Financial institutions

A Belarusian company can use support in the form of an export loan to increase attractiveness of its goods in foreign markets. The exporter receives the value of the goods immediately after delivery, and the foreign purchaser will pay this value to their bank for several months.

Such scheme reduces the risks of Belarusian companies associated with non-receiving of payment and forced debt collection.

If the cost of loans in Belarusian banks leaves much to be desired, there are always possibilities to consider alternative methods of raising loan funds. They include direct loans of foreign banks and international financial organizations, issuing bonds in Belarus and abroad, attracting a foreign investor as one of the members (shareholders) of a Belarusian company, etc.

Only experts who have participated in similar projects can assess advantages and disadvantages of each of these variants.

First impression of the counterparty can be deceptive, particularly when it comes to significant financial risks. Verification of information on the counterparty, which experts will receive both from reliable government sources and through their contacts, will help reduce the probability of non-performance of obligations, litigation, claims from government bodies.

Even if negotiations participants have worked in the same field for a long time, it does not guarantee successful negotiations. Sometimes, a third-party assistant in negotiations can see the obstacles to prompt achievement of positive results, such as conclusion of a contract, receiving a delay in payments, reduction of penalties, etc.

One of the requirements of foreign credit and financial organizations is obtaining an independent legal opinion of the fact that the deal to be concluded with a Belarusian company does not contradict the local law requirements.

Apart from the formal part, obtaining such opinion allows the parties to ensure that all mandatory requirements (currency regulation, antitrust laws, etc.) have been observed and will not entail negative consequences (damage to goodwill, penalties) for the business.

To perform business activities, first of all, it is required to obtain the status of a company, i.e., to register a legal entity. The registration process starts with analysis of the company incorporation objectives (commercial or social), composition of its members (one, two or several dozens), as well as other legal and business factors.

As a result of such analysis, we will propose the optimal form of performance of activities (out of more than ten forms possible in Belarus) and the taxation system type.

As our experience shows, prior to registration of their subsidiaries in Belarus, major businesses study the possibilities of doing business in Belarus by opening a representative office of the foreign company.

Such representative offices are suit perfectly for studying the markets of the Republic of Belarus, opportunities for investment, sales of tickets and reservations for air, rail road and sea transportation companies. An undoubted advantage is full control of the parent company over the activities of its representative office, as well as the absence of the need to obtain any work permits for the head of the representative office. 

One of the key conditions of successful operation of the company is correct distribution of competences between its management bodies.

Thus, owners must focus on the company’s future, the board of directors must reasonably approve or reject decisions on acquiring new businesses and entering new markets, and the board or the director must ensure achievement of the goals set and coordinated performance of work by all employees.

Exactly such correct setting of the corporate governance is also the key to higher attractiveness of enterprises for investors.

When buying a company in Belarus (shares, parts or a unitary enterprise), the new member (owner) wants to make sure there are no material risks affecting performance of business. Such risks can be assessed by analyzing the documents and activities of the facility, namely: verifying the commercial structure, specifics of the counterparty company transactions, license and IP, movable and real estate property, information on taxation and finance, availability of obligations and debts.     

We consult both the seller and the purchaser. In each situation, we know what it all actually depends on in the course of preparing, interpreting and judicial review of legally relevant documentation.

The commercial secret protection secret and the non-disclosure agreement are the two key documents that establish how your know-how, products, competence and reputation is protected. These local acts do not replace technical protection means (e.g., DLP systems), but establish the procedure and regulations of access to the information that brings you profits.

We recommend regulating these issues in parallel with recruiting first employees.

Doing business often requires involvement of foreign top managers and single-skilled experts.

The lawyer’s task is to perform all procedures stipulated by the law, which include the following: timely registration of a foreign employee, obtaining a temporary residence permit, in some cases, obtaining a special permit for an employee including special requirements for employment contracts with foreigners, as well as non-standard duties of the employee, corporate policies on certain issues, increased responsibility in respect of trade secrets, etc.

Employment agreements (contracts), contracts for full individual liability, contracts for training, orders, job descriptions are examples of binding legal formalities in Belarus. You can instruct a lawyer to verify these basic business documents or draft them from scratch with periodical updating of the templates created. 

