The House of Representatives in Belarus adopted the bill “On Amending Laws on Entrepreneurial Activities”. If the document is approved by the Council of the Republic and signed by Lukashenka, many entrepreneurs will have to either re-register or cease operations.
Sviatlana Tsikhanouskaya’s Advisor on Economic Reforms, Aleś Alachnovič, emphasizes that the regime has been consistently worsening the environment for private businesses.
“The new rules significantly limit the types of activities through which people can earn a living through sole proprietorship. Those who do not fall into this list will have to re-register as legal entities by December 31, 2025, or cease operations from October 1, 2024.
The final list of permitted activities for sole proprietorships has not yet been determined. Earlier, it was reported that wholesale trade, tourist and legal services, organization and conduct of cultural and entertainment events, and some IT services will not be included in the list. Some estimates indicate that the number of sole proprietorships could almost halve, from 263 to 143 thousand. The Ministry of Economy expects a reduction of almost 50 thousand.
A sole proprietorship is the simplest way to start commercial activities. It does not require expenses for an office, accountant, or other staff. If a person succeeds in developing a business as a sole proprietorship, over time, they may re-register as a company, which has its advantages for larger businesses. For comparison, in Poland, 2.5 million people conduct business as sole proprietorships. Per capita, this is 2.5 times more than in Belarus.
Instead of creating incentives for businesses, the authorities have decided to resort to yet another prohibition”.
