Hi-Tech Park Residents

In the modern world, competition for talented specialists is becoming more acute. Companies are looking for new approaches to HR management and business process optimization. One effective solution is outsourcing to the employer (EOR), which allows organizations to focus on their business processes and trust professionals to manage labor costs. 

In this article, we will look at the features and advantages that the High-Tech Park of Belarus provides to resident companies. In turn, EOR services are helpful for companies that are residents of the Hi-Tech Park and foreign companies that can receive EOR services from a resident of the Hi-Tech Park. Such services allow you to overcome personnel challenges, minimize risks, and focus on strategic goals.

Which companies are considered residents of the High-Tech Park

Residents of the Hi-Tech Park in Belarus include companies whose activities are related to innovation and development of the hi-tech industry. These companies have been issued a Certificate of registration as residents of the Hi-Tech Park (HTP).

Becoming an HTP resident is not very easy. Although it is not necessary to relocate the company geographically to the Hi-Tech Park (an HTP resident can be located anywhere in Belarus), it is necessary to collect a package of documents. The main thing for companies that want to get into the HTP is to create a reasonable business project according to the established requirements.

A foreign IT company cannot be an HTP resident. To obtain residency, a foreign company needs to register a legal entity in Belarus. However, you don’t need to do this if you apply for EOR services from a Belarusian company.

Why it is profitable for an IT company to get the status of a resident of the Hi-Tech Park

Obtaining the status of a Hi-Tech Park (HTP) resident provides IT companies with several significant advantages that can contribute to their growth and success in the modern market. Here are some key reasons why this is beneficial:
1. Tax benefits
HTP residents can enjoy tax preferences, including exemption from income tax, value-added tax, and other taxes. This can significantly reduce the financial burden and increase resources for development investment.
2. Simplification of administrative processes
The Hi-Tech Park offers simplified procedures for doing business with foreign partners and reporting, reducing bureaucratic barriers. This allows the company to focus on its core business processes rather than routine paperwork.
3. Access to qualified personnel
HTP resident companies have many talented specialists in information technology. Residents have access to qualified personnel, which is critical for companies seeking to develop innovative solutions.
4. Support and advice
The Hi-Tech Park provides residents with various support services, including legal and business advice, assistance in entering international markets, and educational event organizing. These can help companies quickly adapt to changes and make informed decisions.
5. Network of contacts and partnerships
Resident status allows you to establish connections with other companies, startups, and investors, which can lead to joint projects, partnerships, and experience exchanges, as well as the discovery of new business opportunities.
6. Investment attractiveness
Companies with HTP resident status may be more attractive to investors and partners. The status indicates the company’s reliability and commitment to innovation. Also, HTP resident companies have transparent, unique processes for attracting investment, such as a convertible loan.
7. Government support
HTP residents are exempt from customs duties for the import of equipment that they will use in their work as HTP residents. HTP residents can also attract foreign employees and managers in a simplified manner: for such people, a visa-free regime applies for 180 days in a calendar year.
8. You can operate on the crypto market
In Belarus, only HTP residents can legally operate on the crypto market, acting as crypto brokers and crypto exchanges. Simply put, only HTP residents can invest in cryptocurrencies, including in foreign assets, and withdraw cryptocurrencies into fiat money.
Thus, the status of a resident of the Hi-Tech Park gives IT companies several competitive advantages that contribute to their sustainable development and innovative potential in the market.

How to prepare a company to become a resident of the Hi-Tech Park

Step 1. State registration of the company
First, you need to get a state registration of the company in Belarus. It doesn’t matter where the company is registered geographically, as you can become an HTP resident regardless of the company’s physical location. HTP is physically located within the borders of Minsk but does not require the relocation of a resident company and placement on the territory of Minsk.

Step 2. Check the types of activities
About 40 types of IT activities are available to HTP residents (candidates for residents). A company that wants to become a HTP resident must carry out one or more activities from this list established by the state. In particular, only HTP residents can operate with cryptocurrencies. HTP residents ‘ activities also include:

• Software and game development.
• Implementation of customer orders in automated control systems: their design and development.
• Services for implementing, supporting, and maintaining information systems, databases, and software developed by HTP residents or third parties.

By and large, an HTP resident should not engage in activities not permitted for HTP residents.

Step 3. Bring the document flow in line with HTP requirements
All contracts of a company that wants to join HTP must align with the activities of an HTP resident even before joining. You must also switch to the general tax system if the company uses a different one.

Step 4. Companies that will work with cryptocurrencies form a statutory fund and meet the state’s requirements regarding countering money laundering.
The state requires crypto exchange companies and brokers to form a statutory fund. The minimum authorized capital in Belarusian rubles ranges from 500,000 (approximately 137,800 euros) to 2 million Belarusian rubles (approximately 551,000 euros). The authorized capital’s specific size depends on the activity with cryptocurrencies.

Regarding the requirements for preventing money laundering, companies that intend to conduct activities in cryptocurrencies need to hire certain security employees, form a specific organizational structure, comply with financial regulations, and approve local internal security documents. EOR services can relieve the company of such responsibilities, including preparing the necessary papers and hiring employees.

Step 5. Create a business project
A business project is probably the primary document a candidate HTP resident company needs. Specific requirements for a business project are stated in the requirements, and the project is drawn up according to these requirements. In a business project, it is necessary to justify, including with the help of figures, that the company’s activities are significant for developing new and high technologies.

Requirements for a business project can be found on the Hi-Tech Park website. 
The business project is submitted to the HTP Supervisory Board Secretariat. The Secretariat can return it for revision or submit it to the HTP Supervisory Board for consideration.

Step 6. Collect positive customer reviews and other documents
This is an optional step, but for a positive impression, you can collect and submit positive customer reviews, information about participation in various professional exhibitions, and information about development agreements with well-known companies, as well as your business project.

How is admission to the Hi-Tech Park residents conducted?

After all the steps are completed, the company’s documents are reviewed by the HTP Supervisory Board. The Supervisory Board reviews documents not as companies submit them but within the time limits it sets several times a year. Usually, you can find the nearest deadlines for reviewing documents on the HTP website or by phone in the Secretariat of the HTP Supervisory Board.

After the Supervisory Board’s favorable decision, the Secretariat issued a Certificate of Registration for the new HTP resident. The company becomes a full resident on the first day of the month following the one in which the Supervisory Board decided to admit it to the HTP. Before this, the resident company enters into an agreement with the Hi-Tech Park on the terms of operation in the HTP.

What are the responsibilities of HTP residents?

In addition to benefits after joining the HTP, resident companies must perform specific duties:

• Send copies of tax and statistical reports to the HTP Supervisory Board Secretariat.
• Pay a quarterly fee to the Secretariat of the HTP Supervisory Board under the agreement on the terms of operation of an HTP resident.
• Submit an audit report to the HTP Supervisory Board on an annual basis.
• Submit quarterly and annual reports to the HTP Supervisory Board Secretariat.
• Inform the HTP Supervisory Board Secretariat regularly about the movement of money in the HTP residents’ bank accounts with foreign banks.