Diia City and Critical Enterprise Status for Newly Established Companies: Why It Is Worth Applying for Residency as Early as Possible

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For newly established IT companies planning to obtain Diia.City resident status and subsequently qualify as a critical enterprise for the purpose of reserving employees, proper timing has become particularly important in 2026.

Following the amendments introduced by Cabinet of Ministers Resolutions No. 1475 dated November 13, 2025, and No. 692 dated May 30, 2026, the strategy of “setting up a company first and dealing with Diia.City and critical enterprise status later” may result in losing several months.

Instead, for a new business, a more effective approach may be to obtain Diia.City resident status as soon as possible and start meeting the requirement of an average monthly remuneration of at least the equivalent of EUR 1,200 from the first month after obtaining such status.

As a result, by the beginning of the following year, the company may already have established the required compliance history and proceed with obtaining critical enterprise status.

Following the changes introduced by Cabinet of Ministers Resolutions No. 1475 dated November 13, 2025, and No. 692 dated May 30, 2026, the strategy of “establishing a company first and figuring out Diia City residency and critical enterprise status later” may result in losing several months.

Instead, for a new business, a more efficient approach may be to obtain Diia City resident status as early as possible and start meeting the requirement for an average monthly remuneration of at least the equivalent of EUR 1,200 from the first month after obtaining resident status.

As a result, by the beginning of the following year, the company may already have established the necessary compliance record and proceed with applying for critical enterprise status.

What Changed in 2026

A key change was introduced by Resolution No. 692 of the Cabinet of Ministers of Ukraine dated May 30, 2026, which amended Cabinet Resolution No. 76 of January 27, 2023.

As of June 2, 2026, being listed in the relevant Diia City resident register is no longer sufficient for a Diia City resident to meet the special criticality criterion.

Subparagraph 7 of paragraph 2 of the Criteria approved by Resolution No. 76 provides that a Diia City resident company must meet the requirements of paragraph 2 of part one of Article 5 of the Law of Ukraine “On Stimulating the Development of the Digital Economy in Ukraine” No. 1667-IX.

This provision of Law No. 1667-IX establishes a requirement under which the average monthly remuneration paid to employees and GIG specialists, starting from the calendar month following the month in which Diia City resident status is acquired, must amount to at least the equivalent of EUR 1,200 each calendar month, calculated at the relevant NBU exchange rate.

This is particularly important for newly established companies.

In practice, the legislator has linked the ability of Diia City residents to use the special criticality criterion to having a six-month track record of meeting the relevant requirements.

Why You Should Apply for Diia City as Early as Possible

For a newly established company, the timing of obtaining Diia City resident status directly affects when the required compliance period begins.

For example, if a company obtains Diia City resident status in September 2026, then, pursuant to Article 5 of Law No. 1667-IX, the EUR 1,200 remuneration requirement starts applying from October 2026.

Once the relevant six-month compliance history has been established and the required reporting has been submitted, the company can confirm that it meets the special Diia City resident criterion.

Therefore, for a startup, there is little practical benefit in postponing obtaining Diia City resident status for several months if the company is already prepared to meet the Diia City requirements.

Every month of delay in obtaining resident status may potentially postpone the date from which the six-month compliance history for critical enterprise status begins to accrue.

EUR 1,200 Is Not an Average Over Six Months

It is important to address a common misunderstanding regarding this requirement.

The rule does not mean that a company can, for example, pay €600 in one month and €1,800 in another and then have an average of €1,200 over the six-month period.

Law No. 1667-IX sets the requirement for each calendar month.

Accordingly, when planning remuneration, a company must ensure that the required level is met in each of the six months, rather than simply reaching the required arithmetic average for the entire period.

Compliance is confirmed based on the tax reports for the six preceding calendar months submitted by the company in accordance with the applicable procedure.

What to Do About the EUR 20,000 Income or Investment Requirement

This is where it is important to take into account the changes introduced by Cabinet of Ministers Resolution No. 1475 dated November 13, 2025.

