How to Open an IT Company From Scratch?

Information technologies are vital in developing businesses, government structures, and society in the modern world. The demand for IT services grows yearly, making this area attractive for entrepreneurs. This article will look at the main steps and recommendations for starting your own IT company from scratch.

Opening an IT business is a promising direction for those who want to work in information technology and influence the industry’s development. However, starting an IT company requires careful planning, market analysis, and a willingness to overcome challenges like any other business.

We will examine all the stages of creating an IT company, from choosing a niche to registering a legal entity and finding clients. We aim to help aspiring entrepreneurs understand the intricacies of starting an IT business and make this process as efficient and effective as possible.

How to choose a niche for an IT company

Choosing a niche for an IT company depends on many factors, including your skills, resources, market trends, and customer needs. Here are a few steps that can help you decide on your choice:
1. Market analysis
Study the information technology market to determine which areas are most in demand. This can include software development, web development, cloud technologies, artificial intelligence, machine learning, etc.
2. Defining your competencies
Evaluate your skills and experience in various areas of information technology. Choose the direction in which you feel most confident.
3. Competitor Research
Analyze your competitors to determine which niches are already occupied and still vacant. Pay attention to their strengths and weaknesses.
4. Study customer needs
Identify the challenges your potential customers are facing and think about how your company can help them solve these problems.
5. Resource assessment
Evaluate what resources (financial, human, and technical) you have to develop your chosen field. Make sure that you have enough resources to compete successfully in the market.
6. Flexibility and adaptability
Be prepared for changes in the market and adapt your strategy to new trends.
7. Consultation with experts
Contact information technology specialists or business consultants for more precise information about your niche selection.
8. Testing and analyzing results
Before choosing a niche, do some market research and analyze the results. This will help you ensure that your choice is correct.
It is important to remember that choosing a niche takes time and effort. Conducting a thorough analysis and making an informed decision that matches your goals and capabilities is essential.
To get an opportunity to become a resident of the High-Tech Park of Belarus in the future, we recommend choosing a niche from the list of activities that the state has defined for residents of the High-Tech Park.

What does it mean to create an IT company?

An IT company in Belarus is considered established from the date of its state registration. Companies are registered with the territorial registration authorities at their location: district and Minsk city executive committees.

State registration is confirmed by a document issued by the registration authority to the company, called a Certificate of State Registration. At the same time as state registration, companies are assigned a taxpayer registration number (UNP).

An entry in the Unified State Register of Legal Entities and Individual Entrepreneurs (USR) confirms a company’s official registration for a wide range of individuals. You can use the taxpayer registration number to verify that the company is actually registered in the USR.

How to prepare for state registration of an IT company

Before submitting documents to the registration authority for state registration of an IT company, you must prepare some documents and determine the company’s location.

Step 1. Determine the company’s location

It is essential to determine the location of the company first of all for the following reasons:

• The company’s location must be specified in the company’s charter. 
• For state registration of an IT company, you must contact the territorial registration authority to which the selected address belongs. After state registration, the body enters the company’s address in the Unified State Register of Legal Entities.
• The company’s location is also called its “legal address.” In the future, it will be written in official documents and contracts that the IT company enters into.
• The legal address can be obtained, for example, by renting a space in a business center or buying a space in a property. In the case of a lease, the property owner guarantees the conclusion of a lease agreement after the company is registered.

Step 2. Define the company form

In Belarus, you can register a company in several legal forms:

• A Limited Liability Company (LLC).
• An Additional Liability Company (ODO). 1 person (company) can open an LLC and an ODO, and the maximum number of LLC and ODO owners is no more than 50.
• Joint-stock company (closed (CJSC) or open (JSC)).
• A unitary enterprise (a company with one owner).

Before state registration of a company, you need to decide on the company’s form, as indicated in the charter and in the Unified State Register of Legal Entities.

Step 3. Determine the ownership structure

To create an IT company (except for a unitary enterprise), it is necessary to determine the owners and distribute shares among them in the future company’s authorized capital (shares). Such information will need to be included in the company’s charter. In addition, if one of the owners (the sole owner) is a foreign company or an individual foreigner, you will need to collect in advance and translate into Russian some documents necessary for the state registration of an IT company
Individual owners should not have criminal records for certain crimes, debts to creditors, or shares in bankrupt companies.
Owners companies should not be in the process of liquidation or bankruptcy or have outstanding debts.

