Government green lights e-residency in Ukraine

27.06.2020 | Legal

On 25.06.2020, the Government adopted a resolution that gives the green light to the e-residency project. An experiment on the implementation of this project will start on July 1. The relevant procedure has also been approved.

E-residency is a project of the Ministry of Digital Transformation. It is designed to make Ukraine a more attractive country for foreigners. This is a special status of a foreign citizen in Ukraine, which opens access to information and consulting services, simplifies the procedures for obtaining administrative services and concluding civil law agreements, as well as gives foreigners the opportunity to remotely launch and conduct business in Ukraine.

“E-residency is an unrivalled project of the Ministry of Digital Transformation that can make Ukraine a powerful Eastern European IT hub. Due to e-residency our country will shortly become attractive for doing business by foreigners – primarily IT specialists, ”  noted Minister of Digital Transformation Mykhailo Fedorov.

E-residency in Ukraine. How does it works?

The project is being created for representatives of the creative industry – IT, marketing, advertising, and gaming.

E-residency project enables foreigners to receive online:

  • an Ukrainian qualified electronic signature;
  • a registration number of the taxpayer record card;
  • the opportunity to open an online account in a Ukrainian bank;
  • simplified access to administrative services in Ukraine.

According to the resolution, the Ministry of Digital Transformation within two months must submit to the Cabinet of Ministers of Ukraine proposals for the adoption of acts necessary for the implementation of the adoption of regulations arising from this resolution. Within three months – to determine the list of countries for the implementation of the experiment and to ensure the creation and operation of the system “E-resident”, which will be part of the Diia (Action) platform.

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Moreover, in order to kick off implementation of the project the Ministry of Internal Affairs, the Ministry of Foreign Affairs, the Ministry of Justice, the Ministry of Finance, the State Tax Service, the State Financial Monitoring Service must ensure the development and adoption of regulations, creation of organizational, technical and personnel conditions necessary to perform functions imposed by the approved procedure.

Ministry of Digital Transformation sees foreign IT specialists working for Ukrainian companies as the first e-residents, as well as specialists from the Asia-Pacific region and near abroad countries, for whom the status of e-resident of Ukraine will help to cooperate effectively in the European market.

Does an e-resident will have any advantages to a non-e-resident?

Acquiring e-resident status in Ukraine does not provide any advantages in staying on the territory of Ukraine, crossing the state border of Ukraine, applying for a temporary or permanent residence permit, becoming a citizen of Ukraine, acquiring refugee status or a person in need of additional protection, compared to other foreigners and stateless persons.

Diplomatic institutions of Ukraine will also perform the functions of identification of interested persons, and other functions related to the acquisition of electronic residents.

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The Ministry of Digital Transformation will provide clarifications on the application of the approved procedure. Within two months, it will submit proposals for the adoption of acts necessary for the implementation of the pilot project and will ensure the adoption of regulations necessary for the implementation of the procedure.

When it will be possible to become an e-resident of Ukraine?

Within three months, the states whose citizens can participate in the pilot project (in other words, receive e-resident status) will be identified.

Obtaining e-resident status will be paid. The procedure and amounts of payment for the service will be determined later by the Ministry.

How long does it take to become an e-resident of Ukraine?

It is worth noting that the procedure for obtaining e-resident status can be lengthy. Thus, the system administrator will submit an application within one day, then send a request to the Ministry of Internal Affairs and the Security Service of Ukraine regarding the presence or absence of prohibitions or restrictions on granting the applicant e-resident status. Such verification may last for 20 days after receipt of the request. The Ministry of Internal Affairs and the Security Service of Ukraine, within their competence, will check with Interpol and Europol banks the presence or absence of information that the applicant has not been prosecuted in Ukraine for committing a crime; involvement in activities that threaten the national security of Ukraine; is not on the international wanted list, about which a corresponding report is formed and submitted to the administrator.

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The administrator then verifies the applicant’s information within 10 days in a list of persons involved in terrorist activities or subject to international sanctions.

Can a person be refused to become an e-resident of Ukraine?

The administrator is not obliged to notify the applicant of the grounds for refusal to grant e-resident status.

If there are no grounds for refusal, the administrator sends the applicant in electronic form details to pay for the service of providing e-resident status. After receiving confirmation of payment for the service, the administrator sends through the portal of the State Tax Service of Ukraine a request for registration of the registration number of the taxpayer’s account card (so called tax ID).

The administrator will then notify the consular officer of the reservation of the tax number. After that, within one day, the consular officer will determine the date and time for the identification of the applicant and will send the applicant an invitation in electronic form through the portal. After identification of the applicant, he acquires the status of e-resident.

The e-resident can open bank accounts by submitting an application in electronic form using the portal, choosing a bank from among the banks. In this case, the e-resident has the right to open only one bank account.

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