Resolution No. 1475 supplemented paragraph 5 of the Criteria set out in Resolution No. 76 with special rules for companies that obtained Diia City resident status under part three of Article 5 of Law No. 1667-IX — that is, residents that used the special regime for startups.

For such companies, two alternative options are available for demonstrating compliance.

Option 1 — EUR 20,000

The company may provide documents confirming that, during the three full months following the month in which Diia City resident status was obtained, it received income from the sale of products, goods, works, or services, as well as qualifying royalties, grants, and/or investments, in an amount of at least the equivalent of EUR 20,000.

This requirement is often perceived as mandatory for any startup seeking critical enterprise status. However, the legislation provides an alternative route.

Option 2 — Annual Compliance Report

Instead of documents confirming EUR 20,000 in income and/or investments, the company may provide supporting documents confirming compliance with the requirements set out in part three of Article 13 of Law No. 1667-IX, i.e. documents related to the Diia City resident’s annual compliance report.

Therefore, the EUR 20,000 requirement is not the only possible route for a Diia City resident startup.

This gives newly established companies another strategy for meeting the requirements.

Why It May Be More Beneficial for a New Business Not to Pursue EUR 20,000

If a company does not have a major contract, investment round, or another significant source of income at the outset, meeting the EUR 20,000 income requirement can be an extremely challenging task.

Instead, the company can structure its operations to simultaneously:

Obtain Diia City resident status.
Starting from the following month, ensure that employees and GIG specialists receive the required level of average monthly remuneration.
Build the required reporting history over six months.
Properly comply with all other requirements of the Diia City residency legislation.
Prepare the annual compliance report.
Obtain an independent assurance report from an audit entity.
Use this package of documents as an alternative to confirming EUR 20,000 in the procedure for obtaining critical enterprise status.

In other words, instead of focusing on meeting the relatively challenging EUR 20,000 threshold, the company can focus on preparing and submitting its annual compliance report — which, in any case, it will be required to submit.

Important Clarification: What Is Meant by an “Audit”

In practice, the phrase “undergoing a Diia City audit” is often used. However, from a legal perspective, it is more accurate to refer to an independent assurance report based on the verification of the statements contained in the Diia City resident’s compliance report.

Part three of Article 13 of Law No. 1667-IX provides that the annual compliance report must be accompanied by an independent assurance report issued by an audit entity based on the verification of the statements made by the Diia City resident.

At the same time, the Law expressly provides that the independent assurance report must be issued by an audit entity authorized to conduct statutory audits of financial statements.

Therefore, for a legally accurate description of the procedure, it is preferable to use the wording:

“annual compliance report and independent assurance report issued by an audit entity”

rather than stating that the company is required to undergo a full financial statement audit.

The official Diia portal also separately notes that the independent assurance report on the compliance report is not a full financial statement audit.

The FLH-Services team has completed more than 300 audits with a 100% success rate, allowing us to guarantee the quality of our services. If you need assistance with accounting matters or are unsure whether your LLC meets the required criteria, we will be happy to help. Submit an application, and our manager will contact you.

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What Does an Optimal Strategy Look Like for a Newly Established Company? In practice, the process for a newly established company can be structured as follows.

Step 1. Obtain Diia City resident status as soon as possible.

After registering the legal entity and preparing to operate under the special regime, it is advisable not to delay submitting the application for residency.

Under Article 4 of Law No. 1667-IX, a legal entity acquires Diia City resident status from the date the relevant entry is made in the Diia City register.

Step 2. Start meeting the EUR 1,200 requirement from the following month.

Starting from the calendar month following the month in which resident status is obtained, the company must ensure that the average monthly remuneration of its employees and GIG specialists is at least the equivalent of EUR 1,200.

This requirement must be met every month.

Step 3. Avoid reporting gaps for six months.

