Ukraine has launched uResidency, a program enabling foreigners to start a business in the country remotely, Digital Transformation Minister Mykhailo Fedorov announced on Sept. 27 at the Lviv IT Arena, according to a Kyiv Independent journalist reporting from the event.
The program offers foreign entrepreneurs favorable conditions for conducting business, including a 5% tax on gross revenues up to 180,000 euros ($201,000), the ability to register remotely as individual entrepreneurs, and the ability to conduct business through a mobile application and website.
Kyiv has long sought to open business opportunities as it seeks to regain economic investments and rebuild entrepreneurial opportunities lost throughout the duration of the war.
"Thanks to technology, we can create products that can attract funds to Ukraine and grow the brand of an innovative country. One of these products is the uResidency," Fedorov said.
"This is a revolutionary project that will not only offer foreigners a great service for doing business in Ukraine but also support the Ukrainian economy. There are only a few similar projects in the world."
Despite what the name implies, no additional pathways for permanent residency in Ukraine are provided.
Foreigners do not need to travel to Ukraine to obtain "e-residency status." To do this, they just need to undergo a one-time offline verification at the Ukrainian consular office in their country of residence. Subsequently, this procedure will also take place online.
The uResidency was implemented with the support of the European Union through projects implemented by the eGovernance Academy of Estonia.
The uResidency members are also not required to handle financial accounting on their own, as the bank will do it for them as a tax agent.
The program is currently available to citizens of India, Pakistan, Thailand, and Slovenia. The first phase is expected to involve about 1,000 e-residents. According to Fedorov, the list of countries will be expanded in the future.
The Digital Transformation Ministry continues to work towards the concept of "the state in a smartphone," which was established in 2020 with the launch of the Diia app - a state mobile application for government services.
Ukrainians can access digitized versions of various official documents, including their passport, driver's license, vehicle registration, or tax ID. It is also possible to do things like register a business or the birth of one's child on the app.
Last year, President Zelensky announced that Ukraine was helping other countries in Europe, Latin America, and Africa to develop the equivalent of Diia.
Kateryna Denisova
(Updated: )
