e-Residency is about scaling up Ukraine's digital economy

This was emphasized by the head of the secretariat of the Council of Entrepreneurs under the Cabinet of Ministers, Andrii Zablovsky, commenting on the launch of beta testing of the program to Ukrainian Radio, Ukrinform reports.

"The objective of this project is to show that Ukraine is able to demonstrate itself as a country that shows high rates of economic development even during the war by attracting new investors and developing the so-called digital brand of the state... This is the scaling of our digital economy, which will help minimize the risks associated with the lack of personnel," Zablovsky said.

He explained that people who live in other countries and want to do business in Ukraine can open a business remotely. To do so, they will need to undergo a so-called one-time offline verification at the Ukrainian consular office at their country. Then all the procedures related to opening a bank account, registration, doing business, and paying taxes will be carried out exclusively online.

"Physical verification is a normal procedure, especially in times of war, in order to eliminate risks associated with people who should not do business in Ukraine in terms of sanctions policy, for example. I think this safeguard will not deter those who wish to do so," said the head of the secretariat.

According to him, the focus of the presented version is on small businesses in Europe and Asia, primarily the IT sector and creative economy specialists.

"Similar projects are already operating in Estonia and Georgia, where such opportunities were launched. Many Ukrainian businesspeople have also taken advantage of such offers from the Estonian and Georgian governments. Therefore, the idea arose to scale up the success and introduce this experience in Ukraine. We planned to do this before the war but had to postpone it. Now we are conducting so-called beta testing in a more closed mode, after which the project will be launched in countries such as India, Pakistan, Slovenia, and Thailand. The list will continue to grow," he said.

Zablovsky added that in the context of the technological revolution and digitalization of processes, this tool will make it possible to reduce dependence on the physical number of employees serving the Ukrainian economy and to involve our representatives around the world - both forced refugees and representatives of the Ukrainian diaspora - in order to create digital added value in the process of economic development.

"I think our project will be no less successful than those in Georgia, Estonia, and other countries," he said.

According to him, e-residency can be compared to a simplified individual entrepreneur: "You will do everything remotely, except for a one-time offline verification."

At the same time, Zablovsky added, there are control measures in place.

"If we are talking about paying taxes, financial transactions are unavoidable, because we have some international obligations, such as preventing money laundering, etc. There will be control, but it will not be burdensome for those who want to do business online, everything will be done in a simplified and accessible way. If you suddenly start abusing it, there will be sanctions like in Estonia - deprivation, closure, etc. There are safeguards, and this is a normal practice, as it works all over the world," Zablovsky emphasized.

As reported, Ukraine has launched a closed beta test of the e-residency service for foreign entrepreneurs who intend to pay taxes in Ukraine.