Publication date: 14.04.2025
My name is Sirenko Mykola Serhiyovych, I am a lawyer from Kyiv. My key areas of work are international corporate law, fintech, and legal support for businesses in the EU and Asia.
Client: A company specializing in subscription sales and referral systems
Goal: Expanding to new markets (China, Asia, and other countries), launching new digital products, tax load structuring, and legal structuring of new business processes
Client Inquiry
On July 11, 2024, we were contacted by an IT company that developed an innovative mobile app for managing subscriptions and referral systems. The app enables users not only to activate services via subscription but also to receive bonuses for referrals. The product had already been successfully tested in the local market, and the client had a clear vision of scaling into the Asian region—particularly China, Southeast Asia—as well as English-speaking countries.
The client’s main objectives were:
- optimization of tax burden when entering new markets;
- launching new digital products while complying with each jurisdiction's legal requirements;
- building a business model that allows scalable growth with minimal legal risks.
After the initial meeting, we agreed on a draft technical specification and the format of collaboration.
Work Stages
July 22, 2024 — Contract signed and work commenced.
Following a series of negotiations, we signed a legal services agreement. At the same time, the client approved the final version of the technical specification, based on which our legal team began developing tax and corporate strategies.- July 25, 2024 — Initial consultation.
The first consultation round was held, and we provided preliminary analysis on business operation options across different jurisdictions. We explained how international entities could be used to manage revenues from subscriptions and referrals, optimize taxation, and simplify banking operations. - July 31, 2024 — Legal opinion and recommendations.
We delivered a comprehensive legal opinion on the taxation of activities based on the subscription and referral model. It included tax implications in key partner countries, and various options for contract structuring with both users and business partners.
We also proposed several scenarios for creating new legal entities in Hong Kong, Singapore, and the UAE, as well as collaboration with Chinese distributors through partner agreements.
- August 5, 2024 — Extended cooperation.
The client was satisfied with the results and decided to continue cooperation. A supplementary agreement was signed for one-month legal support with a fixed number of consultation hours, covering operational matters and the launch of new services.
Result: By the end of the main project phase, the app was already operating with new users outside Ukraine. Installed payment gateways complied with local regulatory requirements, and the tax burden had been significantly optimized. The company developed a plan to enter the Chinese market through a local partner with a registered office. The client received not only a legal foundation for scaling but also a clear roadmap for further action.
This case exemplifies how high-quality legal support can help an IT company confidently enter international markets while staying compliant with regulatory norms and optimizing tax liabilities.
