The Ministry of Justice has recently clarified that a foreigner does not need to obtain a residence permit in Ukraine to register as a private entrepreneur under Ukrainian law. Before a foreigner had to show a residence permit as proof of her registered address in Ukraine to apply for a private entrepreneur status. After clarification, an expat can provide other documents to evidence her address, e.g. a residential property lease contract, information from the state property registry, etc.

From now on the process of registering as a private entrepreneur includes: (1) receiving a tax payer ID number; and (2) obtaining information from the state property registry on the proprietary right to a real estate in Ukraine or providing a lease contract.

The said improvements should positively affect the development of the human capital flow and will make Ukraine a more attractive destination for foreign entrepreneurs wishing to conduct business in Ukraine. Particularly, given attractive taxation for individual tax residents.