uResidency – Opportunity for Foreigners to Conduct Business in Ukraine Without Excessive Bureaucracy

Introduction

The concept of electronic residency in Ukraine was initiated back in 2020, but gained its real implementation in September 2024, when the Ministry of Digital Transformation, with the support of the European Union, officially launched the uResidency program.

This is a modern instrument that opens new opportunities for foreigners to conduct business in Ukrainian jurisdiction without unnecessary obstacles and red tape.

The program allows entrepreneurs from other countries to remotely register as sole proprietors, pay taxes online and enjoy all the benefits of the official jurisdiction of a European state. For foreigners, this is a chance to gain simple and transparent access to the Ukrainian market, conduct business in a clear tax environment and strengthen their clients' trust through legal status in Ukraine.

Thus, uResidency is not just a simplification of procedures, but a real step towards integration of foreign entrepreneurs into Ukraine's economy, which simultaneously promotes the development of international partnerships and attracts investment.

Who is an Electronic Resident?

By the Law of Ukraine dated October 6, 2022 No. 2654-IX "On Amendments to the Tax Code of Ukraine and Some Other Laws of Ukraine Regarding Peculiarities of Taxation of Electronic Residents' Entrepreneurial Activities", a new concept of electronic resident (e-resident) was introduced.

Electronic resident (e-resident) - a foreign national who has reached the age of 18, is not a tax resident of Ukraine, has received corresponding qualified electronic trust services and whose information is entered into the "E-resident" information system

what is the "e-resident information system"?

The "E-resident" information system is a component of the Unified State Web Portal of Electronic Services, within which the collection, accumulation, processing, protection, accounting and provision of information about electronic residents is carried out.

What are the Benefits of Obtaining "E-resident" Status for Foreigners?

Foreign nationals who obtain e-resident status will be able to register as entrepreneurs and conduct business in Ukraine's jurisdiction remotely, while staying anywhere in the world. All procedures are conducted entirely online — from submitting an application to opening a bank account and paying taxes.

The e-residency program creates favorable conditions for foreign entrepreneurs to conduct business:

Official jurisdiction in a European country, which increases trust from clients and partners of the e-resident.
Favorable taxation — only 5% of profit not exceeding 180 thousand euros.
Convenient online registration as a sole proprietor from anywhere in the world through a mobile application or web portal.
Financial control on your smartphone through mobile banking.
No need for bookkeeping and reporting — all calculations and tax obligations are performed by the bank as the e-resident's tax agent.
Minimal costs — the only payments relate to taxes and symbolic fees for opening and servicing accounts.

Who Can Obtain E-resident Status?

A foreign national has the right to acquire electronic resident (e-resident) status after submitting through the "E-resident" information system an application for acquiring electronic resident (e-resident) status, their identification and provision of qualified electronic trust services.

Cannot be electronic residents (e-residents):

Ukrainian citizens;
foreigners who have the right to permanent residence in Ukraine or are tax residents of Ukraine;
stateless persons;
persons who receive income sourced from Ukraine for goods, works, services (except passive income);
persons who are citizens (subjects), residents or persons whose place of permanent residence (stay, registration) are states (jurisdictions) not included in the list of states whose citizens or residents may acquire electronic resident (e-resident) status.

Currently, obtaining e-resident status is available only to citizens of: Slovenia, India, Pakistan and Thailand.

Further expansion of the program to other countries is also planned.

At the same time, participation in the program is prohibited for countries recognized as aggressor states and/or occupying states with respect to Ukraine.

Any foreign national whose citizenship is included in the list of participating countries and who does not fall under the restrictions established for persons who cannot acquire e-resident status can become an e-resident.

How to Obtain E-resident Status?

To obtain e-resident status, it is not necessary to visit Ukraine. The process of obtaining e-resident status is as simple as possible. For this, you will need to take only a few steps.

step 1 - application

First, you need to fill out an application. This can be done through a mobile application or on the Ukrainian e-residency website - https://e-resident.diia.gov.ua/.

The application is filled out by the applicant in English and must contain the following information about the applicant:

Last name, first name and patronymic (if available), date of birth, gender;
Country and place of birth, citizenship, place of residence with full address and postal code;
Phone number and email address;
Passport document data (number, issuing authority and country, date of issue and expiration date);
Type of economic activity;
Tax number in the country of citizenship.

A scanned copy of the passport in electronic form must be attached to the application.

step 2 - verification

After submitting the application, familiarizing the applicant with the notice about personal data processing, indicating information about the absence of criminal record, an account is created for the applicant in the "E-resident" information system. Verification usually occurs quickly, but in some cases may take up to 30 days.

step 3 - obtaining e-resident status

In the absence of grounds that prevent the acquisition of e-resident status, the Applicant within 90 calendar days after receiving a link to the resource of the Ministry of Foreign Affairs of Ukraine must schedule an appointment at a Ukrainian foreign diplomatic mission and visit it for the purpose of undergoing identification by an official of the Ukrainian foreign diplomatic mission and subsequent receipt of qualified electronic trust services and acquisition of e-resident status.

step 4 - entrepreneur registration

An e-resident can register as an e-resident-entrepreneur and open a bank account using a qualified electronic signature.

step 5 - opening a bank account

E-resident-entrepreneurs can open a bank account and conduct entrepreneurial activities in Ukraine's jurisdiction.

step 6 – conducting your business

Congratulations! Now you can start entrepreneurial activities using all the advantages of the innovative uResidency program. It opens access to simple and transparent business rules, modern digital tools and attractive tax conditions in Ukraine's jurisdiction.

step 7 – obtain professional legal support for safe and effective business conduct

Disputes Law Firm is ready to provide you with professional support on all legal matters related to conducting business — from registration and preparation of necessary documents to business activity support and protection of your interests.