What should be considered when choosing a country for registering a software development company?
Taxation
income tax rate
tax on dividends and royalties
income tax on employees’ salaries
existence of VAT on IT services
social fees and contributions
Company incorporation conditions
the possibility of online incorporation
requirements for founders
the minimum amount of the authorized capital
availability of real, local offices, employees, and partners
Corporate management of the company
necessity to appoint a CEO
actual economic presence (substance): control and management of the company in the country of registration
the decision-making process in the company
Accounting and financial reporting
annual audits
currency control
financial monitoring
banking compliance
Special conditions for IT business and benefits
tax holidays
reduced or zero VAT rates
special tax regimes: IP-Box in Belgium, Hungary, the UK, Cyprus, Lithuania, Ireland, the Netherlands, Spain, France, and other countries; Patent Box in Switzerland and the UK
tax incentives for IT startups
revocable and irrevocable financing of the IT sector
Doing business after opening an IT company
location of clients
financial and business reputation of the country of IT company incorporation
the ability to conduct business online: a developed system of state online portals
attraction of investments: IPO, ICO, business angels and other sources of external financing
efficiency of legal protection: the availability of specialized courts and the speed of enforcement of judgments