Many countries are interested in attracting IT companies to their jurisdictions, as it significantly stimulates economic growth within the country.

A certain list of countries has always been a priority for founders due to tax benefits and ease of doing business.

We offer services for registration and conducting IT business in the main ones.

Estonia

Estonia attracts IT business with its tax system and the possibility of fully remote company management through e-residency.

Of course, the main factor that foreign investors pay attention to in the first place is the corporate tax rate, which is charged exclusively on the amount of distributed profits (when paying out dividends).

The most popular form of company registration in Estonia is OÜ (osaühing) or limited liability company, whose owners have their share in the capital and are liable only to the extent of their share. OÜ is suitable for small and medium-sized businesses.

Company registration in Estonia is carried out by power of attorney or through e-residency.

Registration of a company in Estonia requires a share capital of at least 2,500 EUR. The authorized capital must be paid within 10 years from the date of company registration or at the time of payment of the first dividends. In 2023, it is planned to abolish the requirement to contribute the authorized capital.

Estonian tax legislation is very favorable and, what is very important, transparent.

Estonia levies corporate income tax on distributed profits of the company (instead of annual corporate tax).

In simple words: 0% income tax (if you do not withdraw dividends and do not buy back company shares).

A company registered in Estonia is subject to mandatory VAT registration when it reaches an annual turnover of 40,000 EUR.

As long as the company does not have a VAT number or employees, only an annual report is required to be submitted to the Estonian authorities. However, this does not mean that there are no accounting requirements in Estonia.

After the company has obtained a VAT number or employed staff – it is necessary to submit reports to the Estonian tax department twice a month.

United Kingdom

In the UK you can register a company in the form of LTD (limited liability company) or LP/LLP (partnership).

We do not recommend choosing LP or LLP forms for doing business. From the available forms it is better to choose a company in the form of LTD.

What will be the difference in cost between companies of different forms? The difference in costs is as follows: registering an LTD adds the costs of submitting financial statements once a year. At the same time, the first financial statements are submitted after 1.5 years of the company’s operation.

The advantages of choosing an LTD company are obvious: it is easier to open a bank account for LTD, the bank will have fewer questions than for LLP, LP companies; transparency and openness of doing business.