The global IT industry is constantly evolving, and choosing the right jurisdiction to register a foreign company is crucial for the success of your business. Iryna Kucheryava, who is responsible for the IT sector, analyzed all the cases of our clients and decided to share the TOP-5 jurisdictions for IT companies in 2025, which are popular among our clients.
On the Internet, you can find many ratings and recommendations on choosing a country for doing IT business, for example: "Top 10 jurisdictions for startups", "Top 3 countries for registering an IT company", "Top 6 countries for registering IT companies", etc. Such general recommendations only complicate the choice. In fact, there is no need to look through long lists - five key countries are enough, each of which offers unique advantages for IT business.
Where is the best place to register an IT company? How to start an IT business in 2025? Which country offers the best conditions for startups? Is there an ideal jurisdiction for a tech business? You can spend a lot of time looking for individual answers to these questions or use a ready-made solution from our experts. We have prepared a detailed overview of the five best jurisdictions for IT companies in 2025, explained the key requirements for registration, taxation and business management. And most importantly, we provide comprehensive support and help entrepreneurs start an IT business anywhere in the world.
What to look for when choosing a jurisdiction for an IT company?
Modern IT companies operate in various fields, from software development, financial technologies to artificial intelligence. Nowadays, no business can do without the use of modern technologies (from developing a mobile application or website to implementing AI in the company's daily work). Since IT technologies are so important in everyone's life, registering an IT company is a pressing issue today. There are many factors to consider when choosing a country to register an IT business. What is suitable for your partner may not always be suitable for your business model. After all, each case is individual, and the choice of a country for setting up an IT company depends on the following factors.
Key factors in choosing a jurisdiction for an IT company
Legal regulation
Each country has its own rules for registering, operating and regulating IT businesses. Some foreign jurisdictions for Ukrainian IT businesses provide benefits for technology companies, while others may impose restrictions or complex licensing requirements. Before choosing a jurisdiction for setting up an IT business, it is important to analyse in advance:
- Does it allow full remote management of the company?
- Are there any special programmes to support IT businesses (tax breaks, grants, simplified regulation)?
- Are there any restrictions on the collection, processing and transfer of personal data?
- Do I need to obtain additional permits or licences to provide IT services?
- How flexible is the corporate law for business structuring (e.g., the ability to set up limited liability companies or asset management funds)?
- Is it allowed to attract foreign investment?
- The procedure for hiring employees. Does the country have an obligation to hire only residents?
- Are there any restrictions on working with freelancers?
- Is it mandatory to have a real office in the country of incorporation and what are the requirements for it?
- Are there any special conditions for retaining rights to an IT product?
Our client was planning to open an IT company abroad, as he was interested in moving his family and all employees to another country. The main requirement of the client was the ability to easily obtain a resident visa for relocation. After analyzing all the factors mentioned above, the client chose to register an IT company in the UAE, namely in the Dubai Silicon Oasis free zone. The registration of an IT company in the UAE allowed the client to obtain a resident visa for the owner of the company and his family members, as well as for employees.
Taxation
The main factor when creating an IT company is the tax burden. After all, all entrepreneurs want to work and pay a minimum of taxes. And this is the norm for business, as every business is created to make a profit.
The main taxes to consider when choosing a tax jurisdiction for IT:
- Corporate tax - tax on company profits after deducting all expenses. It can be fixed or progressive.
- Dividend tax is a tax levied on payments to shareholders after the distribution of the company's profits. In some countries, there are reduced rates or complete exemption from this tax. It is important for IT companies working with end users in different countries.
- Royalty tax - levied on payments for the use of copyrights, trademarks, inventions, utility models, industrial designs.
- Payroll taxes and social contributions - applied to employee salaries, as well as payments to freelancers and consultants. And other social contributions paid by the employer and/or employee depending on the jurisdiction.
- Local taxes and fees - may include municipal taxes, license fees and other additional fiscal obligations.
- Availability of tax incentives for IT companies - special regimes for technology businesses, such as tax holidays, reduced rates on intellectual property income (IP Box) or special conditions for startups.
- The possibility of avoiding double taxation - the existence of agreements between countries that allow you not to pay taxes twice when doing international business.
When choosing a jurisdiction to create an IT business, it is important to evaluate all these aspects and choose a country with the most favorable conditions for the operation of an IT company.
