The IT industry has been growing rapidly across the world, and Ukraine despite the Russian invasion, is no exception. With increasing advances in technology, IT companies flourished in the country, by setting the scene for an innovative framework with the launch of Diia City.
Diia City, launched in October 2020, is an electronic IT park framework for the Ukrainian IT industry, allowing IT companies to exist outside of a physical location or offices. With the increasing spread of digital technology, this framework provides the necessary infrastructure and support to enable IT companies to create natural products and services.
By February 22, 2022, just two days before the start of the Russian full-scale invasion, 74 companies had already become its residents. On February 28, several days from the start of the invasion, new residents were admitted. As of October 2, 2022, the register of Diia City contains 368 companies.
The advantages of this IT park framework are significant. It is the first of its kind in Ukraine, setting the benchmark for a tech-friendly business environment. By regulating the IT industry across the country, the platform ensures the industry remains competitive and streamlined. Additionally, the framework ensures any new or existing IT companies have access to an infrastructure of regulatory, compliance and tax services, allowing them to conduct business with ease.
It also provides resources to help IT companies enter the global market in terms of development, support and expansion. The framework includes a global network hub, enabling IT companies to access resources from around the world. This includes the ability to connect with other IT professionals, facilitating innovation exchange, and access to potential partners and customers.
The Diia City framework is based on three main principles:
- providing a secure and streamlined environment for the IT industry,
- creating a globally integrated platform for IT companies to do business,
- and enabling a tax-friendly environment.
All of these are geared towards establishing an environment that accommodates the needs of the IT industry in Ukraine.
In addition to the aforementioned benefits, Diia City simplifies the compliance and legislative processes when establishing an IT company in Ukraine. Under the Diia City framework, there is no need to set up a physical premises or company headquarters. This helps to reduce the administrative burden of establishing a company, reducing costs and increasing time efficiency. Furthermore, companies can access a suite of regulatory and tax services available online.
The Diia City framework was an exciting development for IT companies in Ukraine. Not only that it provides administrative, regulatory and tax-related benefits, it also opens up numerous opportunities to create, develop and expand business operations in the country.
With the potential to connect with international partners and customers, the platform was a ground-breaking step in the development of the Ukrainian IT industry and hopefully will develop further despite the war.
Read further about:
Diia City – https://city.diia.gov.ua/
Diia app for residents – https://ukraine.ua/invest-trade/digitalization/
Leinonen Ukraine: https://leinonen.eu/ukr/
