What should be considered when choosing a country for registering a software development company?
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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