Entering the Belarusian market has traditionally been associated with the need to establish your own legal entity, immerse yourself in local legislation, and build operational activities from scratch. However, in a context of rapidly changing regulations, increasing administrative burden, and companies’ need for flexibility, this approach is no longer always justified. Businesses require solutions that allow them to quickly hire specialists, optimize costs, and reduce legal risks, without lengthy bureaucracy and additional obligations.

The Employer of Record (EOR) model has become one such tool. It allows companies to hire employees in Belarus without opening a legal entity, delegating matters of HR management, taxes, contracts, and labor law compliance to a professional provider. As a result, companies gain the ability to test the market, scale projects, and rapidly expand teams, while retaining control over processes and minimizing expenses.

In this article, we explore why EOR is becoming a more efficient, safe, and economically advantageous solution compared to registering your own legal entity, and in which situations this model provides the greatest benefits for businesses.

What the EOR Model Is and How It Works

An Employer of Record (EOR) is a model in which a specialized company formally hires employees on behalf of your business and assumes all legal, HR, and tax obligations of an employer. At the same time, the specialists work on your projects, under your management, and according to your tasks, but are legally employed by the EOR provider.

This scheme allows companies to quickly enter the Belarusian market without creating a legal entity, without delving into local labor regulations, and without additional administrative costs.

What an EOR Provider Does

An EOR acts as the official employer and provides full-cycle employee management in Belarus. Specifically, the provider takes responsibility for:

• Drafting employment contracts and legalizing relationships in accordance with Belarusian law.
• Maintaining HR records, employment books, and personal files.
• Calculating and paying salaries, including taxes, contributions, and mandatory deductions.
• Preparing and submitting mandatory reports to government authorities.
• Ensuring compliance with labor legislation and monitoring employer risks.
• Closing employment relationships, including proper termination, calculating compensations, and meeting deadlines.

Meanwhile, the client company retains full control over employees’ tasks, engagement, KPIs, and operational activities.

How EOR Differs from Classic HR and Accounting Outsourcing

The Employer of Record model is not just a set of services. It is a redistribution of legal responsibility for employees. Key differences:

• In HR outsourcing, the provider assists with recruitment, documentation, or specific processes but does not become the employer. Responsibility for employees, risks of incorrect documentation, and obligations to government authorities remain with your company.
• In accounting outsourcing, the specialist maintains records and calculates salaries but does not bear employer responsibilities or protect the company from HR errors, fines, or claims.
• With EOR, the provider is formally the employer, fully assuming risks, obligations, and interactions with government authorities. Your company does not need to create a legal entity, register with authorities, prepare reports, or hire local specialists to maintain processes.

Thus, EOR is not an auxiliary service but a ready-made infrastructure for legally employing staff in Belarus without creating your own company.

Registering a Legal Entity in Belarus: Requirements, Timelines, and Risks

Establishing a legal entity in Belarus is the standard route for companies seeking a permanent market presence. However, for foreign businesses, this process is often more complex and costly than it appears at first glance. Beyond formal procedures, there are nuances that affect timelines, costs, and operational risks.

Main Steps of Company Formation

Registering a legal entity in Belarus involves several mandatory steps:

1. Choosing the organizational and legal form (most often an LLC).
2. Preparing founding documents: charter, participants’ resolutions, powers of attorney.
3. Forming the authorized capital, minimum amounts are small, but formal compliance is required.
4. Determining the legal address you cannot simply use a “virtual address” without verification; renting premises must be confirmed by a guarantee letter.
5. Submitting documents to the registering authority or notary and awaiting a decision.
6. Registering with tax authorities, the Social Protection Fund (FSZN), and Belgosstrakh.
7. Opening bank accounts—which may take from one day to several weeks for a foreign participant.
8. Hiring an accountant and HR specialist or contracting outsourcing services.
9. Preparing internal documentation: local regulations, job descriptions, payroll policies, etc.

Even under an ideal process, registration and company launch take 2–6 weeks, and in some cases, longer.

Mandatory Costs and Bureaucracy

Establishing and maintaining a legal entity involves mandatory expenses:

• Registration fees (state duty).
• Rent for the legal address.
• Services for preparing founding documents.
• Accounting services or salaries for in-house accountants.
• HR administration.
• Bank account maintenance.
• Costs for outsourced preparation of local reports (monthly, quarterly, annual).

Beyond direct costs, there is an ongoing administrative burden: reporting to tax authorities, FSZN, and statistics offices, checking counterparties, managing labor relations according to the Labor Code of Belarus, timely registration of contracts, and handling foreign currency operations.

