What documents and agreements needed for IT companies in Ukraine

If you're an IT company planning to establish or operate in Ukraine, it's crucial to understand the legal requirements and agreements you need to have in place. This will help ensure your business operates in compliance with Ukrainian laws and regulations. Here are some of the documents and agreements that IT companies in Ukraine need:

Company registration documents

Before starting operations in Ukraine, IT companies must register their business with the authorities. This includes obtaining a tax identification number (TIN) and registering with the State Registrar of Legal Entities, Individual Entrepreneurs, and Public Associations.

Employment agreements

IT companies need to have employment agreements in place with their employees. These agreements should include the terms of employment, such as salary, benefits, and working hours. It's important to note that Ukrainian law sets minimum requirements for employee compensation and benefits.

Non-disclosure agreements (NDA)

IT companies often work with sensitive and proprietary information. Therefore, it's crucial to have NDAs in place to protect the company's confidential information and trade secrets. NDAs should clearly define what information is considered confidential and the consequences of breaching the agreement.

Intellectual property (IP) agreements

IP agreements are necessary for IT companies that create software, develop applications, or provide other technological services. These agreements should clearly define the ownership and use of IP created by employees and contractors. It's also important to include provisions for protecting the company's IP from infringement or misuse.

Service agreements

IT companies that provide services to clients should have service agreements in place. These agreements should specify the scope of services, the timelines, and the fees for the work. They should also include provisions for terminating the agreement and resolving disputes.

Partnership agreements

IT companies that partner with other businesses or contractors need to have partnership agreements in place. These agreements should define the roles and responsibilities of each party and the terms of the partnership. They should also include provisions for managing conflicts and terminating the partnership.

Related article: How to start your IT business in Ukraine?

Types of agreements between IT company and it's employees in Ukraine

In Ukraine, the relationship between IT companies and their employees is governed by several types of agreements. These agreements are designed to protect the interests of both parties and to ensure that the rights and obligations of each are clearly defined. In this article, we will explore the different types of agreements that are commonly used in the IT industry in Ukraine.

Employment Agreement

An Employment Agreement is the most common type of agreement used by IT companies in Ukraine. This agreement sets out the terms and conditions of employment, including the job description, salary, working hours, and other benefits. The agreement also outlines the rights and obligations of both the employer and the employee, as well as the conditions under which the agreement can be terminated.

Confidentiality Agreement

A Confidentiality Agreement is a contract that obliges employees to maintain the confidentiality of sensitive information related to the company, its clients, or its partners. This agreement is designed to protect the company's intellectual property and trade secrets from being disclosed or used by competitors or unauthorized individuals.

Non-Disclosure Agreement

A Non-Disclosure Agreement (NDA) is a legal contract that restricts employees from disclosing confidential or proprietary information to third parties. This agreement is often used by IT companies to protect their confidential information, such as source code, software architecture, or business plans.

Employee Stock Option Agreement

An Employee Stock Option Agreement (ESOP) is a contract that grants employees the right to purchase company shares at a predetermined price. This agreement is often used as a form of incentive to retain key employees and align their interests with those of the company.

Freelance Agreement

A Freelance Agreement is a contract between the IT company and an individual contractor, rather than an employee.

Non-Compete Agreement

A non-compete agreement is a type of agreement that restricts an employee's ability to work for a competitor of the IT company. This agreement is usually signed at the beginning of the employment relationship and can be for a specific period after the employee leaves the company. The non-compete agreement is designed to protect the intellectual property and trade secrets of the IT company.

Related article: Register an IT company in Ukraine with Diia City

Types of agreements between IT company and it's clients in Ukraine

In Ukraine, IT companies enter into various types of agreements with their clients to provide IT services or products. These agreements specify the terms and conditions of the project, including timelines, costs, deliverables, and the responsibilities of both parties. In this article, we will discuss some of the most common types of agreements between IT companies and their clients in Ukraine.

Service Level Agreement (SLA)

The SLA is a type of agreement that defines the level of service that the IT company will provide to the client. It specifies the scope of the project, response times, uptime guarantees, and other metrics related to the quality of the service. The SLA is usually signed at the beginning of the project and provides a framework for monitoring and measuring the performance of the IT company.

Master Services Agreement (MSA)

The MSA is a type of agreement that governs the overall relationship between the IT company and the client. It outlines the general terms and conditions of the relationship, including billing, liability, and intellectual property rights. The MSA is often used as a template for subsequent projects, with individual project agreements executed under its terms.

Project Agreement

The project agreement is a type of agreement that specifies the scope, timeline, and cost of a specific project. It outlines the responsibilities of both the IT company and the client and provides a framework for managing the project. The project agreement may reference the MSA for general terms and conditions.

Software License Agreement

The software license agreement is a type of agreement that specifies the terms and conditions for the use of software developed by the IT company. It outlines the licensing fees, restrictions on use, and warranties related to the software.

Consulting Agreement

A consulting agreement is a type of agreement that outlines the terms and conditions of the consulting services provided by the IT company to the client. It includes details on the scope of work, timelines, and pricing, as well as the responsibilities of both parties. The consulting agreement is designed to ensure that the client receives the consulting services they require and that the IT company is compensated fairly for their work.

Basically, for the full-fledged work of an IT company in Ukraine, you must operate with at least a dozen contract templates, modifying them for each specific situation. Contracts can be expanded, changed, made more profitable for you, etc.

For such work, you must either have an in-house lawyer or a reliable legal outsourcing partner.

We are just such a partner for many IT companies in Ukraine. If you also want to receive services for your IT company, please contact our specialists.