Step 4. Determine the size and composition of the authorized capital

The authorized capital is required for each company, except for a unitary enterprise. The state requires all companies to create a statutory fund as a guarantee for creditors. Owners create the authorized capital from money and /or other property, securities, and rights that can be valued in money.

The minimum size of the authorized capital in Belarus is determined only for joint-stock companies: for CJSC, it is 100 basic units (4000 Belarusian rubles or approximately 1099 euros) and for JSC, 400 basic units (16000 Belarusian rubles or approximately 4400 euros). Owners of other companies themselves determine the size of the authorized capital.

The size of the authorized capital is specified in the company’s charter. The authorized capital is not always paid in before the company’s state registration. Usually, it can be paid in full within a year after registration.

Step 5. Agree on the company name

Belarus has a procedure for approving the company name to protect the market from business entities with the same name. The name must include the company’s form (LLC, OJSC, etc.). We recommend that you list possible names and check them for duplicates online. It’s free.

The selected name can be agreed upon with the registration authority online. The approval document must be printed out for the registration authority. The company retains the agreed name for one month. 

Step 6. Determine who will be responsible for registering an IT company

The future owner of the company can deal with the issues of opening a company himself:

• Interact with landlords.
• Draw up the necessary documents.
• Communicate with the registration authority.

When a future company has several owners, they can choose who will manage the business related to its registration. Another option is to contact a company that deals with issues of state registration of businesses or a lawyer.  

Step 7. Prepare a decision on opening a company and the charter

The registering authority for the company will require the decision on the establishment of the company and the charter. Lawyers usually compile these documents.

Step 8. Submit documents for state registration of an IT company

A person identified by the owners (they are called “founders”) of the company or a law firm’s representative sends documents for company registration to a notary or to the registration authority. State registration is paid: you must pay one basic amount- 40 Belarusian rubles or about 12 euros).
Please fill out an application for state registration at the registration authority.

Step 9. Get a certificate of state registration

The state registration process is fast: the certificate of state registration is issued to the company’s representative no later than the next business day after transferring documents for state registration.

Step 10. Appoint a company manager

If a company has hired a manager or entered into a contract with a management company, please notify the registration authority within ten days.

Step 11. Get state registration documents

You will have to go to the registration authority for a document that confirms that the company is a taxpayer and registered with the Social Protection Fund, statistics agencies, and Belgosstrakh.

How an IT company can find customers

Here are some ways that can help IT companies find customers:
1. Creating a high-quality and informative website.
The site should be user-friendly and contain detailed information about the company, its services, and prices. You can also post customer reviews and portfolios of completed projects on the site.
2. Search Engine Promotion (SEO).
SEO is a set of measures designed to increase a site’s visibility in search results for certain keywords. This can lead to an increase in organic traffic to the site and, as a result, attract new customers.
3. Contextual advertising.
Contextual advertising is ads served to users based on their interests and search queries. Contextual advertising can effectively attract potential customers, but it requires careful planning and optimization.
4. Advertising in social networks.
Social media is another channel for attracting customers. Companies can create ad campaigns that target a specific audience or interact with potential customers through their pages and groups.
5. Participation in industry events and conferences.
Participation in such events allows companies to demonstrate their skills and experience and establish contacts with potential partners and customers.
6. Cooperation with partners.
Partnering with other companies working in a related field can lead to joint projects and attract additional customers.
7. Use of content marketing.
Creating valuable and exciting content, such as articles, videos, podcasts, etc., can attract the attention of potential customers and increase brand awareness.
8. Competitor analysis.
Studying your competitors ‘ activities can give you an idea of their methods for attracting customers and what you can do better.
9. Work with promotion agencies.
Promotion agencies can offer a more professional approach to marketing and advertising, leading to more effective customer acquisition.
It is important to remember that customer search is a continuous process that requires time and effort. However, with the right approach and strategy, it can become a source of a stable flow of new customers for your IT company.

What are the advantages of IT companies in Belarus?

After state registration, IT companies can become residents of the Belarusian Hi-Tech Park. And it doesn’t matter where the company is registered geographically in Belarus; you won’t need to move. Residency in the Hi-Tech Park gives IT companies several advantages over other companies. In particular, these are reduced tax rates or no tax, several benefits when hiring employees and importing equipment, no formalities when entering into contracts with foreign business partners, and tax benefits when distributing profits (paying dividends).

To become a resident of the Hi-Tech Park, you must develop a business project and present it to the Hi-Tech Supervisory Board for approval.