Economy ministry indicates that there are no plans to lift employment restrictions on sole entrepreneurs

The Ministry of Economy has made it clear that the authorities have no plans to lift a ban on the employment of people other than family members for small business...

The Ministry of Economy has made it clear that the authorities have no plans to lift a ban on the employment of people other than family members for small business owners with sole entrepreneur status.

In a reply to a fresh appeal against the ban filed by a small business association called Perspektyva, the ministry suggested that sole entrepreneurs should convert into a legal entity if they needed to hire staff.

“If a sole entrepreneur has achieved such a commercial success that he needs additional labor resources for the further development of the business and has financial opportunities to hire them, the employment issue should be settled through the establishment by the sole entrepreneur of a commercial organization,” the ministry said.

“The state has created favorable conditions for individuals registered as individual entrepreneur to engage in commercial activities as a private unitary enterprise,” it noted.

The ministry said that “a significant amount of work” had been done in the last several years to simplify the conditions for economic entities, including micro businesses with the total staff of up to 15 workers. They have an opportunity to get registration for a private unitary enterprise without authorization, being able to do this electronically since September 1, 2011, it said.

Efforts also were made to reduce and “optimize” the tax burden on businesses, which means that the government is “taking significant steps to create quite sustainable conditions for the development of small businesses” in the country, the ministry added.

The employment restrictions are a “shameful provision that is against the spirit of the constitution,” Perspektyva leader Anatol Shumchanka told BelaPAN.

Perspektyva is set to continue its fight for its abolition, he said.

The suspension of the ban will make it possible to increase the number of people employed in the sector to up to 10 percent of the economically active population by 2016 while increasing tax payments made by sole entrepreneurs from $285 million in 2009 to more than $1 billion a year, said Mr. Shumchanka.