Various countries in the world are offering huge benefits to developing IT companies. The question is how to choose the best one from a list of so many countries? Sergey Kartashov, the CEO of Generation Partners, expresses his views to guide IT companies looking for relocating their business.
Countries With Benefits for Developing IT Companies
Sergey Kartashov (Sergejs Kartasovs) says that countries are divided into various categories based on their ability to protect intellectual property (IP). The main aim of a relocating company is to get extraordinary IP protection. The United States of America, Germany, the Netherlands, Estonia, Lithuania, and Cyprus are the top countries in the world in this regard. These countries come in category A. In category B, you will find countries like Poland, Portugal, and the Czech Republic.
“Companies are moving to places where their work will be protected first of all and where the project team can comfortably find accommodations,” says Sergey Kartashov. Cyprus is a well-suited country for game development companies. Berlin is a preferable location for companies dealing with machine-learning. Estonia is a country that provides ease and comfort to IT companies in terms of their registration. Estonia has a completely online company registration mechanism. Israel, Latvia, and Malta were once favorable IT development locations. However, they have lost their abilities in this regard.
Why Do IT Companies Think About Relocation?
There are various reasons that push IT companies towards relocation. The most important reason is getting an environment where they get complete IP protection. Some IT companies become a member of a better IT community. Tax benefits also play a crucial role in this regard, however, they are not the main reason.
“Another important factor is the flight time to the home country and the key locations important to the business,” says Sergey Kartashov. Business infrastructure is another factor in this regard. Many companies think about relocation to get an environment where they can perform their financial and economic activities with freedom and ease. Countries with simple financial regulations are always the best choice. Some subjective factors also come into account including venture funds and angel investors. Some companies relocate to get a better cultural environment that meets their mentality.
Important Consideration for Relocation
Sergey Kartashov explains what companies should take with them to the country where they want to be relocated. The first thing is to take a good HR manager with them. It will help them to hire more local talent at a reasonable cost. It is certainly not the right choice to move a huge amount of workers from the home country. “‘Dividing a team between two countries is also a common situation,” says CEO Generation Partners. A company can move only a part of its business to another country while operating the other part in the home country. However, different businesses have different requirements. The managers should take a decision related to the relocation of the IT business wisely.
IT companies should have friends and people in the country where they want to be relocated. They will help the company to go through the registration process quickly and efficiently. A new company has to go through various processes to establish its business in a new country. It is certainly better to have a helping hand in this regard.