Question 1

Should an IT company join Diia.City?

Accepted Answer

Diia.City offers significant benefits for eligible IT companies: 9% Withdrawn Capital Tax (WCT) instead of 18% personal income tax + 22% unified social contribution, legal Gig-contracts — more flexible than employment contracts, legally enforceable NCA (Non-Compete Agreement). Mandatory entry criteria (2026): 1) Must be an IT/tech company; 2) Minimum staff — 9 specialists (gig or employed); 3) Average specialist salary — at least €1,200/month; 4) At least 90% income from IT activities; 5) Prohibition of related party schemes. O'LAW attorney analyzes your business model to determine if the transition is beneficial and safe.

Question 2

Why doesn't a standard service contract work for IT specialists?

Accepted Answer

Three critical IT-specific risks: 1) Code copyright — by law rights arise in the developer-author. A standard service contract without IP Assignment clause doesn't give the company code ownership; 2) NCA — in general civil law, non-compete agreements are very hard to enforce. In Diia.City there is a special mechanism; 3) Definition of Done — without a clear result description, product quality disputes arise. O'LAW SDA (Software Development Agreement) or MSA (Master Services Agreement) closes all three risks.

Question 3

How to protect code ownership rights?

Accepted Answer

IT company IP protection complex: 1) All developers (employed, FOP, Gig) sign an IP Assignment Agreement — document transferring exclusive economic copyright to the company; 2) Employment contracts for staff developers include a 'work made for hire' clause (Art. 16 Copyright Law); 3) For FOP — IP Assignment in the service contract (Art. 1107 CC); 4) NDA for all with access to source code; 5) Git-commit policy — each commit documents who authored which line. O'LAW attorney sets up this process turnkey.

Question 4

Is GDPR required for a Ukrainian IT company serving EU clients?

Accepted Answer

Yes, mandatory. GDPR (EU Regulation 2016/679) applies to ANY organization processing EU citizens' personal data, regardless of company location. Fine for violation: up to €20 million or 4% of global annual turnover. Minimum GDPR package for IT company: Privacy Policy, Cookie Policy, Terms of Service, Data Processing Agreement (DPA) with EU clients, Record of Processing Activities (RoPA), data subject request response procedures. O'LAW attorney develops the full GDPR package.

Question 5

How to prevent a developer from working for a competitor?

Accepted Answer

Two approaches: 1) Diia.City NCA Gig-contract — the only legally enforceable mechanism in Ukraine for non-compete, court-confirmed. Can restrict working for competitors for up to 2 years in a defined geography/sector; 2) General civil law — NDA with penalty clauses for disclosure and use of trade secrets. A direct prohibition on working for competitors in general law is more challengeable. O'LAW attorney builds a protective structure for specific circumstances.

Question 6

Does copyright protect a startup idea?

Accepted Answer

No. CC Art. 434 — copyright only covers the form of expression (code, design, text), not ideas, methods, principles. What can be protected: code — copyright; algorithm — trade secret + NDA; name and logo — trademark at UkrNOIVI; unique technical solution — utility model patent (rare). To protect an idea during investor/partner negotiations — mandatory strict NDA before any disclosure.

Question 7

How to structure an IT company for foreign investment?

Accepted Answer

For foreign fund investment, a recognized jurisdiction is needed. Popular options: 1) Delaware C-Corp (USA) — standard for Silicon Valley and US venture funds. SAFE agreements, convertible notes; 2) Estonia OÜ/AS — convenient for EU operations, e-Residency; 3) Flipkart-style structure — EU or Delaware holding with Ukrainian subsidiary (for the team). In any structure: IP Holding (IP rights in holding company), stock distribution via ESOP/vesting, shareholder agreement (SHA). O'LAW attorney structures for specific round and investors.

Question 8

How much does IT legal support at O'LAW cost?

Accepted Answer

Depends on service: one-time consultation — basic rate; one contract (NDA, SDA, MSA) — mid-range; GDPR package (Privacy Policy, ToS, DPA) — mid-range; Diia.City analysis and setup — mid-to-upper range; corporate structure for investment — top tier; IT company monthly retainer — fixed monthly fee. O'LAW attorney announces exact cost at consultation.

You Write the Code — We Write the Rules

Top 5 Legal Mistakes IT Companies Make

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Contracts: SDA / MSA / SaaS

IP Protection: code, algorithm, brand

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Phone

+38 063 404 67 68

+38 068 679 52 51

Telegram

t.me/olaw_help

Address

32 Doroshenka St., Lviv

IT Lawyer in Lviv: IT Company Support, Diia.City, GDPR and Contracts