Legal and Financial Responsibility of the Owner

By establishing a legal entity, a company assumes:

• Full responsibility for proper HR and accounting management.
• Responsibility toward tax authorities, including fines for late reporting.
• Risk of labor disputes, incorrect employee registration, delayed payments, mistakes in termination.
• Responsibility for violating currency regulations, especially for companies with foreign capital.
• Obligation to maintain documentation, ensure audits, and interact with government supervisory authorities.

For owners, this means either maintaining a competent team of local specialists or investing significant resources in outsourcing these processes.

Limitations and Nuances Often Unknown to Foreign Companies

There are several features that can come as a surprise to international businesses:

• Registration of a foreign participant requires additional checks, which may extend opening timelines.
• Not all banks open accounts quickly for non-residents, and some may refuse without explanation.
• Currency operations are controlled by the state, including registration of specific contracts and compliance with repatriation deadlines.
• Labor law regulations govern terminations and work schedules.
• Statistical reporting is mandatory even for inactive companies, with fines for non-compliance.
• Some types of activity require licenses and approvals, which increase the time to market.

As a result, a foreign company faces the reality that registering a legal entity is not just a legal formality but a complex project with ongoing operational obligations and significant risk.

Comparison of EOR and a Local Legal Entity: What the Business Gains

Choosing between an EOR model and registering your own legal entity affects not only the speed of market entry but also the cost structure, level of risks, and scale of operational workload. For companies aiming to operate in Belarus flexibly and without unnecessary bureaucracy, these differences become critically important.

1. Speed of Market Entry

EOR enables almost instantaneous start.

A company can hire employees within a few days: the provider is already registered, recognized by tax authorities, and ready to onboard specialists immediately after terms are agreed.

Opening a legal entity takes weeks or months.

Registration, banking procedures, preparation of local documentation, and organization of HR and accounting all these steps influence the timeline. As a result, the launch may take significantly longer than planned.

For companies that need to quickly test the market or expand a team, EOR provides a clear advantage.

2. Level of Administrative Burden

With EOR, the business is completely freed from bureaucracy.

The provider handles all HR records, payroll, taxes, reporting, compliance with legislation, and interactions with government authorities. The client focuses only on employee tasks and management.

With a legal entity, administrative burden is at its maximum.

You must maintain accounting, personnel records, reporting, internal documentation, interact with tax authorities and social funds, and monitor changes in legislation. This requires either a dedicated team of specialists or significant outsourcing expenses.

Effectively, EOR transforms employer obligations into a service, allowing the business not to spend resources on operational routines.

3. Tax and HR Risks

With EOR, the provider assumes responsibility.

They act as the formal employer, ensuring compliance with legislation, correct calculations, and proper documentation. The risks of fines, mistakes, late reporting, or violations of the Labor Code of Belarus fall on the EOR.

With a legal entity, all risks fall on the company.

Accounting errors, incorrect employee registration, delayed reports, or mistakes in termination even minor inaccuracies can lead to fines, audits, or labor disputes.

For international companies unfamiliar with Belarusian regulations, EOR effectively serves as a layer of protection.

4. Flexibility in Hiring and Ending Employment

EOR allows hiring employees for specific tasks, without long-term obligations, office infrastructure, or complex procedures.

Onboarding and offboarding follow provider standards, without the need to develop internal regulations.

A legal entity requires formal procedures.

Any staffing change, hiring, transfers, or terminations must comply with strict Labor Code norms. Additional documentation, notice periods, and compensation calculations all require expertise, and mistakes can result in disputes or fines.

EOR provides flexibility that is difficult to achieve through a company-owned structure.

5. Operational Costs (Direct and Hidden)

EOR is a transparent model.

The company pays a fixed fee for employee management, with no hidden costs or obligations. There are no expenses for accounting, HR staff, maintaining a legal entity, banking, reporting, or internal documentation.

A legal entity creates a chain of recurring costs that often make maintaining it economically unfeasible.

When EOR Is the Most Advantageous Solution

The Employer of Record model is particularly useful when a company wants to maintain flexibility, reduce risks, and avoid significant upfront investments. For many international businesses, EOR becomes the optimal way to enter the Belarusian market, enabling quick operational launch without unnecessary administrative obligations.

Market Testing Without Investment

If a company considers Belarus as a potential market but is unsure about work volumes, demand, or economic feasibility, opening a legal entity may be excessive.

EOR allows market testing without infrastructure investment:

• No need to register a legal entity.
• No requirement to hire accountants, HR specialists, or lawyers.
• No long-term legal obligations.
• Costs are fully transparent and predictable.

The company can hire one or several specialists, test hypotheses, or pilot a product/service, and then decide whether to open an office.

Hiring 1–10 Specialists

For small teams, registering a legal entity is often economically inefficient. Ongoing expenses for accounting, reporting, HR administration, banking, and other administrative tasks exceed the cost of managing employees through EOR.

