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Ukraine Introduces the E-Residency Program

By

Serhii Aleksandrov

Posted

November 29, 2022

at

09:02 AM

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It is no secret that Ukraine is fighting a war against Russia and that this has a devastating impact on the Ukrainian economy. The number of foreign investments to Ukraine has decreased significantly, as not many foreigners are ready to come and open a business under Russian bombs. Before the war, Ukraine offered so much in terms of business opportunities. Businesses were blooming and some industry-sectors were becoming leaders on the global market.

The good news is that since October 2022, foreigners have obtained access to Ukrainian advantages without a need to be present in the country, as President Zelenskiy approved the so-called “E-residence law”.

What is the e-residence law in Ukraine?

This new law allows foreigners to get registered in Ukraine as private entrepreneurs, open bank accounts and deal with Government institutions 100% online. So, you don’t need to come here to open a business, but you still can run it by paying a 5% profit tax!

And these are not all the advantages of the Ukrainian e-residence status. Let’s find more about what benefits you will get from being a Ukrainian e-resident.

Who is eligible for e-residence in Ukraine?

E-residence is a special legal status in Ukraine allowing foreign individuals to open and run their private business without any presence on the Ukrainian territory.

An e-resident is a foreigner 18 or older, who is not a Ukrainian tax resident and registered with the special governmental online system called “E-resident”.

What are the benefits of the e-residence program in Ukraine?

Ukrainian e-residence offers the following main benefits:

  1. ability to export any services from Ukraine;
  2. 5% profit tax provided that your annual profit doesn’t exceed UAH 7,805,500.00 (around USD 212,000.00 as of the date of this article);
  3. 15% profit tax if your annual profit for export of services from Ukraine exceeds UAH 7,805,500.00;
  4. business registration and operation online;
  5. opening and managing bank accounts online;
  6. obtaining qualified and certified digital signature (aka e-signature) online;
  7. no need of accounting as your Ukrainian bank will be your tax agent taking care of your bookkeeping;
  8. all communication with the Tax Office and other state institutions is done online.

Screenshot 2022-11-29 at 10,05,29.webp Learn more about the new e-residency program in Ukraine

Who is NOT eligible for e-residence in Ukraine?

The following categories of individuals CANNOT be e-residents:

· who is already a tax Ukrainian resident; · Ukrainian citizens; · holders of Ukrainian permanent residence; · stateless persons; · who receives income from Ukraine for goods, works and services (except of passive income like dividends, interest, royalty); · citizens or residents of Russia, off-shore states listed by FATF and of other countries that can be added to that list.

How do I apply for e-residence in Ukraine?

To become an e-resident you need to take the 4 simple steps:

a) Submit your online application on the “E-resident” platform b) Visit a Ukrainian consulate so the consular could verify your identity. After a background check you will receive in the consulate: (1) Ukrainian tax ID; and (2) your qualified and certified digital signature (aka e-signature) c) Register online as a private entrepreneur; and d) Open online a bank account in a Ukrainian bank.

Note: the E-residence Law takes force on April 01, 2023. By that date the E-residence portal will be launched and will start accepting online applications.

Serhii Aleksandrov is Ukrainian legal practitioner since 2006. He has worked at 4-top Ukrainian law firms and is the Founder of Legal Ideas law firm, with a prime focus on immigration services. Traveler. Business expat. Vision: Immigration must be safe, fast and reasonably priced.

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