In addition, there are both mandatory forms of local normative legal acts (internal labor regulations, occupational safety provisions, military registration provisions, etc.), as well as the forms that allow the employer to regulate certain personnel issues (provisions on remuneration of labor and bonuses, provisions on material aid, etc.).

Based on personnel documentation for a particular employee, employer’s local acts that define working conditions, lawyers will prepare options for actions and relevant draft documents (orders, agreements on termination, etc.) and will take part in discussing the selected dismissal variant between the employer and the employee.

It is all done for the parties to receive complete and objective view of the legal consequences.

The need for an independent personnel audit may arise on various grounds: buying and selling a business, identifying violations as a result of state inspection or as part of the company’s audit, identifying gaps in documenting individual personnel issues in case of a conflict between the employer and the employee, restoring order regarding changes in labor laws.

We are ready to analyze the required scope of issues with subsequent provisioning of a list of existing risks and recommendations for their elimination.

If a trademark, invention, utility model has been developed by you, then registration or obtaining a patent is required to protect the result of your work, as a rule. Such registration can be national or international. It can be obtained for various commodity headings.

Lawyers will help determine the very possibility of registering and protecting your intellectual property rights, will select the territory and the procedures required for it. We will perform the check for availability of similar objects that prevent protection of your intellectual property rights jointly with patent attorneys . As a result, you will receive a registration certificate or other right-setting document to protect your intellectual property rights in the corresponding jurisdiction.

If it is necessary to re-register the intellectual property rights to third parties, we will prepare an assignment agreement or another suitable contract and support passing the required registration procedures.

Competition is not always fair. Your success makes yout competitors sleepless and they may improperly use your trademarks, technologies, appearance of goods, production secrets and other intellectual property to gain a market advantage. We are ready to ensure comprehensive protection of your business against such attacks.

Firstly, each separate intellectual property object can be protected in accordance with the judicial, administrative and criminal litigation procedure. For example, unlawful use of a trademark makes the right holder entitled to demand a compensation from the violator in the amount of up to 50.000 basic values (about EUR 118,000) without having to prove the damage amount. You can prohibit the offender to perform specific actions in court, for example, advertising and offering a particular product for sale, to remove a counterfeit product (goods made with violations of your intellectual property rights) from sale.

Secondly, all actions of the violator in the aggregate may constitute unfair competition. Judicial bodies and the MART (Ministry of Antitrust Regulation and Trade) deal with unfair competition cases. We support our clients at all stages of such cases, up to forced execution of court statements.

Each company deals with processing of personal data, i.e., the data of its employees, customers and potential counterparties, casual contacts in forums and business meetings. Every year, the legislator for a stricter procedure for collecting, storing and processing of personal data. This issue is particularly relevant for the companies that exchange such data with their parent or subsidiary structures (for example, have centralized storage of data on all employees of a group of companies), or conduct business using the Internet (for example, using servers located outside Belarus), make mailings in the contacts database formed by them.

A separate group of issues is related to introduction of the GDPR starting from May 2018, which establishes special requirements and responsibilities when processing personal data of the EU citizens. Many Belarusian organizations that are subcontractors in the processing such data or directly perform business in the EU have already faced the need to develop a set of protective measures to avoid multi-million penalties.

Lawyers will perform the audit of the personal data to which your company has access, and will develop a set of measures of the organizational, legal and technical nature to ensure security of personal data and your business.

Corporate disputes are potentially possible wherever there are two or more business owners. The reasons for disputes are mainly related to the fact that the key conditions for cooperation and division of money and the powers have not been settled in the very initiation of the business, and with the growth of business and profits these issues begin to get worse.

First of all, we help founders of a new business to reach  understanding before going into business together by concluding a partnership agreement. Such agreement has legal force and may cover business in various jurisdictions, it is lawful and enforceable. If a conflict has already arisen, we help conduct negotiations on restoration and settlement of relations, and, if it is impossible, to arrange a “civilized divorce”.

Participants in many corporate conflicts benefited from our help, as it saved their businesses from collapse. Corporate conflicts are very dangerous for the team and business, so lawyers must be involved to resolve them as early as possible.

The Republic of Belarus is a party to a number of international bilateral and multilateral treaties, on the basis of which it is possible to recognize and enforce decisions of foreign courts in Belarus. A similar process is used for recognition of Belarusian courts’ decisions abroad. At the same time, such treaties have not been signed with certain countries, but the principle of reciprocity in recognition and enforcement of court decisions may be applied.

