Commentary to Ordinance No. 2 of 28 February 2017
The procedures for business startup and shutdown in
Belarus have been improved. This is envisaged in Ordinance No. 2 of 28 February
2017 which introduces amendments to Ordinance No. 1 of 16 January 2009
“Concerning the state registration and liquidation (cessation) of business
In order to reduce the number
of administrative procedures and facilitate entrepreneurship activities, the
ordinance provides for the possibility to open an operating account in a bank
simultaneously with the registration of a business entity.
To improve the investment climate and abolish excessive
restrictions on the participation of legal entities and individuals in the
establishment of new business ventures, the ordinance lifts the restriction on
the establishment of an affiliated enterprise in cases when its founder has any
The approach to the
invalidation of the state registration of business entities in cases when they
provide false information to the registration body has been changed. When trying
such cases, the courts will take into consideration the nature of violations,
potential damage, and other significant circumstances.
Registration bodies have been authorized to close down a
business entity which has been inactive for 24 months in a row. As of today,
such a decision can be made if an enterprise stays inactive for 12 months in a
row and does not inform corresponding bodies about the reasons for such
The ordinance also envisages
that tax bodies or other authorized agencies can file a legal claim regarding
the invalidation of the state registration of a business entity, its shutdown
(cessation) within three years. Business entities can complain against the
activities (inactivity) of registration bodies within three years.
In accordance with the provisions of the
ordinance, a business entity willing to close down can sign an agreement on the
provision of audit services to make sure that all statutory payments to the
budget are calculated correctly and made in time and in full. Using the
auditor’s report, tax and customs bodies, the Belarusian insurance company
Belgosstrakh will be able to provide all necessary information about the closing
down of a business entity to the registration body without additional
The ordinance also enables
business entities to submit documents about their shutdown (cessation) in the
electronic form and provides for the mechanism to terminate the operation of
self-employed businessmen for the period of their regular or alternative
military service, imprisonment.
exception of a number of provisions, the ordinance will enter into force six
months after its official publication.