Innovations in the legal regulation of entrepreneurial activity

On April 22, 2024, the Law “On Amendments to Laws on Entrepreneurial Activity” was adopted in the Republic of Belarus, which amended a number of legal acts.

Below are the commentaries on the most relevant changes.

• From the effective date of the amendments, individual entrepreneurs will be entitled to carry out only the types of activities that are included in the list to be approved by the Government by July 1, 2024.

Those entrepreneurs who were registered before October 1, 2024 will be entitled to carry out activities not included in the list until December 31, 2025. Should the individual entrepreneur's type of activity not be included in the list, from December 31, 2025, they will not be allowed to continue their activities in the IE format, and will have to establish a legal entity. At the same time, a legal entity can be established within just 1 day.

• If the IE's type of activity was subject to licensing, then after the establishment of a legal entity it has the right to carry out such activity on the basis of an IE license, provided that the license requirements are met. Thus, if the type of activity to be licensed requires the presence in the staff of a certain number of persons who meet special requirements, the fulfillment of such conditions must be ensured.
• The amendments provide for the creation of a register of small and medium-sized business entities, which will include:

     - Individuals engaged in individual entrepreneurial activity;

     - small business entities – business entities registered in the Republic of Belarus with an average number of employees per calendar year up to and including 100 persons.

The procedure for forming and maintaining the register will be determined by the Government and administered by the Ministry of Taxes and Duties.

• The law approves the Regulation on the establishment of a business entity founded by an individual entrepreneur, which regulates in sufficient detail the procedure for such establishment, the issues of transfer of rights from IE to the established entity of the property and proprietary rights, obligations, employment of IE's employees, etc.

Residential premises may be the registered office of a legal entity. In order for immovable property to be transferred from an individual entrepreneur to a business entity, neither the entrepreneur nor the business entity will need to take any additional actions and make any payments.

• The amendments provide for a reduction in the amount of administrative liability of small business entities.

Thus, the amount of a fine imposed on a legal entity included in the Register of small and medium-sized business entities with an average number of employees up to 50 persons is determined in accordance with the sanction provided for an individual entrepreneur, and if an individual entrepreneur is not specified in the sanction – in accordance with the sanction provided for a legal entity, reduced by half.