For companies needing 1–10 employees, EOR is optimal, allowing them to:

• Pay only for actual employee management.
• Avoid fixed overheads.
• Skip internal bureaucracy.
• Quickly scale or downsize teams.

This model is ideal for software development, marketing tasks, research functions, sales, and other areas where speed and flexibility are critical.

Short-term Projects or Project-based Teams

For work in Belarus tied to specific projects, such as product development, support expansion, or market research companies often need a team for a limited period.

EOR allows hiring employees exactly for the project duration, without the need to:

• Develop internal procedures.
• Maintain HR records.
• Open or close a legal entity.
• Create long-term obligations.

After the project ends, collaboration can conclude without administrative or legal complications, making this model especially attractive for IT companies, agencies, research groups, and outsourcing teams.

Lack of Local Expertise in Belarusian Legislation

Belarusian labor and tax legislation contains numerous specific requirements, nuances, and frequent updates. Foreign companies attempting to handle compliance independently often face errors, fines, and reporting risks.

EOR fully addresses this issue:

• The provider assumes legal and tax responsibility.
• Ensures proper onboarding and termination procedures.
• Monitors legislative compliance.
• Interacts with government authorities.
• Minimizes labor and tax violation risks.

The model is ideal for companies without local specialists and those not planning to delve into Belarusian legal details.

Advantages of EOR for International Companies

Operating in multiple jurisdictions always brings additional risks, fragmented processes, and the need to adapt to local requirements. EOR standardizes operations and reduces administrative burdens while ensuring full compliance with local laws. This is why EOR becomes a key tool for global companies entering the Belarusian market.

Centralized Control and Standardized Processes

When working through separate legal entities in different countries, companies often face:

• Different hiring processes.
• HR documents prepared differently.
• Reporting submitted in various formats.
• Varying employer requirements.

EOR provides a unified standard for managing employees across all company locations, meaning:

• Standardized hiring approach.
• Uniform contracts and procedures.
• Consistent payroll rules.
• Centralized communication through a single provider.

The result: less managerial burden and greater transparency for leadership.

Reducing Risks of Non-compliance with Labor Laws

Understanding Belarusian legislation nuances can be challenging for international businesses. Even small errors in HR documentation, leave processing, payroll, or terminations can lead to fines or disputes.

Working through EOR ensures:

• Full compliance with local laws.
• Correct employee onboarding.
• Timely reporting.
• Accurate payments and deductions.
• Direct updates on legislative changes from the provider.

EOR acts as a protective barrier, reducing legal risks for the client.

No Need for Local Reporting

A key advantage of EOR is the elimination of obligations for:

• Accounting and bookkeeping.
• Tax declaration preparation.
• Social fund and statistical reporting.
• Interaction with tax audits.
• Maintaining accounting records.

All these processes are the responsibility of the EOR provider, which is especially valuable for international companies seeking to minimize local legal obligations.

The business focuses on operational activities while the administrative foundation is fully delegated to the provider.

Ability to Quickly Scale the Team

When expanding a team or entering a new region, companies working through a legal entity must:

• Adjust staffing plans.
• Draft new employment contracts.
• Set up new accounting processes.
• Expand internal HR and accounting teams.

With EOR, scaling takes just days. The provider can:

• Rapidly onboard new employees.
• Handle all HR and tax procedures.
• Provide transparent hiring conditions.
• Support both small teams and large distributed projects.

This enables international companies to respond flexibly to project changes, new opportunities, and increased demand without bureaucratic delays.

Conclusion

EOR is becoming the most practical and secure way for international companies to enter the Belarusian market. It allows legal and efficient operations without lengthy legal entity registration procedures, reduces operational and legal risks, provides hiring flexibility, and frees businesses from navigating local legislation complexities.

Compared to establishing a legal entity, EOR offers tangible advantages: fast launch, absence of bureaucracy, minimal management costs, and easy team scaling according to project needs. This approach is especially valuable for market testing, small teams, or companies not planning long-term financial and administrative commitments in Belarus.

Our team is ready to support your entry into the Belarusian market as quickly and safely as possible. We handle employee onboarding, interaction with government authorities, tax and HR support while you focus on product development and operational tasks. If you are considering working in Belarus or want to optimize your current hiring structure, we can provide a tailored solution for your business.

A well-chosen market entry model is not only a time and cost saver but also a strategic advantage. EOR provides the flexibility and protection that are critically important for sustainable growth today.

How to contact us 

For more information or consultation on EOR services in Belarus, do not hesitate to contact us. We are here to help and support you.

Phone and email communication options are available for your convenience:

• +375293664477 (WhatsApp/Telegram/Viber);
• info@spex.by.