Protection of intellectual property
Protection of copyrights, patents, and trademarks is critical for IT companies, especially if the company is engaged in software, mobile applications, or technology development. Every IT company should be sure that the chosen jurisdiction for its IT business has effective mechanisms to combat copyright infringement and illegal use of software. In addition, it is important to know how easy it is to register trademarks and protect your copyrights in the country where you want to register your IT business.
Easy of starting and administering a business
Every business owner expects that an IT company will be registered as quickly as possible without additional obstacles. IT specialists are creative people who prefer modern technologies, the ability to do everything online and manage a company from anywhere in the world. That is why the chosen jurisdiction for setting up an IT business should ensure the convenience of the foreign company registration process and ease of further management.
Our client had been working as a freelancer on the Upwork exchange for several years. The new client clarified that he could not sign a contract with an individual citizen of Ukraine due to the current situation in the country. In order not to lose the contract, the client chose registering a company in England remotely and in a day provided the employer with the company data for the contract. We opened an account in the Payoneer payment system in a few days. Thanks to the online process of registering a company in England, the client did not lose the lucrative contract.
Banking system and access to financial services
In order to run a successful business, an IT company must have convenient access to banking services and financial platforms. In 2025, it will be possible to register an IT company in a few days, while opening a account in a foreign bank or open an account in a payment system is an asterisked question. The specificity of the IT business is that employees/performers can be located all over the world. That is why it is important to find a financial solution that will allow you to quickly and without restrictions accept payments from foreign customers in different currencies, make payments to your employees and freelancers.
The availability of mobile applications for account management, bulk payment options, ordering a large number of cards for advertising campaigns, online invoicing of your customers, and 24/7 access to financial services is critical for it business. After all, working with a bank and payment system should be convenient and up-to-date. That is why modern IT business chooses neobanks instead of classical banks with a conservative approach to customers.
Popular payment systems for IT business among our customers:
- Payoneer (USA)
- Unlimit (Cyprus)
- Transferra (UK)
- 3S Money (UK)
- Bankera (Lithuania)
- Satchel (Lithuania)
- Paysera (Lithuania)
These payment systems understand the specifics of IT companies and offer a wide range of functionality for IT business, e-commerce and other digital companies.
TOP 5 JURISDICTIONS FOR IT BUSINESS IN 2025
№1 - United Kingdom (England)
Benefits of registering an IT company in England:
- It is among the TOP countries for registering an IT business
- London is a center of international finance, which makes it easier to enter the European market.
- Low company registration costs
- There are no requirements for a real office in the country
- Fully remote company registration procedure, without the use of powers of attorney and the provision of notarized copies of documents. The whole process of client identification is automated.
- English company documents are available online in the state register
- Convenient taxation system for technology startups (for example, a reduced tax on innovation - R&D Tax Credit).
- The ability to open an account in payment systems and foreign banks
- The ability to quickly close a company
Disadvantages of registering an IT company in England:
- Corporate tax is 19% (or 25% for profits over 50,000 GBP)
- Lack of actual ability to open an account in an English bank
- High prices for accounting services and auditing
- Difficulty in obtaining Tax Residence certificate;
Maira Consult case
Ukrainian entrepreneur Oleksandr, who develops software for IP telephony, chose to register a company in England, as this option was the fastest and cheapest for him. Oleksandr works as an individual entrepreneur in Ukraine, but has many customers from the UK and the EU. It was convenient for his English customers to pay their invoices in pounds. In order not to lose money on currency conversion, we advised him to open an English company and a corporate account in the British payment system in pounds. As a result, Alexander started an IT business in 2025 on behalf of an English company.
№2 - Estonia
The advantages of registering an IT company in Estonia:
- 0% tax on reinvested profits
- Possibility of remote registration of an Estonian company through e-Residency
- Simplicity of company administration
- No requirements for a real office
- Tax number is the company's registration number
- Obtaining a Tax Residence certificate in a few days
- Low company registration costs
- Ability to account for cryptocurrency assets in financial statements
Disadvantages of registering an IT company in Estonia:
- Estonian banks do not open accounts for non-residents
- Changes in the Estonian tax system for 2025 - 2026 Corporate profit when distributing dividends 22%. From July 1, 2025, a 2% security tax will be added, which will increase the total burden to 24%
Maira Consult Case
Ivan created a blockchain platform for transferring assets into digital tokens. Estonia was chosen precisely because Estonian accountants have experience in reflecting crypto assets in financial statements, which is important for future investors of the client's company. The client's team works remotely, and the Estonian company serves customers around the world.
