In accordance with the legislation of the Republic of Belarus, the Executive body of a legal entity may be a director (individual) or a management organization (legal entity).
Spex Advisers LLC provides professional services for the management of its clients’ legal entities established and operating in Belarus.
Why management services are beneficial versus hiring a director
Company management services are similar to the services of nominee directors or managers, which are widely known and popular in countries such as Cyprus, Estonia and many offshore jurisdictions. However, due to the strict regulation of the actions of the executive bodies of private companies in the Republic of Belarus by the legislator, it becomes impossible to create services and services of nominal managers in the form in which our foreign clients are used to seeing them. Therefore, the managing organization provides real and identical services and bears the same responsibility as the director (individual) of the company to the state regulator.
But there are a number of advantages of using such services, rather than a director to manage a legal entity in the Republic of Belarus. This is also due to the fact that even if a foreign founder of a company wants to be its director, he must first establish a company, then obtain a work permit, the term for obtaining which is usually from 20 to 30 working days, but in accordance with the laws of the Republic of Belarus, only an incorporated company must have an executive body from the first day of its establishment, thus it is impossible for a foreign founder to become a director of his company from the first day of its establishment.
Advantages of the services of a management company in Belarus
You do not need to look for a local director for the period of obtaining a work permit (if the director is a foreign citizen).
Do not forget that the director has the right to fully and solely dispose of the property and capital of your company, of course, if he (the director) makes decisions outside the law or is a swindler, then you can go to court, but the question is, do you need to lose money? this is its time and effort. Using the services of a management company, you can use it for the period of obtaining a special work permit or from the moment the company was founded and for the period that you need.
Termination of an employment contract with a director (natural person) is often long-term and also involves some risks.
For example, if your director is not the most honest person, then the employer may suffer the risks of paying additional benefits and compensations that were not agreed with the candidate in advance or were not included in the employment contract with the director. A service agreement is concluded with the managing organization, in which everything can be foreseen in advance.
The management relationship with the management company is governed by a civil law contract.
Therefore, if the Client wishes, it can be easily terminated and be held liable only in relation to the clauses and conditions specified in the management agreement.
Payroll to the director (individual).
Direct salary costs in the Republic of Belarus amount to about 50 percent over and above the amount payable to an employee “on hand”. Thus, you will have to pay more than half of your director’s salary as government taxes and other expenses (commissions and reimbursements to government funds). When you use a management organization, you simply transfer the agreed remuneration to the account of the management organization and that’s all, besides, if you use the general taxation system, then you can take this amount of remuneration into the costs of your company and not include this amount in the tax base.
The services of a management company in Belarus are a range of services that are provided by various professionals in their fields of activity, that is, this or that decision is not made individually (as in the case of a director), but collectively, including jointly developing a management strategy, interaction with government agencies and banks. Thus, the risk of making an incorrect managerial decision is reduced.
Management service cost
The cost of the services of the management company is often lower than the salary of the director (individual). In addition, the situation is very common in various areas of business, where interaction with such institutions as the National Bank of Belarus, customs authorities and executive committees is necessary, and it is often difficult or very expensive to find a director with competence in all areas, thus a management company is a more attractive solution. for a foreign founder.
If the foreign founder does not want, for his own reasons, to transfer executive powers to the management company, then we can use an individual approach in which the actual management will be carried out by our management organization, but full executive power will belong to the founding director of the legal entity.
Why clients choose us
- Experience in providing management services over 7 (seven) years;
- The only management company in Belarus with experience in managing 20 + IT projects and companies;
- Professional staff: professional accountants, auditors, lawyers, managers.
Spex Advisers LLC has been successfully managing the organization of such companies for a long time:
- representative offices of classic and corporate venture funds;
- software development companies;
- trading companies that import or export, as well as trade “ON BOND” (re-export of goods without physical import into the territory of the Republic of Belarus);
- about 30 percent of our clients are companies providing services in various fields from marketing to online services in the blockchain field;
How to reach us
If you want to use our services please contact us:
- + 375 29 366 44 77 (Telegram, WhatsApp, Viber)
- Email: email@example.com