E-Residency in Ukraine for Foreigners

E-Residency in Ukraine for Foreigners

On 28.10.2022, Law of Ukraine No. 2654-IX on E-Residency was formally published.

The Law shall enter into force on 01.04.2023.

The Law provides that an e-resident is a foreigner who has reached the age of 18, is not a tax resident of Ukraine, who has received appropriate qualified electronic trust services and whose information is entered into the “E-Resident” information system.

The following persons shall not obtain e-resident status:

  • citizen of Ukraine;
  • foreigners who have permanent residency in Ukraine or who are tax residents of Ukraine;
  • stateless persons;
  • persons who already receives income in Ukraine (except for passive income);
  • persons who are citizens, residents or persons whose permanent residency is in the states not included in the List of States whose citizens or residents shall obtain e-resident status.

Therefore, the following states shall not be included in the List of States whose citizens or residents shall obtain e-resident status:

  • aggressor states to Ukraine;
  • included in the list of high-risk FATF countries (“black list” of FATF);
  • included in the “gray list” of FATF;
  • determined by the European Commission as a country with weak regimes for preventing and countering of AML/CFT.

In order to start a business in Ukraine, a foreigner shall:

  • submit an application on the web portal or in the mobile application to check and obtain the e-resident status;
  • undergo identification at a foreign diplomatic institution in the host country;
  • get taxpayer’s card code and electronic signature in Diya app;
  • register through the mobile application as an individual entrepreneur of the 3rd group;
  • open online bank accounts in Ukrainian banks;
  • carry out entrepreneurial activities.

Thus, the Law provides for the following opportunities for e-residents:

  • carry out entrepreneurial activities as an individual entrepreneur;
  • pay the single tax at the rate of 5% of income;
  • open and manage bank accounts remotely;
  • use modern tools for online business management using a laptop or smartphone (via a web portal and a mobile application);
  • sign documents with an electronic signature.

The Law On the Peculiarities of Withdrawing a Systemically Important Bank from the Market under Martial Law has entered into force

On 28.10.2022, Law of Ukraine No. 2643-IX entered into force providing for a simplified procedure for withdrawing a systemically important bank from the market in the case if the bank loses liquidity during martial law.

According to the statement of the Draft Law’s author Mr. Yaroslav Zhelezniak MP, the Law grants the right to the Ministry of Finance, at the suggestion of the NBU, to participate in the withdrawal procedure of a systemically important bank from the market due to the reasons that arose during the russian aggression against Ukraine.

Thus, the Law provides for the following procedure for withdrawing a systemically important bank from the market:

  • On the day of a decision to classify a systemically important bank as insolvent the NBU notify of this decision the bank, bank’s participants and the Deposit Guarantee Fund, simultaneously sending a proposal to the Cabinet of Ministers of Ukraine on the state’s participation in the procedure of withdrawing a systemically important bank from the market.
  • The Cabinet of Ministers of Ukraine considers the proposal and, no later than the next day after receiving it, makes a decision on the state’s participation in the procedure or on the refusal of the participation, notifying the NBU and the Deposit Guarantee Fund of the decision on the day of its adoption.

In case of receiving a decision on the state’s participation in the procedure of withdrawing a systemically important bank from the market the Deposit Guarantee Fund:

  • does not change the size of the authorized capital of the bank, does not launch the denomination of shares;
  • does not form the bank’s reserves to cover losses for active banking operations and does not determine the credit risk for all active banking operations;
  • does not engage international accountancy firms to provide an audit report.

The Law on Voluntary Military Registration of Women entered into force

On 26.10.2022, Law of Ukraine No. 2664-IX entered into force providing for amendments to the Law of Ukraine “On Military Obligation and Military Service” regarding the military registration of women.

Thus, the Law provides that women who are suitable for military service due to their health and age and who have acquired a medical or pharmaceutical specialty are subject to mandatory military registration.

Women who have a specialty or a profession related to the military specialty specifying in the List, approved by the Ministry of Justice, and who are suitable for military service due to their health and age, shall be taken on military registration only at their request.