Podcast 🎧 & blog: Launch of uResidency welcomes the world to digital Ukraine

By Federico Plantera

It is a major step towards global digital integration, the one coming from Ukraine. The country recently launched its uResidency programme in September 2024. With that, the country aims to open up to international entrepreneurs who seek to establish and operate businesses in a vibrant digital economy. Without the need for physical presence – sound familiar?

Don’t call it an Estonian spin-off, though. Ukraine’s uResidency has its own winning features on considerably decreasing bureaucracy, taxation, and benefitting from all the country’s recent advancements in online services.

Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine, and Andrii Piskun, Head of e-Services at e-Governance Academy in Ukraine, share insights on an initiative that welcomes the world into Ukraine’s digital sphere.

*Disclaimer: As this discussion features a lot of numerics, let it be mentioned that the numbers are from date of recording and the numbers as of 11.12.2024 are as follows: There are currently 300 uResidency applications and Diia portal has 21+ million users. 

How uResidency? Building on Proven Models

Setting the records straight, Bornyakov begins. “Ukraine has been evolving digitally at a rapid pace over the past few years, and uResidency is another milestone that opens the door to our economy for global entrepreneurs. It’s designed to be easy, frictionless, and fully online – showcasing the power of our digital infrastructure.”

Inspired by Estonia’s successful e-Residency programme, uResidency is Ukraine’s way of offering its highly developed digital services to the world. According to Bornyakov, the initiative aims to go beyond what similar programs have done by speaking to private entrepreneurs, freelancers, and digital nomads.

“Estonia showed the world how a digital identity could enable cross-border business activity, and Ukraine is taking that concept and advancing it. All in order to cater to the needs of a rapidly expanding digital workforce,” Bornyakov explains. The vision behind uResidency is to provide a platform where entrepreneurs, creatives, and tech professionals from around the world can easily establish and operate their businesses from Ukraine. “Everything is automated, right down to opening a bank account.”

The key to making this vision a reality is removing traditional barriers such as bureaucracy, complex tax systems, and the need for physical presence through steps of this process. “We’re envisioning a world where borders are not an obstacle to business operations, and that’s the principle behind uResidency. It’s about giving people the freedom to work from anywhere, and still access the benefits of Ukraine’s efficient and cost-effective digital infrastructure,” he says.

Streamlined Operations, Good Accounting, Minimal Bureaucracy

In fact, uResidents won’t need to manually file tax reports or deal with paperwork. “The bank acts as a tax agent, meaning uResidents don’t have to worry about tax management. You pay a flat 5% tax on income, and the system handles everything else.”

Another key feature is the fully remote nature of the programme. Foreign entrepreneurs can complete most tasks online, including verification, banking, and document signing, using Ukraine’s digital infrastructure. “The only time you need to ‘physically engage’, so to say, is for a brief 15-minute verification with a Ukrainian embassy or consulate. Everything else is done through an online app,” Bornyakov notes.

uResidents can also open and manage bank accounts online. “We want to demonstrate that Ukraine is a great place to do business, even while the country is still rebuilding. We’re resilient, and the services we offer are world-class,” he added. “The idea is simple: focus on your business, and let us handle the administration. That’s the future we want to build with uResidency,” the Deputy Minister adds.

A Vibrant Digital Ecosystem Calls for More to Join In

One of the most significant factors that make Ukraine’s uResidency possible is the country’s rapid digital transformation in recent years. This transformation has pushed Ukraine according to the A robust digital infrastructure, the wide availability of online tools and applications.

“Our government has invested heavily in digital infrastructure, and we now offer some of the most advanced digital services in the world,” he says. But the country’s achievements have not been limited to government services – Ukraine’s IT sector is growing too, with pace. “This programme showcases our wider capacity for innovation and security. That allows international entrepreneurs to feel confident, while managing their businesses in Ukraine’s digital space,” Bornyakov explains.

The Diia app – already praised for its user-centric design – allows citizens to access government services digitally and seamlessly. Now, it does so for foreign entrepreneurs too. All the while Trembita, the system’s backbone based on Estonia’s X-Road platform, powers secure and efficient data exchange between government agencies for effective service delivery.

Andrii Piskun, from e-Governance Academy, emphasises the importance of collaboration between the Ukrainian government and international partners in bringing the uResidency programme to life. “I’d say political will and support were the major enablers,” Piskun explains. However, eGA’s team was instrumental in developing Ukraine’s u-Residency by sharing Estonian best practices.

“We had significant contributions from all founders and donors, as well as technical support partners. That includes the European Union through projects like EU4DigitalUA, and DT4UA,” Piskun says. Everything was designed to ensure uResidency is efficient, accessible, and secure.

uResidency, In the Long Run

The initial goal for 2024 is to attract 1,000 uResidents, but the team expects rapid growth in the years to come. “We already have over 230* applications in just a few days after launch, and that’s without any major marketing. It’s all happening through word of mouth,” Bornyakov says, gladly.

But while some might wonder if uResidency is meant to play a role in Ukraine’s post-war reconstruction, the Deputy Minister clarifies that the focus remains on keeping the experience seamless and business-oriented.

“We don’t want uResidents to feel burdened by Ukraine’s internal challenges. The beauty of uResidency is that you can operate as if Ukraine wasn’t in the middle of a war. Everything runs smoothly, no matter what.”

The e-Governance Academy (eGA), through the EU-supported EU4DigitalUA and DT4UA projects, contributed to developing and launching the uResidency—Ukrainian e-residency programme. The programme will help Ukraine attract foreign investments and bring Ukraine closer to the EU’s digital market.

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