Depending on the type of a judicial act and the basis for its recognition and enforcement, different documents are required. Besides, the procedure itself is not “automatic”. On the contrary, the other party is entitled to demand rejection in recognition and enforcement of such decision by referring to invalidity of the arbitration clause, violation of public law, and on other grounds.

Lawyers have considerable experience in representing clients in such cases in many jurisdictions, due cooperation with partners in the international network of Arzinger Law Offices. We will prepare the required documents and support the client in litigation.

Many disputes are reviewed in courts as a result of an emotional conflict between the parties.

Our partners help “sit down at the negotiating table”, understand the cause of conflicts, find the point of compromise, and conclude the “settlement agreement”. The parties can settle down the conflict at any stage, including enforcement proceedings. Both parties benefit from this, as they can concentrate on business, not war.

The bankruptcy institute allows terminating a business project after it has failed due to a number of economic reasons.

We help the client to plan the entire procedure correctly, starting from assessing the grounds for starting the procedure, preparing the debtor’s bankruptcy statement and selecting management candidates, and finishing with support of all procedures, including creditors’ meetings, collection of accounts receivable. 

Unfortunately, many debtors abuse this procedure and try to evade liability this way. We will help creditors not only with proper drawing up of the creditors’ requirements, but also with full protection of their interests at all stages.

Creditors’ protection often involves challenging of transactions, appealing against actions (omissions) of managers, performing of an expertise, bringing the director and members of the debtor to subsidiary liability, replacement of managers.

If a government body has visited your company with an inspection, it may result in accrual of additional taxes and sanctions, bringing the company and officials to administrative liability. Criminal cases may be instituted with significant amounts of unpaid taxes.

The prospect of challenging the inspection results largely depends on the competent building of work with the inspectors at the stage of the inspection proper. Sometimes, the line between a legal act and an invalid document is very thin, and the seemingly insignificant risk of challenging a transaction becomes real because the company has underestimated the volume of violations and omissions made at the stage of business transactions registration.

Lawyers help promptly prepare the legal rationale for economic transaction performed and provide the required explanations. We support the client in the course of appealing against the inspection results and challenging the administrative measures taken in court and administrative proceedings.

We are ready to conduct specialized training for company employees on how to behave properly when an inspection is performed and in case of potential arrest. We can develop the set of measures to protect managers and owners of your business from the threats related to economic offenses.

Collection of debts for products supplied, works performed and services rendered is a very common dispute. But such common disputes may require a special approach.

The set of debt collection measures includes checking the debtor for solvency, availability of valid legal proceedings and enforcement proceedings, selecting and conducting the most efficient debt collection procedure for a specific situation (lawsuit or writ proceedings, notary inscription for enforcement, tax authorities’ payment order, etc.).

We interact with bailiffs, the court, experts and enforcement organizations in the course of enforcement proceedings to achieve the maximum result.

It is difficult for the private sector to track down new legislative initiatives and assess the impact of a particular bill on business. Involvement of a lawyer into analyzing a bill will allow assessing the degree of influence of the document on business activities and will allow planning a gradual and timely transition to new requirements.

New technological solutions often remain outside legal regulating: ten years ago, it was difficult to believe that unmanned cars would drive along roads and artificial intelligence would help assess the buyer’s prospects in offline trading. 

Lawyers will help identify the gaps of legal regulating of your business model and prepare proposals and draft amendments to the law that will allow developing the model within the legal field.

There may be a finished product, an excellent team, a reputation and a large marketing budget. But is everything good from the legal standpoint?

Investors give money for the product and people, but they give it to companies. The economic forms of companies (LLC, JSC, LTD, PLC, simple partnership) are abundant.

We will use plain language to explain which form of a legal entity is better to choose, how to formalize partnerships with other members and not be left out, and how to formalize intellectual property rights to your product so that not only users, but also investors and partners can see value in it as well.

Is it true that business in the USA will not be successful unless a company is incorporated in the state of Delaware, and it is operationally difficult to sell a product in the EU without incorporating a Cyprus company? Is Switzerland the crypto valley of Europe?

We have found answers to these and other questions on the basis of our practice, rather than with studying articles on fashionable hipster websites for startups. We know where the pitfalls are and can competently help determine how and where to move your high-tech business further. 

