Conditions for opening IT companies in the world. Countries suitable for doing business in the IT sector, business in Georgia
Are you planning to open your own IT company and choose a country where it is easy and simple to develop a business? Find out from our article which countries are ideal for the IT sphere! Follow the link right now to sort out the pros and cons of each of them!
Find out the conditions for IT companies in the world ⬇️
The field of information technology is considered one of the most profitable today. The pandemic and the transition to remote work have identified the main priorities when choosing activities for entrepreneurs.
The opportunity to work from anywhere in the world gave a chance to choose a country to open a company that will be as comfortable as possible for doing business. We have studied the countries that are best suited for opening IT companies, and then we will analyze the pros and cons of each of them.
The main points important for opening an IT company
When choosing a country, you need to have a list of points that will affect the development of the company. Comparing these indicators, you can find a country that will be most suitable for the proposed business.
Criteria for comparing countries to open an IT company
- Availability of additional funding, grants, and benefits for small businesses. The opportunity to apply for a loan to open a company.
- The need to hire qualified employees among the local population.
- Tax rates, benefits and conditions for IT companies.
- Restrictions for foreign entrepreneurs in Georgia, availability of banking services and the possibility of opening a corporate account.
Cyprus for the opening of IT companies
Cyprus is a popular country for entrepreneurs in the field of information technology. He achieved a leading position thanks to reliability and a positive reputation for doing business.
Advantages of Cyprus for doing business and IT companies:
- The absence of dark offshore.
- Low income taxes.
- Availability of a corporate account in the country's banks.
- The possibility of owning a company by non-residents of the country.
Disadvantages of Cyprus for doing business and IT companies:
- For non-resident owners, there are difficulties with paying dividends, since it will not be possible to get a certificate from the tax service for this.
- The requirement to conduct an annual audit.
- A mandatory requirement is to hire a secretary from local residents.
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Estonia for opening IT companies
The progressive development of the country, especially in the field of IT technologies, attracts entrepreneurs to start a business in Estonia. This country is striving for global trends and provides excellent prospects for IT companies.
Advantages of Estonia for doing business and IT companies:
- No income tax.
- The capital increase is considered as the company's income and is not taxed.
- Simple accounting statements, no audit requirements for small and medium-sized businesses.
- The director is not obliged to receive a salary, which means he does not have to pay income tax from it.
- Low prices for rental of premises
Disadvantages of Estonia for doing business and IT companies:
- The tax on dividends is 20%.
- Inability to open a corporate account in the country's bank for non-residents.с
Ireland for opening IT companies
The country to which large IT companies are moving their offices is Ireland. Comfortable tax rates, excellent reputation of the country make it attractive for opening an IT company.
Advantages of Ireland for doing business and IT companies:
- Affordable prices for rental of premises.
- The income tax rate is only 6.25% for an IT company, subject to certain conditions. For the remaining 12.5%.
- A limited liability company registered in Ireland can safely make payments in other countries.
- A small business provides only accounting statements, without conducting an audit of the company.
Disadvantages of Ireland for doing business and IT companies:
- It is not possible for non-residents to open an account for the company.
- Medium and large businesses are required to conduct an annual audit, plus provide tax and accounting reports.
- Expensive maintenance and maintenance of your own company.
Armenia for opening IT companies
Armenia unexpectedly got into the list of favorable countries for opening IT companies, thanks to tax rates and various benefits.
Advantages of Armenia for doing business and IT companies:
- For an IT company, there is no income tax, 5% dividend tax.
- There are no requirements for the admission of employees to the company's staff from among local residents.
- There is no mandatory rental of premises for the company's office in the country.
- The amount of the authorized capital can be 1€.
- An opportunity for non-residents to be a director of a company.
- There are special conditions for additional financing for IT companies.
Disadvantages of Armenia for doing business and IT companies:
- Not all IT-spheres are included in the list for special investment conditions for financing.
- Non-resident owners cannot return the tax on dividends, which for them is not 5, but 10%.
Georgia for the opening of IT companies
Georgia has been holding a leading position among the countries suitable for opening IT companies for several years. Numerous investment companies, grants, and benefits for non-residents have been created specifically for this.
Advantages of Georgia for doing business and IT companies:
- Quick and easy company registration.
- Numerous benefits.
- No special requirements and restrictions for non-residents of the country.
- The possibility of opening a multi-currency account for the company in the banks of the country, including remotely.
- Security and confidentiality of data about the company's work, including financial activities.
- No requirement to obtain a license.
- Remote business management.
- Absence of bureaucracy of corruption, transparency of business and work of state structures.
Disadvantages of Georgia for doing business and IT companies:
- To obtain the status of a Virtual Zone, a confirmation of presence (substance) is required, which implies the rental of an office, local residents in the staff and expenses to ensure the company's activities on the territory of Georgia.
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