The Ministry of Digital Transformation of Ukraine is launching a closed beta test of the e-residency program to make it easier for foreigners to do business in the country. This is an important step in the implementation of an innovative approach to doing business. Find out more about when and for whom the program will be available

Legal advice on starting a business in Ukraine

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The Ministry of Digital Transformation has launched a closed beta test of an electronic residency program called uResidency to improve the conditions for foreign business in Ukraine. This was reported by the press service of the Ministry of Digital Transformation.

Read more about the peculiarities and benefits of starting a business in Ukraine here.

Electronic residency program: what is known

It is noted that the initiative provides an opportunity for citizens of other countries to register their business in Ukraine and manage it from anywhere in the world. All stages - from applying for e-residency status to paying taxes - will be carried out online.

For Ukraine, the uResidency program opens up new prospects, such as tax revenues to the Ukrainian budget from e-residents, development of the banking sector by scaling digital products to international markets, additional opportunities to attract investment and increase positions in international rankings on the ease of doing business in the country.

Special emphasis is placed on small business owners from Asia and Europe, in particular IT professionals and specialists in the creative economy.

After the successful completion of beta testing, the e-residency program will be available to citizens of the pilot four countries: India, Pakistan, Thailand, and Slovenia.

How will e-Residency work?

The Verkhovna Rada supported the draft law on the introduction of the e-Residency program in October 2022. According to this, the algorithm for obtaining e-residency status includes:

1. Registration of a specialist through the E-Residency system in Diia, passing financial and security checks

2. Obtaining an electronic digital signature

3. Opening a remote account with a bank that acts as a tax agent for an e-resident

4. Work and payment of taxes - 5% of income within the limit of the 3rd group of individual entrepreneurs, and if it exceeds the limit - at a rate of 15%.

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Who cannot obtain e-residency status?

According to the law, persons who cannot be e-residents are:

• Foreigners with the right to permanent residence in Ukraine or who are tax residents of Ukraine: the restriction is aimed at those who already have a stable status or tax ties in the country.

• Stateless persons: persons who do not have citizenship of any country cannot become e-residents.

• Persons who receive income from Ukraine for goods, works, services (except for passive income): this restriction may apply to persons who already have business or financial relations with Ukraine.

• Persons whose citizenship or residence is in countries not included in the list of countries covered by the program: E-residency is limited to citizens or residents of certain countries.

• Citizens of Ukraine: The internal restriction is that citizens of the country itself, i.e. Ukraine, cannot be e-residents.

These restrictions are intended to define clear parameters for obtaining e-residency status and to ensure the effective functioning of the program.

To order a consultation on business registration in Ukraine or full legal support, please follow the link.

We remind you! An identification code is an important document, because without it, it is impossible to buy real estate, open a bank account, and register a business. Read more about how to obtain an identification code for a foreigner and what you need to do in our previous article.

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

Ihor Usyk is the Head of Legal Department at Visit Ukraine

If you want to start your own business in Ukraine, you can get advice from my colleagues.
Professionals in the field of business law will help with all the nuances and problems.

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