Registration of IT companies

Registering an IT company: what you need to know

You are engaged in IT activities and want to do it officially and legally, taking your business to a new level? Then you need to register a company in the jurisdiction that suits you and at the same time in accordance with all the rules and regulations. And therefore, it is best to entrust the solution of this case to experienced professionals if you want to get the desired result without risks. And you will learn how to achieve this in today's guide.  If you are building a product and plan to raise investment, see our separate service: company formation for startups raising investment.

It company registration: process features

The most popular forms of IT companies that are opened in Ukraine are:

• FOP. A company of this type, which can work with any foreign companies, can be issued by any adult citizen of Ukraine or a foreigner with a permanent residence permit in Ukraine. Such forms use a simpler system of taxation – 5% of income and at the same time a single social contribution. 
• OOO. A company of this form is a legal entity, but the founders can be both individuals and legal entities. In this case, citizenship is completely unimportant. It is convenient that in such a company management is carried out through the management, but only the founders decide the really important issues. But unlike FOP, LLC pays wages to company employees and pays for them taxes, unified social and military fees. 
• Permanent Mission. It is used quite rarely, since the taxation system is rather unprofitable due to the fact that it is impossible to choose the form of a single tax of 5%. It is used only by foreign companies, because simplified visa support is provided for all employees in Ukraine.

After you decide on the form of organization of the company, you need to go through the process of registering it. And in each case it is different. Therefore, it is worth contacting specialists who will solve this issue for you in the right way without risks and financial losses.

Registration of an IT company: which models work

To a large extent, the choice of the form of the enterprise depends on what type of service you plan to provide:

• Service agreements. If you are ordered development or testing services, in this case a contract is concluded between the parties, and the developers can work at home or in an office convenient for him, which is not connected with the customer. This format is associated with low costs and lack of social obligations for the customer.

• Open space. This format of work avoids accusations that this is a permanent establishment and employees are in an employment relationship with the customer. To get started, a Ukrainian company needs to rent an office to FOP IT specialists and conclude a software development agreement. In this case, the risks of being fined are reduced.

• Employees of LLC. In this format, you can provide services to both Ukrainian and foreign citizens. Labor contracts are concluded with each employee of the company. And when choosing this type of work, the risks of getting a fine for labor legislation are minimal. 

• Mixed model. It is considered the most comfortable, because some of the services can be ordered from a Ukrainian LLC, and some from a foreign FOP, using the advantages of all models a little. But successful work requires a complex internal report and control of actions. 

It is also possible to work in the format of a permanent establishment or not to formalize cooperation at all. But in the first case, an expensive and unprofitable taxation system, and in the second, there is a risk of being fined due to non-payment of taxes. It is in this situation, more than ever, that the help of a lawyer and financier will be useful. They will select the most optimal business model for you, based on your preferences and wishes, so that you receive only profit and development, and not penalties and financial losses. 

How to open an IT company: step by step

To achieve this result, you need to take the following steps:

• Come up with a company name that will be checked for plagiarism and choose the optimal taxation system.
• Rent an office, purchase the necessary equipment and purchase a software development license. 
• Develop and approve internal security policy rules and a way to keep data completely confidential from third parties.
• Establish a payment system for settlements with staff, investors and creditors. 
• Conclude work contracts with employees and register intellectual property rights, taking into account the requirements Ukrainian law. 

These are all legal issues, the solution of which without the help of an experienced and trained specialist is almost impossible, if you do not even have basic knowledge about this process. Especially if you need to obtain a license to carry out your activities. 

Opening an it company: when a license is needed

When opening an IT company, you must obtain a license for your activity if it is related to the following areas:

• Online casino. 
• Forex trading.
• Trade/exchange of cryptocurrency and electronic money. 
• Medicine, pharmacology and medical services. 

Of course, each jurisdiction has its own business licensing requirements. But if a license is needed there, and you work without official registration, you will receive huge penalties and financial losses. And do not forget that it is impossible to completely avoid taxes. 

Therefore, you will have to pay attention to renewing the license, maintaining accounting and tax reporting, as well as servicing the company. With the solution of each of these issues, an experienced specialist in the field of registration of IT companies can effectively help. 

Why you should open an IT company through us

This is exactly what you will find at CRYSTALTAX. When applying for our services, you guarantee yourself the help of a large team of trained and savvy lawyers, financiers and accountants who will work to achieve the desired result. By choosing us, you get:

• Consultations regarding all your questions before opening a company and after its launch. 
• Collecting and preparing the necessary package of documents and submitting them for a license. 
• Representation of your interests in state institutions and structures. 
• Removing you from having to participate in the registration process and deal with bureaucratic processes. 

But the main thing that you get with our help is saving time, effort and nerves. Instead of dealing with issues in which you are poorly versed, it is better to entrust this matter to specialists who guarantee you the desired result. And you can spend this time with your family or for your favorite pastime. Agree, it is much more pleasant. So sign up for a consultation and we will ensure that you start a successful and legitimate business, saving you a headache!