ABOUT BELARUS

Amongst all the countries in Eastern Europe, Belarus, officially the Republic of Belarus, is a landlocked country known for its vast forests, pristine lakes, and a strong industrial base inherited from the Soviet era. It is strategically located at the crossroads of major trade routes between Europe and Russia. The capital of Belarus is Minsk, which is its largest and most populous city, serving as the country’s main economic, political, and cultural hub. According to the World Bank, Belarus is classified as an Upper Middle-Income Economy, with a significant state-owned sector. The currency of Belarus is the Belarusian Ruble (BYN), and the value of 1 Indian Rupee is approximately 0.0381 Belarusian Ruble (or 1 BYN is approximately 26.20 INR) as of today’s exchange rates (June 2025). The population of Belarus is estimated to be around 9.1 million in 2024. Its neighbouring countries are Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. The official languages of the country are Belarusian and Russian. The majority of the Belarusian population practices Eastern Orthodox Christianity, with smaller communities of Roman Catholics and other faiths. Currently, Belarus has several international airports, with Minsk National Airport (MSQ) being the primary international gateway. As a landlocked country, Belarus relies on the seaports of neighbouring countries, primarily in Russia (like those on the Baltic Sea) and the Baltic states (though transit through Lithuania has been impacted by sanctions), for its international maritime trade, with goods transported mostly by rail and road.

The corporate income tax rate in Belarus is generally 20%. However, Belarus offers various tax incentives and preferential regimes, particularly within its Free Economic Zones (FEZs), High Technology Park (HTP), and industrial parks. These zones can offer significant tax exemptions (e.g., 0% profit tax for a certain period, reduced VAT) to attract foreign investment in specific priority sectors. It is important to note that international sanctions imposed on Belarus can affect financial transactions and business operations, requiring careful due diligence. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Belarus has to be done with utmost care, keeping in mind the laws of the country and the current geopolitical situation. The National Agency of Investment and Privatization (NAIP) is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Belarus can form various company types, such as a Limited Liability Company (LLC), a Joint Stock Company (JSC – Open or Closed), or a Representative Office. A Limited Liability Company (LLC) is a popular choice for foreign investors due to its flexibility and generally allows 100% foreign ownership.

In case an investor is planning to establish an LLC in Belarus or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Belarus and we will also guide you about how to follow the procedure while formulating your company in Belarus.

Types of Business which can be started in Belarus:

• IT & High-Tech: Belarus has a well-developed IT sector, particularly known for software development and cybersecurity, largely driven by its High Technology Park (HTP) which offers significant tax benefits. Opportunities exist in software development, AI, fintech, game development, and IT outsourcing, though geopolitical factors need careful consideration.
• Manufacturing: Belarus has a strong industrial base, especially in heavy machinery, agricultural equipment (tractors), trucks, and automotive components. Opportunities exist in modernizing existing production, establishing new manufacturing facilities (e.g., in industrial parks), and producing goods for the Eurasian Economic Union (EAEU) market.
• Agriculture & Food Processing: With vast agricultural land, Belarus is a major producer of dairy, meat, potatoes, and grains. Opportunities exist in modernizing agricultural production, agro-processing for value-added products (e.g., dairy, meat products, processed foods), and expanding exports, particularly to non-sanctioning markets.
• Logistics & Transportation: Belarus’s strategic location between the EU and the EAEU makes it a crucial transit hub. Opportunities lie in developing logistics centers, warehousing, multimodal transport solutions, and freight forwarding, leveraging its extensive rail and road networks.
• Chemical & Petrochemical Industry: Belarus produces fertilizers (potash), chemicals, and petroleum products. Opportunities exist in enhancing production efficiency, developing new chemical products, and increasing value-added processing, especially within specialized economic zones.
• Forestry & Wood Processing: With significant forest resources, opportunities exist in sustainable forestry management, wood processing (lumber, furniture, paper), and biomass energy production.
• Pharmaceuticals: Opportunities exist in the manufacturing and distribution of pharmaceutical products, leveraging a skilled workforce and potential for regional market access.

Advantages of Starting Business in Belarus:

• Strategic Geographic Location: Positioned as a gateway between the EU and the EAEU (Russia, Kazakhstan, Armenia, Kyrgyzstan), offering access to large markets.
• Skilled Workforce: A highly educated and technically proficient workforce, particularly in engineering and IT, at competitive labor costs.
• Developed Industrial Base: Possesses a strong existing industrial and manufacturing infrastructure.
• Eurasian Economic Union (EAEU) Membership: Provides duty-free access to a common market of over 180 million consumers.
• Preferential Investment Regimes: Free Economic Zones (FEZs) and High Technology Park (HTP) offer significant tax and customs benefits for resident companies.
• Government Support: The government actively promotes foreign investment in priority sectors through various incentives.

Business Opportunities for Indians in Belarus:

There are business opportunities in Belarus for Indian investors, particularly in sectors where India has a strong presence and where the impact of Western sanctions might be less direct or opportunities for collaboration with Russian and CIS partners exist. Indian investors, with their strengths in pharmaceuticals, IT (especially for non-Western markets), heavy machinery, agriculture and food processing, and certain manufacturing sectors, can explore avenues. Belarus’s focus on diversifying its trade away from Western markets could open doors for Indian companies in these areas.

Imports & Exports:

Many goods are imported and exported from Belarus. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Belarus to India:

• Potassium chloride (Potash fertilizer, a major export)
• Parts and accessories of motor vehicles
• Synthetic fibres
• Optical, photographic, and medical instruments
• Plastics and articles thereof
• Flax and flax products
• Ball or roller bearings

Major items which are imported in Belarus from India:

• Pharmaceutical products
• Rice and other cereals
• Machinery and mechanical appliances
• Fish, crustaceans, molluscs
• Tanning or dyeing extracts
• Articles of iron or steel
• Pesticides and insecticides

Manufacturing:

Opportunities in manufacturing are significant, especially in sectors like agricultural machinery (e.g., tractors), trucks, and automotive components. There’s also potential in areas such as food processing, chemicals (including fertilizers), and light industries, leveraging the existing industrial base and access to the EAEU market.

Mining:

The mining sector in Belarus is dominated by the extraction of potash salts, which are crucial for fertilizer production. Other minerals include rock salt, dolomite, and peat. Opportunities primarily exist in optimizing extraction methods for potash and exploring for other industrial minerals.

Major Indian companies which are currently working in Belarus:

While the direct presence of large Indian corporations for manufacturing might be limited due to the geopolitical climate and sanctions, there have been collaborations and trade relationships:

• Bharat Heavy Electricals Limited (BHEL): Has been involved in projects related to power plant reconstruction in Belarus.

• Pharmaceutical Companies: Several Indian pharmaceutical companies maintain a significant market presence through the import and distribution of medicines.

• Trade Relations: Various Indian companies are active in bilateral trade, particularly in the import of potash and export of pharmaceuticals and agricultural products.

• BelAZ (Belarusian Autoworks): While not Indian, it’s worth noting its presence as a major Belarusian manufacturer of dump trucks, which are significant for mining industries globally, including potentially in India.

• GDP = $75.3 billion (2024 est.)

• GDP Growth = 4.0% (2024 est.)

• Ease of doing business rank = 37 (2020 – Note: The World Bank discontinued this report; this is the last available ranking.)

• GDP per Capita = $8,250 (2024 est.)

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