№3 - USA
The advantages of registering an IT company in the USA:
- Ease of company registration
- Possibility to change the organizational and legal form of the company
- Access to the largest technology market and investors
- Registration of an IT company in 2025 in the United States increases the status of the company
- Delaware offers a low tax for LLCs and C-Corps, popular among startups.
- Proximity to Silicon Valley and other tech hubs
- No VAT
- One of the best foreign jurisdictions for Ukrainian IT business
Disadvantages of registering an IT company in the United States:
- High taxes: federal income tax - up to 21%, plus state taxes.
- High costs for obtaining tax advice
- Difficulty in opening an account in a US bank for non-residents
Maira Consult case:
Our client has developed a platform - an analogue of a tax calculator for calculating sales tax in different US states. We fully supported the process from the company's registration in Delaware to the development of relevant legally significant documents, including SaaS Agreement, Privacy Policy, and Terms of Conditions. The account was opened in PayPal and Payoneer payment systems. Additionally, the client opened a account with Bank of America, as the company's COO moved to the United States and was able to visit a bank branch.
№4 - Romania
The advantages of registering an IT company in Romania:
- Low taxes (corporate tax 1%, 3%, 16%)
- Possibility to obtain a residence permit
- Quick and inexpensive company opening
- Possibility to open a Romanian bank account in just 1 visit
- No sub-state requirements
- Micro enterprises can pay 1-3%
Disadvantages of registering an IT company in Romania:
- Language barrier
- In order to fully operate, VAT companies in most cases need to have a real office
- In order for a company to have the status of a microenterprise, it is mandatory to pay a salary to the director.
Maira Consult case:
We opened a company in Romania for a mobile application developer, as his company is a startup with low turnover. Also, it was important for the client to officially receive money from this company, as this is the only source of income for the client. The 3% income tax, official salary, and a local bank account were the final criteria for the client to choose a firm in Romania.
№5 - United Arab Emirates (UAE)
The advantages of registering an IT company in the UAE:
- Existence of specialized zones with preferential conditions for IT business (for example, Dubai Internet City, Dubai Silicon Oasis, Sharjah Research Technology and Innovation Park).
- High level of confidentiality.
- Possibility of obtaining long-term resident visas for business owners and employees
- Convenient location between Europe, Asia and Africa
Disadvantages of registering an IT company in the UAE:
- High cost of doing business - office rent, license and company maintenance are more expensive than in many other countries. It is possible to register an IT company in 2025 from 10,000 USD.
- Mandatory physical address - even IT companies need an office, which increases costs. Banks have strict requirements for companies without a physical presence in the country and are not interested in clients with small turnovers.
- Expensive costs for preparing and submitting financial statements and auditing companies.
Maira Consult Case
The main goal of our client, who develops technologies for data analysis and processing, was to enter the Saudi and UAE markets. The client already had a Polish company, but the Polish bank was accepting payments from the UAE with delays. The client wanted to create convenient conditions for its regular customers and attract new ones. We offered the client a comprehensive solution for setting up a business in the UAE. Immediately after the company was registered in the UAE, we opened an account in the UK payment system. It took 3 months to open an account in a UAE bank, but we managed to cover all the client's needs.
Tip from a Maira Consult expert
There are many foreign jurisdictions for Ukrainian IT business. If you are just starting to work and enter the international market, we advise you to consider registering a company in England or opening a company in Estonia and opening an account in the payment system. If your startup has a small turnover, but it is very important for you to have an account in a local bank, choose to register a company in Romania, as these are the best jurisdictions for IT business and startups.
We recommend opening a company in the Emirates only for those who have a stable business and are ready to bear regular expenses for company support. After all, registering a company in the UAE on a turnkey basis, opening an account in UAE banks, obtaining a visa - all this can cost 20-30 thousand US dollars.
Always analyse your real needs and don't compare yourself to your competitor who has been in business for many years. You have everything ahead of you! To start an IT business in 2025, you don't need complicated schemes, you just need to choose the right country of registration for your IT company at the beginning.
Our team has many years of experience in registering and supporting IT companies in different countries. We will help you choose the best country to register your IT business in, taking into account your business goals, tax aspects and regulatory requirements.
