How to start an it company in 2023?
How to start an IT company?
The field of information technology has long been the locomotive of the modern market. However, a rare businessman carefully considers the issue of how to open an IT company in a short time and without hidden nuances. Instead, entrepreneurs focus on technology, completely forgetting about the legal aspects of business registration. Let’s fill the indicated gap.
Before opening your IT company in 2023 , you must first solve a number of legal problems:
- decide on the name of the project;
- choose a legal form;
- prepare documents;
- open a bank account.
Requirements for the name of a company in the IT industry are fundamentally no different from the general conditions. The name must be unique, otherwise the registrar will indicate plagiarism. In addition, the main identification property must not contain illegal or immoral meaning.
If you can still decide on the name without significant expenditure of effort, then the choice of the organizational and legal form of many novice entrepreneurs leads to a dead end. Key problem: before how to open an IT company , you still need to decide on the jurisdiction.
If you plan to manage a project in Ukraine, Russia or other neighboring countries, then the most popular organizational and legal form of doing business is LLC. It is beneficial to create a limited liability company if:
- several people or a whole team are involved in the project;
- the product of labor will be a full-fledged product for a wide range of people;
- clear rules of procedure are required, set out in the charter;
- the authorized capital of the company significantly exceeds the start-up finance of one founder.
LLC is always a compromise and search for a “golden mean” between different founders. Before opening an organization in this form, you need to consider:
- the size of the shares of each of the founders. To avoid conflicts in the future;
- number of responsibilities and time to invest in the business;
- the ability to leave the company under certain conditions.
The more detailed the rules and conditions of cooperation are, the less conflicts will arise in the future. A clear regulation of all the powers of the participants is important.
If a novice merchant plans to work independently or with a small number of hired workers, then instead of an LLC, it makes sense to consider the status of an individual entrepreneur (sole proprietor in Ukraine).
The closest analogue of LLC abroad is LTD. If a merchant asks the question, how to open an IT company abroad, for example, offshore, then it makes sense to consider this organizational and legal form in the first place.
After choosing the format of the activity, you will need to prepare a voluminous package of documents. For example, for LLC you will need to issue:
- activity codes according to KVED;
- bylaws and minutes of the first meeting;
- internal documents of the company;
- appointment of a director;
- passports of the founders.
Do not forget about the need to create a bank account. An IT firm, like other types of business, is a full-fledged participant in legal relations and transactions with clients, therefore, for settlements, details in a banking institution will be required.
The above steps when opening an IT company are required in all cases. Obviously, with self-preparation, the registration procedure can be significantly delayed, since a novice entrepreneur is unlikely to understand the intricacies of local legislation. This is a serious nuance that should not be discounted. While an entrepreneur studies the requirements of the law, time goes on – for startups in the field of information technology, this is disastrous. You can simply “be late” with the innovations and not interest anyone.
It is for the above reason that it makes sense to contact competent lawyers who know all the intricacies of an IT business. Thanks to professionals, you can quickly resolve legal issues and start conquering the market with new technologies and solutions.
What is the cost of starting an IT company?
Before starting an IT company , you need to decide on the entry budget for the industry. On average, starting savings should start at $ 1.5 thousand. It is optimal if the entrepreneur has about 3 thousand dollars. These savings will go towards:
- office rent;
- legal support;
- mandatory payments for registration;
- advances to developers and other professionals (depending on the industry in IT, these can be testers, designers, marketers and others).
In itself, the registration of a business in Ukraine is not difficult, but only if all legal and financial issues are taken into account in advance. For example, compulsory payments include state fees, lease of a legal address and notary services to certify the charter – in total, the costs of these actions will amount to at least 5 thousand hryvnia.
A key piece of advice for aspiring entrepreneurs is to skimp on the talent. The successful implementation of the product will depend on them. The same applies to legal representatives who will collect documents, resolve tax issues and draw up the charter of a future IT company. By hiring and working with competent lawyers, you can significantly save on potential problems in the future. A business does not open for one day, and it is highly recommended to provide it with a long life in advance, and not create risks of bankruptcy and other problems.
What are the competitive advantages?
Ukraine, being an IT hub, is full of tech companies. If an entrepreneur plans to open an IT company , then he will need to work out his own impact advantages and a unique selling proposition (USP) in advance. To do this, you need to first analyze the market – to understand what the industry is already saturated with and what is lacking.
If you plan to make a truly unique product and bring it to the market, then you need to focus on novelty. In turn, when developing analogs of existing software solutions, it is necessary to show the beneficial aspects of the new product. The software provides a huge scope for implementation and creativity, so it is important to pre-build the correct positioning of the business.
Before how to start your own IT company , you need to take into account not only the technological side of the issue, as is usually done by aspiring entrepreneurs. The financial component and legal support of the organization are no less important.
Without the help of lawyers, a startup will have to independently prepare documents, resolve tax issues and choose the optimal organizational and legal form. This will inevitably lead to a delay in the time to market. For the information technology industry, any miscalculation over the opening time is already a failure on the starting line. It is recommended to involve in registration experienced lawyers who know the nuances of registering an IT company.