEU countries (Belarus, Russia, Kazakhstan, Armenia and Kyrgyzstan)
Today companies investing in Belarus automatically enter the market of EEU countries.
The EEU is
- Free movement of goods, services, capital, workforce;
- A common customs territory of Belarus, Russia, Kazakhstan, Armenia and Kyrgyzstan with a single customs tariff;
- Equal business conditions (including the costs of the principal energy resources);
- Single rules of technical regulation, single sanitary, veterinary, and phytosanitary norms;
- Exemption of process equipment, raw materials imported to implement investment projects from import customs duties.
3. Competitive investment and taxation conditions
In Belarus there are a number of preferential regimes which could be of use for foreign companies, including from the point of view of their taxation planning and optimisation. They include special beneficial business conditions in the case of organising business within six free economic areas (0% profit tax for 5 years; 10% VAT), High-Tech Park (0% profit tax for 15 years; 0% VAT), and the Industrial Park “Great Stone” (0% profit tax for 10 years). Foreign companies can also derive additional profit by the maximum decrease of investment expenses and taxation burden while placing their businesses in the territory of small and medium towns of Belarus (0% profit tax for 7 years, 0% VAT for 5 years).
Belarus strives to create open and favourable conditions for business in its territory. Today the country is the leader in legislation improvement which is confirmed by the World Bank's Doing Business 2016 research.
In 2015, Belarus rose by 13 positions in the ranking of the business environment and thus bypassed Russia and Ukraine, taking 44th place out of 189 countries. This is one of the most powerful positions in the CIS.
Belarus showed its significant improvement in terms of business registration, rose by 28 points and occupied 12th place in the ranking on this position. Belarus also improved its positions in terms of the following indicators: dealing with construction permits (17 points), getting electricity (59), protecting minority investors (37), trading across borders (120 points).
The progress of Belarus in the field of labor relations was also stated in the World Bank Report. For example, amendments were introduced to the Labor Code of the Republic of Belarus in the regulation of wages, labor arbitration, and calculation of overtime pay.
In the Doing Business Rating Belarus took the leading among the EAEU countries 25th position in trading across borders index, rose by 120 points, leaving far behind Russia (170th position), Kazakhstan (122), Kyrgyzstan (83) and Armenia (29).
4. Developed transportation and logistics infrastructure
Due to its geo-economic location, Belarus is a transportation and logistics hub of Eurasia.
The transportation infrastructure of Belarus is represented by a broad network of motorways, railways, airlines. The thoroughfares crossing the country are the most important component of the European transportation system. Thus, Belarus is crossed by 2 cross-European transportation corridors, according to the international classification No. II (West-East – Berlin-Warsaw-Minsk-Moscow) and No. IX (North-South – Russian-Finnish border-Vyborg-St. Petersburg-Vitebsk-Gomel-Ukraine-Moldova-Bulgaria-Greece) with branch IXB – Gomel-Minsk-Vilnius-Klaipeda-Kaliningrad.
Annually over 100 million tonnes of European cargo cross Belarus's territory, 90% of which cargo is between Russia and the EU. At the same time, the transit potential of Belarus has not been exhausted – the Belarusian transportation corridors are used for 25-40% maximum of their real traffic capacity.
Thus, Belarus is the optimal link between the CIS countries (Russia in the first place) and the EU countries, which could be advantageously used by foreign countries by locating their manufacturing, logistics, and sale units in the country's territory.
5. Unique privatization opportunities
Belarus provides foreign companies with unique opportunities of speedy development of their business related to stepping up the privatization process in the country.
Today around 70% of industrial production falls within the governmental sector in the country. Unlike Russia, other CIS and Eastern Europe countries, Belarus has preserved the largest national companies in state ownership, which has enabled to ensure their full-scale support and, as a result, to increase their manufacturing potential and international competitiveness significantly.
At present, to further increase the efficiency of the national economy, Belarus is interested in developing mutually beneficial co-operation with big strategic investors, having selected the tactics of step-by-step privatization. The examples of successful privatization deals of the recent years (sale of governmental shares in Beltransgaz OJSC, Mobile Digital Network JV etc.) have entered the list of the largest M&A deals in Europe.
Today the National Agency of Investment and Privatization, jointly with the World Bank, introduces modern approaches and instruments corresponding to the advanced international practice. They are aimed at establishing more open privatization conditions understandable to foreign countries in Belarus.
6. Highly qualified workforce
Belarus is the country of one of the most educated, highly qualified, and industrious peoples. Over 90% of the population have higher, secondary or basic education. A well-developed system of professional training as well as a high level of the industry and services development enable the Belarusian workforce work successfully in companies of any industries, be it sewing, agriculture, biotechnologies or software development.
7. Decent living standards
In the rating of countries by Human development index (HDI) published by the UN in 2015, Belarus occupied the well-deserved 50th place (among 188) and became the renowned leader among all the CIS countries. The living, dwelling costs, the costs of education and various cultural events are lower than in the majority of Western and Eastern European countries. Along with the developed social infrastructure, Belarus has managed to preserve unique eco-environment for a full and varied people’s life. In 2016, Belarus ranks 35th on the effectiveness of the measures aimed at protection and conservation of natural ecosystems and human health among 180 countries in Environmental Performance Index Ranking, which is annually published by Yale and Columbia Universities (USA) in collaboration with the World Economic Forum. This is one of the highest rates among the CIS countries. Experts stressed the high position of Belarus in categories such as the quality of drinking water, health protection and access to electricity.