Free Economic Zone "Gomel-Raton"

Free Economic Zone "Gomel-Raton"

Free Economic Zone (FEZ) Gomel-Raton is created by the Decree of the President of the Republic of Belarus of March, 2/1998 for the period of 50 years.

Free economic zones activity in the republic is determined by a number of legal acts, primarily the Law of RB "On Free Economic Zones" of December, 7/1998 #213-3. The other legislation of the Republic of Belarus is applied being adjusted to the features stipulated by the Law "On Free Economic Zones" and other legislative acts, regulating FEZ activity.

FEZ Gomel-Raton is a part of the territory of the Republic of Belarus with the precisely defined borders and special legal regime establishing more favorable than usual conditions of conducting business and other economic activity.

The special legal regime in FEZ is a body of legal acts establishing special rules and conditions of taxation, of currency, customs and other regulations in free economic zone. (The normative legal documentation on FEZ can be found at http: www.gomelraton.com).

State registration of economic entities and representations of non-residents of RB is performed on the territory of FEZ Gomel-Raton by its Administration in accordance with the current legislation. A free economic zone resident is a Belarussian and/or foreign natural or legal person registered by Administration in accordance with the established procedure.

Registration of economic entities as FEZ residents is performed on the principles of competition. The conditions and order of competition are determined by "Regulations on Competition on the Right of Legal Persons and Individual Entrepreneurs Registration as FEZ Gomel-Raton Residents". A participant of competition submits the investment project for consideration of the Competition Committee. The investment project's selection criteria are as follows:

Minimum size of the authorized fund for legal persons - USD20,0 thousand, for banks and nonbank credit and financial organizations - from EUR500,0 thousand at the moment of registration finishing up to EUR1,0 million within one year;
Products export delivery ratio to the total amount of sales (except high-tech and import substituting projects) - not less than 90 %;
Predicted export / import ratio when reaching designed output - not less than 1,2;
Not less than 90 % of the technological equipment acquired under realization of the investment project should be not older than 5 years from the moment of output.

The products export delivery ratio can be changed providing FEZ resident's production is included into the State Import Substituting Program or into the State Register of High-Tech Productions. The obligatory condition for registration as FEZ resident is a conclusion of the Contract with FEZ Administration on conditions of economic activity in FEZ.

Registration of newly created enterprises as FEZ residents, commercial organizations with foreign investments included, is at the same time the state registration. FEZ resident is a legal or physical body enjoying the conditions of special legal regime being enforced on the territory of FEZ. According to the current legislation payment for the state registration is established at a rate of EUR60. The state registration of the commercial organization with foreign investments is fulfilled within 15 days from the date of submission of the application and a set of documents by the founders.

The incentives stipulated by "Regulations on Free Economic Zone Gomel-Raton" come in force after conclusion of the contract on conditions of economic activities in FEZ Gomel-Raton with its Administration. The incentives are extended to production (work, services) of own manufacture.

The established FEZ special legal regime, including favorable terms of economic, investment and other activity, is extended to FEZ residents' economic activity carried out on the territory of free economic zone. The incentives are not extended to the structural divisions of FEZ residents located outside FEZ territory. The rights and privileges stipulated by the special legal regime, are not extended to trading and purchasing activity, retail trade and public catering.

FEZ Gomel-Raton residents pay the following taxes and non-tax payments: profit and income tax, VAT, excises, ecological tax, citizens' income tax, land tax (or rent payment), state and social security contributions, state duties and fees (rates of tax payments for for FEZ Gomel-Raton residents can be found at http: www.gomelraton.com). The augmentation of the abovementioned list of taxes and tax rates stipulated by Regulations on FEZ Gomel-Raton is not allowed during the period of its functioning (till the year.2048).

FEZ Gomel-Raton residents have the right to operate in the regime of free customs zone. When foreign goods are imported into the territory of free customs zone customs duties are not paid except the fees for customs clearing (0,15% of customs cost); the measures of economic policy are not applied.

When goods are imported from the territory of free customs zone into the rest part of the customs territory of the Republic of Belarus customs duties are paid; the measures of economic policy are applied depending on goods origin.

When goods are exported being originated from FEZ territory beyond the borders of the Republic of Belarus customs duties are not paid except the duties for customs clearing (0,15% of customs cost); the measures of economic policy are not applied. As for the goods not originating from FEZ territory, customs duties are paid and measures of economic policy are applied when the goods are being exported from FEZ territory beyond the borders of Belarus according to the legislation of the Republic of Belarus.

For settlements in FEZ the national currency of the Republic of Belarus and convertible foreign currency may be used in the order determined by the National Bank of the Republic of Belarus. The peculiarities of financial and currency regulation, banking and insurance activity in FEZ territory are determined by the legislation of Belarus.

In FEZ foreign technical and management personnel can be hired without any limitations.

On FEZ territory:

Individual rights and liberties stipulated by the Republic of Belarus laws are guaranteed;
Discrimination and other illegal limitations of the economic entities’ rights are not allowed;
Compulsory nationalization, requisition or similar actions are not allowed with the exception of the temporary termination of the invested property export from FEZ territory till the repayment by an investor of the debt under obligations.

The system of state guarantees of investments protection stipulated by Investment Code of the Republic of Belarus is being applied to FEZ foreign investors. FEZ foreign investors are guaranteed by the state the right to return their share in the enterprise property by the depreciated cost as well as to transfer the amount of profits due to them, foreign currency included, earned from the investments into the zone, beyond the borders of FEZ and the Republic of Belarus.

The main advantage of FEZ Gomel-Raton for investors is an availability of well-developed infrastructure, engineering and transport communications. Practically, investors are provided in FEZ with everything necessary for creating and opening new manufactures – vacant production, warehouse and office premises which may be rented or acquired by the investor into property. The priority right for rent of vacant premises is legislatively fixed for the residents of FEZ.

From the beginning of FEZ Gomel-Raton operation Administration has been working on creation of the appropriate service infrastructure:

Customs clearing post Gomel-FEZ organizing customs clearing of FEZ residents has been created;
PJS Company “Joint-Stock Bank RATON” is registered as FEZ resident and renders full-cycle banking services to the clients;
Representation of Gomel Branch of Belarussian Chamber of Commerce and Industry has been opened in FEZ to render services on issue of certificates of origin, of origin expertise acts, of certificates on products of own manufacture and also the services of a customs agent;
Gomel Business-Innovation Centre renders services on small-scale entrepreneuralship, scientific researches and developments commercialization with their further introduction at FEZ enterprises
Agency on Investments Promotion is providing consultation on commercial activity and management.
Insurance and leasing companies are being founded.

You are welcome to Free Economic Zone GOMEL-RATON!

FEZ Administration will bend every effort to make the start of your business in our free zone a success.

You could find additional information about FEZ Gomel-Raton at websites http://www.gomelraton.com