The company must properly document employment relationships and/or GIG contracts, calculate and pay remuneration, pay the relevant taxes and unified social contribution (SSC), and submit tax reports on time.

This is important because tax reports for six calendar months are used to confirm compliance with the specific Diia City resident criterion.

Step 4. Meet the other critical enterprise requirements in parallel.

It is important to understand that meeting the criterion applicable to Diia City residents does not by itself result in automatic critical enterprise status.

The company must also meet the other mandatory criteria set out in paragraph 2 of the Criteria under Resolution No. 76.

These include having no outstanding tax or SSC liabilities, as well as meeting the general requirements regarding remuneration levels and other criteria established by law.

Therefore, critical enterprise status should be planned comprehensively rather than based solely on the EUR 1,200 requirement.

Step 5. Prepare the documents for alternative confirmation at the beginning of the following year.

If the company does not plan to use the EUR 20,000 confirmation mechanism for the first three full months, it should prepare in advance to submit the annual compliance report and obtain an independent assurance report.

This mechanism, introduced by Resolution No. 1475, provides an alternative confirmation route for Diia City resident startups.

In practice, the process for a newly established company can be structured as follows.

Why This Decision Should Be Made When Establishing the Company

For a newly established company, the biggest challenge following the 2026 changes is not Diia City resident status itself, but the time lag between obtaining residency and being able to document the required indicators for critical enterprise status.

If a company delays obtaining Diia City resident status, for example, by three months, it effectively postpones the start of the six-month period required to confirm compliance with the EUR 1,200 remuneration requirement.

Therefore, the decision to say,“Let’s obtain Diia City residency later, once we start operating actively,”may prove disadvantageous.

Instead, the strategy of:

“Obtain Diia City residency as early as possible → ensure the EUR 1,200 requirement from the following month → build a six-month compliance record → meet the other critical enterprise criteria in parallel → prepare the annual compliance report and independent assurance report”

allows the company to establish the necessary legal and documentary foundation in advance.

By providing comprehensive legal and accounting services to our clients, we ensure that all necessary criteria are met correctly and on time. If you are looking for a company that can handle all your needs “turnkey,” submit an application on our website, and we will provide a free initial consultation and prepare a commercial proposal for you.

Get a Consultation

Practical Example

Suppose a company obtains Diia City resident status in September 2026.

The approximate timeline would look as follows:

Period	What a company does
September 2026	Obtainig Diia.City status
October 2026	Begins meeting the EUR 1,200 requirement
November 2026	Continues to meet the EUR 1,200 requirement
December 2026	Continues to meet the EUR 1,200 requirement
January 2026	Continues to meet the EUR 1,200 requirement
February 2027	Continues to meet the EUR 1,200 requirement
March 2027	Submits the annual compliance report and completes the sixth month of meeting the average remuneration requirement
Year 2027	Use the accumulated reporting and supporting documents for the critical enterprise status application

At the same time, the company does not need to wait until it has accumulated EUR 20,000 if it plans to use the alternative mechanism provided for in paragraph 5 of the Criteria under Resolution No. 76, as amended by Resolution No. 1475.

For newly established IT companies planning to obtain Diia.City resident status and subsequently qualify as a critical enterprise for the purpose of reserving employees, proper timing has become particularly important in 2026.

Following the amendments introduced by Cabinet of Ministers Resolutions No. 1475 dated November 13, 2025, and No. 692 dated May 30, 2026, the strategy of “setting up a company first and dealing with Diia.City and critical enterprise status later” may result in losing several months.

Instead, for a new business, a more effective approach may be to obtain Diia.City resident status as soon as possible and start meeting the requirement of an average monthly remuneration of at least the equivalent of EUR 1,200 from the first month after obtaining such status.

As a result, by the beginning of the following year, the company may already have established the required compliance history and proceed with obtaining critical enterprise status.

