Top 3 Reasons To Open A Research And Development Center In Ukraine


Establishing a research and development center usually comes with huge risks and costs. Ever since one has started developing an R&D center in different countries, it has resulted in adding more success to many tech companies. In the case of countries like Ukraine, many R&D centers have already flourished here and proven to be excellent to conduct future research for both locals as well as international tech companies. 

In this article, we shall highlight the top reasons to set up new research and development center in Ukraine in detail. So, let’s get started!

Why should you open a Research and Development center in Ukraine

  • Home to Giant tech companies and a huge talent pool

With top companies such as Oracle, Siemens, Snapchat, Opera, and Ericsson already holding a place in Ukraine, it is time to get at least one of your businesses in Ukraine. There are a myriad of product design companies as well that are spreading their base. Just like other countries, Ukraine also has a plethora of talented pools of human resources. 

Since there are many developers or tech specialists with expert-level information, it is so easy to run the R&D center smoothly. From being well-versed in both written and spoken English, they can share all the client requirements without any hassle. Not only this, the freedom of speech to converse with employees from different countries makes it quite advantageous for you. 

Moreover, as Ukraine covers a large area, it has over 45 million residents with expertise in multiple programming languages. All the top companies hire them exclusively, which has led to a reduction of the company’s expenditure and high-cost efficiency. All this also opens the gates of higher future growth with better payouts year after year.

  • Low costs associated

With cheaper costs, all R&D centers witness the top reason to run an R&D center in Ukraine. Coupled with a simplified tax system and maintenance cost makes it extremely easier to run an R&D center efficiently in Ukraine. This is also true for all bootstrapping startups, as they can easily begin operations with an R&D team of 30 members working full-time. It is considered to be a great choice to invest in such startups as well. 

  • More branding opportunities

Opening a research and development center can extend your reach to newer markets which also means increasing the brand reach offshores. Since it helps in preserving the brand identity, it also gives a chance to enhance their respective brand awareness and even pitch for more money from investors. It is considered quite beneficial as there are no 3rd parties involved. With your personalized office, there is more room for attracting exceptional talent as well as perform employer branding. 

Top 3 Tips to easily set up an R&D center in Ukraine

Given below are some of the best tips to establish an R&D center in Ukraine:

  1. Hire a reliable lawyer: Although you know that there is no unnecessary hassle of opening an R&D center in Ukraine, it is still best to hire a deemed lawyer who can help you in deciding the right legal ways to maximize your Return on Investment. He will share all the top available options for non-residents or foreigners that serve well with the existing business plans. Don’t worry; the total cost of law consulting is quite lower in Ukraine than in any other country.
  2. Opting for a business entity: You can find the different types of business entities be it, sole proprietorship, representative or local branch, or an open joint-stock company. It all depends on all the types of taxes or fees paid, the way different specialists are hired, or the ways of sending and withdrawing money. Knowing all the details of these types of business entities will provide a clear idea of how you can apply for your recommended business entity. 
  3. Tax system of Ukraine: Know about all the intricate details of the tax system of Ukraine. The best part here is that you may only have to pay a flat 15% income tax in case all the business entities get eligible for the simplified tax system. With 18% corporate income tax, there is 15% tax interest and dividends. Moreover, the deduction made from every employee’s salary for contributing to unified social security is 22%.

As the registration gets completed, one can move ahead and start with the planning of the R&D center. 

The Bottom Line

Now that you are well-versed with all the main reasons for creating a new R&D center in Ukraine, it is time to go through all the legalities and other essential details about setting up the center in Ukraine. Also, you must establish your budget and hire teams to kickstart the development process right away!

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