Why Ukrainian IT Companies Establish Their Business in Europe?

Today, many Ukrainian IT companies have opened their representative offices in European countries. This trend was outlined long before the war, but now it has become widespread. In our article, we will tell you how this trend affects the IT market and why these changes are positive.

Should Ukrainian App Developers Open Representative Offices in Europe?

Opening an office in a "foreign" market is an excellent solution for building relationships between potential customers and contractors. In addition, this is an excellent market research in the field and the simplification of bureaucratic routines.

For Ukrainian companies, this is also an excellent way to legalize in Europe and avoid complications with bureaucratic paperwork and payment. Another aspect is the expansion of the market of potential projects.

The Pros and Cons of Setting Up a Representative Office in EU for Ukrainian Business

One of the main advantages of a representative office is that there is no need for start-up capital or a certain level of company income.

Among the advantages of such a solution:

• Reducing the tax burden: small and medium businesses recell and medium businesses receive some bonuses from the state and lower tax rates in some cases.
• Public support: The EU provides funding in the form of loans and grants to a wide range of projects and programs in areas such as education, health, consumer protection, humanitarian aid and others.
• Profitability: The European Union is a significant contributor to the global economy as the largest market and leading trading partive some bonuses from the state and lower tax rates in some cases.
• Public support: The EU provides funding in the form of loans and grants to a wide range of projects and programs in areas such as education, health, consumer protection, humanitarian aid and others.
• Profitability: The European Union is a significant contributor to the global economy as the largest market and leading trading partner for 80 countries, which increases revenue.

Among the cons:

• The language barrier. Document flow and communication with clients will require you to know the language, this should be taken into account when opening an office.
• The need for consultation with relevant specialists. We are talking about lawyers, accountants, and so on.

Read also: The State of Ukrainian Outsourcing and Why It's Time To Choose a Ukrainian Company For Your Project

Legal Aspects of Having a Foreign Office

Before you start legalizing your business in another country, do not forget to carefully check the compliance of your preparation for this event.

The legal entity of open the office in Europe for ukrainian representative main aspects:

• rules of taxation, as well as the calculation and payment of wages;
• cost and time of paperwork;
• work with bank accounts;
• rules and features of renting and/or buying real estate;
• the possibility of assessing the potential for growth against the backdrop of investments;
• financial cushion in case of unforeseen circumstances.

How Representative Offices Influence the Provided App Development Services

A representative office is an opportunity to show your unwillingness to enter the market and become a full-fledged participant in the business ecosystem. You can also learn more about the market and avoid any cultural differences or misunderstandings that could prevent a deal from closing.

Another important aspect is the document flow, you are in the same sphere of influence and the conclusion of cooperation agreements takes less time and does not require additional agreements, as, for example, when working with companies located in another country for getting outsource app development services.

From a business point of view, you become a full-fledged competitor in the market, and this increases your importance and authority in the field.

How Representative Offices Influence the App Development Cost

As a market representative, you can provide services at the rate that is relevant for a given country. Based on the quality of your services and understanding of the market, if you are not sure that your level at this stage corresponds to the set rate, reduce it to increase your expertise.

Opening a Representative Office: TopDevs Experience in the United Kingdom

TopDevs already had the experience of organizing a full-fledged company operation in another country, when in 2014 we fled the war for the first time. With the onset of a full-blown war, we turned to securing the team and set about doing what we do best: providing quality development services.

We have opened a branch representative office in the UK, and are already actively expanding the network. Based on our experience, we can say with confidence that the key to success is a high level of communication, which allows you to settle all bureaucratic issues and begin to fulfill your duties to the client.

Read also: Why 90% Of Tech Startups Fail and How an App Development Partner Can Make a Difference

What You Should Know About Cooperation With a Ukrainian IT Company in the UK

Today, many UK companies cooperate with Ukraine based companies, being their clients. In addition to development, this also applies to related computer services. This confirms the recognition of Ukrainian specialists by European countries.

In addition, the UK and Ukraine signed an agreement on the liberalization of trade and the creation of services in the IT sector. This simplifies the mutual access and activity on the markets of each other's countries.

The Final Words

Establishing a separate division of the company in another country can reflect well on your company. You gain brand recognition, expand your customer base and gain unique expertise within your own market.