Confidentiality of information is a delicate issue, the error in resolving which can cause many problems for clients and partners, from spam and telephone marketing to theft of money.

The lawyer’s task is to help develop the company’s privacy policy and structure the process of collecting personal information so that to comply with all requirements of the Belarusian law and the law of the European Union member countries.

When incorporating a company, it is necessary to determine who will be the founder, how the profit will be reinvested and where the dividends will be transferred. Solution of all these issues is associated with the tax burden determination and incorrect calculation can cause to additional financial expenses.

The lawyers of Arzinger tax practice know how to arrange the business so that to reduce your expenses and increase revenues. 

It is important for a company to perform a full check on compliance with its tax obligations periodically. Timely revealing of underpaid taxes, incorrect accounting of funds and non-submitted tax returns will help avoid unforeseen expenses and liability for the organization and its managers in future.

Lawyers will analyze the tax policy of the organization and give useful recommendations on its improvement.

By monitoring the company’s activities, tax authorities can reveal the facts of underpayment of taxes to the budget, delays in their payment or incorrect displaying of certain economic transactions in accounting.

It can cause such negative consequences as penalties, forced suspension of economic activities and assignment of the status of an organization with the increased risk of committing offenses in the economic sphere to the organization.

Arzinger experts are ready to get involved into the dispute at the stage of inspection performed by the tax authority, so as not to bring the situation to court. And if it comes to resolving the dispute in court, they are ready to help finalize the situation with the minimum consequences for the client.

The more complex is the proposed transaction, the more thorough preliminary calculation of the tax liabilities arising from it is required. The company must consider the transfer pricing and thin capitalization aspects, determine the obligations to pay VAT and other taxes in advance. If a non-resident acts as a party to the transaction, the number of aspects to be taken into consideration is increased.

Arzinger will help calculate the risks of arising of a permanent representation in Belarus for tax purposes when making a deal, determine the country where goods, works and services are sold under the agreement and the need for a resident to act as a tax agent for a foreign business partner.

The Republic of Belarus has concluded treaties on avoidance of double taxation with more than 70 countries. Their proper use makes it possible to avoid the obligation to pay taxes twice in different countries when receiving salaries, dividends, interest on loans and other income.

Arzinger will analyze the category of income received by the client and the conditions of its taxation in Belarus and abroad to minimize the costs.

The antitrust law of Belarus impose special restrictions on certain market participants. Some deals (reorganization, sale of a part or shares, etc.) cannot be performed without the antitrust body’s consent, and without such consent it can be declared null and void. With that, it applies not only to entities that hold dominant positions in the market, but to the companies that have exceeded certain indicators in terms of revenue or assets as well.

Lawyers will advise on the need to obtain the consent in such situations and will also help obtain this consent if necessary.

Competitors illegally use your trademark, send letters indicating poor quality of your products, try to affect the lessor and get your premises, or, vice versa, accuse you of unfair competition?

Lawyers will ensure representation of your interests at the antitrust body, in courts, within the scope of administrative proceeding, suggest what actual measures will help avoid such situations and provide protection against unfair counterparties’ actions.

If third parties’ funds (funds of banks, investors, equity holders) are raised for implementation of a project, determination of the terms of funding is not less important than determination of the terms of cooperation with the contractor.

Advising and elimination of risks at conclusion of agreements, support of transactions with real estate facilities (pledging, sale and purchase, lease).

Prior to transaction registration, it is important to verify the legal status of the real estate property and the land plot, if they are the seller’s property, if they are pledged.

Lawyers advise the client of which documents on the land plot or real estate property must the title holder have before making the transaction and which documents must be additionally verified.

Legal audit helps reveal many hidden risks for the purchaser: if all the necessary permits for land have been obtained timely, if the title-setting documents are registered correctly, which restrictions there are to use land plot, whether the latter is in the protected zone.

An important component of a successful deal is negotiations with the counterparty regarding the deal and explaining the risks and the ways to prevent negative consequences to the client and the other party.

Lease of an office, warehouse, trading facility is literally the starting point of any business.

Disputes associated with real estate property can often be very sensitive for their parties, as the non-prevailing party is deprived of the titles for its land plot, real estate facility or unfinished construction facility and, therefore, all funds invested in it, as a rule.