2023-08-05 08:35:54
Zhdanovichi market in Minsk. Photo: TUT.BY
In Belarus, about 49,000 individual entrepreneurs may close or become legal entities if the authorities eventually approve the sensational bill. This forecast is made by the Ministry of Economy.
Recall that officials want to cut the list of activities for individual entrepreneurs and revise it for the self-employed. Entrepreneurs whose activities do not fall into the shortened list will be forced to either close or open a legal entity.
What is the essence of the changes that they want to introduce
Officials intend to cut the list of activities for individual entrepreneurs and revise it for the self-employed. Entrepreneurs whose activities do not fall into the shortened list will be forced to either close or open a legal entity. Previously, a project appeared with a list of activities that are expected to be able to continue to be engaged in IP. It did not include, for example, wholesale trade, tourism services and many others. Later, officials promised to revise this list again.
It was previously planned that changes for IP would be introduced from July 1 this year, but the document was “stuck” in parliament. Although the deputies criticized the bill, they adopted it in the first reading. Now it is being prepared for the second reading.
How many IPs can close due to changes
The sensational bill on individual entrepreneurs was discussed the day before at the site of the business union of entrepreneurs and employers. Kunyavsky (BSPN). Director of the Department for Entrepreneurship of the Ministry of Economy Olga Rusinovich made a forecast that due to possible changes, 49 thousand individual entrepreneurs will be forced to close their business or re-register as a legal entity. Previously, a figure of 100 thousand individual entrepreneurs was called, they specify in the BSPN.
Olga Rusinovich confirmed the information that individual entrepreneurs whose activities do not fall into the permitted list will have a 2-year period during which they will be able to continue the business. Next, you will have to make a choice: stop working or create a legal entity. In the second case, they will offer a simplified procedure for re-registration, which will ensure the transfer of all rights and obligations from an individual entrepreneur to a legal entity. This should help maintain contractual relationships with existing counterparties. Among the options is the ability to register a company at the place of residence or registration without changing the cost of utilities paid by the owner of the dwelling.
According to Olga Rusinovich, benefits and preferences for micro-organizations will be extended to small enterprises with up to 50 employees. Legislative reform will require amendments to approximately 1,400 normative legal acts.
The Ministry of Economy hopes that a reduction in the administrative burden, along with the ability to apply a simplified taxation system, will contribute to business scaling, individual entrepreneurs will be more willing to create firms, and legal entities will increase staff.
The draft law reportedly expands state financial support. They want to extend it to medium-sized businesses and provide it on an irrevocable basis in the form of grants.
According to Olga Rusinovich, one of the objectives of possible changes is to create a uniform competitive environment. To do this, self-employed people, artisans and farmsteads are classified as business entities, and the requirements for them (sanitary, fire safety standards, obligations to consumers) are equalized with the requirements for legal entities. Craftsmen will be allowed a very limited range of activities related to original national traditions and based on manual labor.
“The growth of living space for legal entities is also associated with the restriction of the activities of individual entrepreneurs, however, not as radical as it was assumed at an early stage of the discussion,” the BSPN specifies.
The business union also reports that it is planned to create a register of small and medium-sized businesses, designed to systematize support for this category of business. “The register will be formed on the basis of data on the number of employees in tax returns, which will not lead to an increase in the administrative burden on business,” the BSPN notes.
It is expected that the bill will be considered in Parliament in September in the second reading.
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