The IT industry has faced many problems in the last month: communication interruptions, security of employees, pressure of security officers. Many companies have begun to seriously consider a full or partial relocation to neighboring countries to reduce or share the risks of disruptions and disruptions to well-functioning business processes.
One of the most affordable options is relocate to Ukraine. Moderate tax burden, lack of language barrier, digitalization of services in various spheres of life make this country a more suitable place to do business. Therefore, next we will consider step by step how to move an IT company to Ukraine. Where to start?
Create a company
For starters you need register a legal entity, on whose behalf the company will work in Ukraine and further employ workers from Belarus. It is not a problem if the founders of the company are non-residents. Who can be a director, and what else needs to be considered at this stage?
✅ Find a director. At the same time, according to Ukrainian law, the director of the company must be either a resident of Ukraine or a foreigner who has a work permit. Therefore, at the initial stage, the temporary director must be a resident of Ukraine, until an employment permit is obtained for a non-resident director.
✅ Choose an address. To register a company you need an address in Ukraine. If you do not have a rented office yet, the easiest way is to rent an address from specialized companies.
✅ Choose a taxation system. To get started, you can use a simplified system of taxation (3 groups of a single tax). Under this system, the company's income cannot exceed UAH 7 million (about $ 250,000) per year. The company must pay quarterly 5% of all quarterly income.
✅ Determine the size of the authorized capital. There are no minimum requirements. We recommend that you indicate an amount sufficient to support the company's operations until it begins to receive income from its core business.
✅ Ukrainian taxpayer code for the founder. This can be done remotely by issuing a power of attorney to a representative in Ukraine. If the founder is a legal entity - an extract from the trade register with a translation and an apostille.
✅ To issue a power of attorney from the founder. You can create a company remotely, without a presence in Ukraine. To do this, you need to issue a power of attorney to the person who will be engaged in registration on the spot. The power of attorney is notarized and with an apostille.
The final stage is to open a company account in a Ukrainian bank.
If the company's founding and other documents are ready, you can create a company within a week.
After opening a bank account, the company is ready to work and you can move on to the next stage - the legalization of IT professionals in Ukraine.
If you have any questions, you can contact us for a consultation or write to Telegram: https://t.me/dmitry_nikiforov_ua or mail info [at] bargen.com.ua
Apply for IT specialists
To legalize Belarusian IT specialists in Ukraine, it is necessary to obtain a foreigner's work permit and residence permit.
✅ Registration of work permit for foreigners. General rule - the permit is issued for the term of the employment contract. But Ukrainian law provides preferences for foreign IT professionals. It is possible to obtain a permit for 3 years, instead of 1 year, as for other categories of foreigners.
The official permit fee is about $ 450 per permit. Terms of registration - up to 15 working days.
✅ Registration of a residence permit for employees of an IT company. Obtaining a residence permit will not be a problem with an employment permit. Residence permit is required for unimpeded entry / exit and stay in Ukraine. Its validity will be the same as work permits - up to 3 years. Official fees - $ 70, term - up to 15 working days.
✅ Taxpayer code. You can't do without it, because you need to open a bank account to receive a salary. The code can be obtained free of charge from the tax office at the place of residence or work within 5 working days from the date of application.
What is the tax burden on the salary of an IT specialist?
Let's look at a specific example. The average salary of a developer in Kiev - 2000 dollars. In Ukraine, it is deducted from the salary personal income tax 18% and military collection 1.5%, and is also calculated on the salary single social contribution 22%. Thus, with a salary of $ 2,000. need to pay 41.5% taxes, ie about $ 830.
✅ How to optimize? It is possible to register employees as private entrepreneurs and save significantly on taxes by paying less than $ 100 / month.
Now the company is established, and employees can cross the border and get to work. It remains put in order the internal documentation and, if necessary, to register the copyright to the software.
Internal documentation can be developed both from scratch and use the existing database, adapting it to Ukrainian legislation. For example, you can adapt NDAs, employee agreements, license agreements, intellectual property development and transfer agreements, user agreements, and other documents.
If your company is a developer, you will need to take care about registration of copyrights on programs, applications, plug-ins, games. It should also be held trademark registrationto protect yourself from copying the product by a competitor.
How long can a relocate last?
The process is definitely time consuming and there will be many organizational aspects and nuances. At each stage, the preparation of documents will take a long time, it is also worth adding time to coordinate actions with Ukrainian lawyers, formalities on the ground and waiting for documents from local government agencies. All this can take from 1 month.
Relocating an IT company to Ukraine is a real way to reduce the risks of business disruptions and business process disruptions. The presence of a representative office of the company in Ukraine or the relocation of part of the team will be a guarantee of stable work and fulfillment of obligations to contractors.