In the modern world, business in the field of information technology is becoming increasingly relevant and in demand, along with such traditional areas as trade and services. However, these types of activities, to one degree or another, are increasingly carried out in a digital format. As the experience of isolation during the coronavirus pandemic has shown, IT is one of the few industries that continues to operate in any conditions. Moreover, during the crisis, this industry has become even more in demand.
As a rule, IT companies are distinguished by the international nature of their activities, that is, they do not have a local connection to a specific country and operate on an international scale. This opens up great opportunities for optimal corporate and tax planning. An optimal holding structure can be created that has advantages in terms of taxation, corporate governance and financing.
Ariela Consulting has extensive experience in comprehensive support of IT projects: from startups to projects of large corporations. We will help you competently formalize the ownership and management of the IT project and we will advise on project financing, registration of employees, conclusion of contracts, protection of intellectual rights and other turnkey issues.
We work with entrepreneurs developing software, mobile applications, instant messengers, online courses, online games and much more.
Market participants who need legal support in the IT field are:
Owners of Internet platforms and services;
Software manufacturers, including developers of mobile applications and games;
Creators of instant messengers;
Social media;
IT startups;
Investors who want to direct funds to IT startups;
Digital marketing;
Blockchain projects, etc.
Dynamically changing conditions and rules of the game in the international business environment require constant attention. This concerns not only issues of corporate and tax planning, but also the protection of IP rights, relationships with developers and other issues relevant to IT companies. Having extensive practical experience, we know what solutions are currently relevant for IT business, and what you should pay attention to first.
So, what needs to be taken into account when structuring an IT business with the participation of international companies?
Optimal taxation for corporate income tax, VAT, as well as the ability to apply preferential rates for other taxes, for example, royalties (due to the fact that conducting IT activities, as a rule, also implies an optimal scheme for owning objects of intellectual rights);
The possibility of applying benefits for owners of intellectual rights (the so-called “IP box regime”, which exists in many European countries; for example, in Cyprus, thanks to the IP box regime, the effective corporate tax rate can be 2.5% instead of the standard 12.5%);
The ability to open a bank account in the country of registration of the company for the most optimal interaction with counterparties, such as Google Play and AppStore, as well as the possibility of using acquiring to receive and make payments with the participation of individuals;
Competent structuring of ownership of a foreign company, including: how/to whom and in what form it is better to register rights to a foreign company, how to formalize and carry out relationships with developers and freelancers;
How to finance projects, how to distribute cash flows within the existing structure with the participation of a foreign company, how to correctly calculate the costs of operating;
The possibility of the most flexible organization of activities: the ability to easily manage a company remotely, while having the option at any time to promptly relocate to the country of registration of the company, and (or) rent an office there and hire local employees.
There may be more nuances to the international structuring of an IT business than it seems at first glance. IT developers and investors are often focused on business ideas and the implementation of the product itself, and therefore cannot pay due attention to all the legal nuances and risks. That is why the involvement of experts is relevant and necessary to ensure that your business does not have unpleasant “surprises” in the future.
Ariela Consulting experts offer consultations on all of the above issues.
Our company can offer you the following services for the optimal structuring of your IT business:
Selection of the optimal jurisdiction and choice of a foreign bank and (or) payment system;
Tax planning;
Analysis of tax obligations under Russian legislation, in particular, issues of controlled foreign companies (CFC);
Support of issues related to intellectual property;
Legal support for attracting investments and preparation of relevant documentation;
Drafting of contracts with software developers, employees (full-time and freelance), investors;
Creation and relocation of offices abroad;
Personal tax planning (tax and currency resident issues
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