Ukraine launches uResidency allowing foreigners to register businesses with 5% tax
Фото: фейсбук
The uResidency feature has been launched in Ukraine's digital governance Diia app, allowing citizens of other countries to register a sole proprietorship (FOP) in Ukraine and beyond.
As reported by Rubryka, citing Minister of Digital Transformation Mykhailo Fedorov, "We have created the best conditions for Ukrainian entrepreneurs—FOP registration is the fastest in the world, taxes are paid in a few clicks, and additional business services are available online. Now we are ready to extend this experience to foreigners as well. Becoming an e-resident in Ukraine is easier and more profitable than starting a business elsewhere, with a tax rate of just 5%," Fedorov wrote.
How to use the service?
To become an e-resident, applicants need to fill out a form either through the Diia app or on the uResidency portal, a process that takes 5 to 10 minutes. After verification, the applicant receives a Qualified Electronic Signature (QES) at the consulate, without needing to visit Ukraine. They can then open a sole proprietorship (FOP) online, and all subsequent interactions are handled automatically.
According to Minister Fedorov, all reporting will be fully automated. Banks will calculate taxes, file declarations, and manage all paperwork without human involvement. No accountants or lawyers are needed—the system handles everything, allowing e-residents to focus solely on their business.
"Electronic residency is a revolutionary project for the economy, providing a constant income stream to the budget. For instance, Estonia's e-residency program, active for 10 years, brings in millions in taxes annually," Fedorov said.
He also noted that the first e-residents have already opened bank accounts and are satisfied with the results.
Who can use the feature?
Currently, the uResidency program is available to citizens of India, Pakistan, Thailand, and Slovenia. In its initial phase, the program aims to involve around 1,000 e-residents, with more countries to be added later.
E-residents will pay a 5% tax on income within the FOP 3rd group limit and 15% on income exceeding the limit, but only for external contracts related to the export of services.
At first, participants can register as individual entrepreneurs, with plans to later enable registration of companies in the form of LLCs. Minister Fedorov emphasized that "e-residency" will become an independent business ecosystem.
The project will be presented at the IT Arena in Lviv from September 27 to 29.
Rubryka previously reported that Fedorov announced eight new services in the Diim app. More details on e-residency registration, taxes, and permitted business activities are available as the program continues to evolve. Read more in Rubryka's piece Electronic residency for foreigners in Ukraine: everything you need to know.