Following the changes introduced by Cabinet of Ministers Resolutions No. 1475 dated November 13, 2025, and No. 692 dated May 30, 2026, the strategy of “establishing a company first and figuring out Diia City residency and critical enterprise status later” may result in losing several months.

Instead, for a new business, a more efficient approach may be to obtain Diia City resident status as early as possible and start meeting the requirement for an average monthly remuneration of at least the equivalent of EUR 1,200 from the first month after obtaining resident status.

As a result, by the beginning of the following year, the company may already have established the necessary compliance record and proceed with applying for critical enterprise status.

What Changed in 2026

A key change was introduced by Resolution No. 692 of the Cabinet of Ministers of Ukraine dated May 30, 2026, which amended Cabinet Resolution No. 76 of January 27, 2023.

As of June 2, 2026, being listed in the relevant Diia City resident register is no longer sufficient for a Diia City resident to meet the special criticality criterion.

Subparagraph 7 of paragraph 2 of the Criteria approved by Resolution No. 76 provides that a Diia City resident company must meet the requirements of paragraph 2 of part one of Article 5 of the Law of Ukraine “On Stimulating the Development of the Digital Economy in Ukraine” No. 1667-IX.

This is particularly important for newly established companies.

In practice, the legislator has linked the ability of Diia City residents to use the special criticality criterion to having a six-month track record of meeting the relevant requirements.

Why You Should Apply for Diia City as Early as Possible

For a newly established company, the timing of obtaining Diia City resident status directly affects when the required compliance period begins.

For example, if a company obtains Diia City resident status in September 2026, then, pursuant to Article 5 of Law No. 1667-IX, the EUR 1,200 remuneration requirement starts applying from October 2026.

Once the relevant six-month compliance history has been established and the required reporting has been submitted, the company can confirm that it meets the special Diia City resident criterion.

Therefore, for a startup, there is little practical benefit in postponing obtaining Diia City resident status for several months if the company is already prepared to meet the Diia City requirements.

Every month of delay in obtaining resident status may potentially postpone the date from which the six-month compliance history for critical enterprise status begins to accrue.

EUR 1,200 Is Not an Average Over Six Months

It is important to address a common misunderstanding regarding this requirement.

The rule does not mean that a company can, for example, pay €600 in one month and €1,800 in another and then have an average of €1,200 over the six-month period.

Law No. 1667-IX sets the requirement for each calendar month.

Accordingly, when planning remuneration, a company must ensure that the required level is met in each of the six months, rather than simply reaching the required arithmetic average for the entire period.

Compliance is confirmed based on the tax reports for the six preceding calendar months submitted by the company in accordance with the applicable procedure.

What to Do About the EUR 20,000 Income or Investment Requirement

This is where it is important to take into account the changes introduced by Cabinet of Ministers Resolution No. 1475 dated November 13, 2025.

Resolution No. 1475 supplemented paragraph 5 of the Criteria set out in Resolution No. 76 with special rules for companies that obtained Diia City resident status under part three of Article 5 of Law No. 1667-IX — that is, residents that used the special regime for startups.

For such companies, two alternative options are available for demonstrating compliance.

Option 1 — EUR 20,000

This requirement is often perceived as mandatory for any startup seeking critical enterprise status. However, the legislation provides an alternative route.

Option 2 — Annual Compliance Report

Instead of documents confirming EUR 20,000 in income and/or investments, the company may provide supporting documents confirming compliance with the requirements set out in part three of Article 13 of Law No. 1667-IX, i.e. documents related to the Diia City resident’s annual compliance report.

Therefore, the EUR 20,000 requirement is not the only possible route for a Diia City resident startup.

This gives newly established companies another strategy for meeting the requirements.

Why It May Be More Beneficial for a New Business Not to Pursue EUR 20,000

If a company does not have a major contract, investment round, or another significant source of income at the outset, meeting the EUR 20,000 income requirement can be an extremely challenging task.

Instead, the company can structure its operations to simultaneously:

Obtain Diia City resident status.

Starting from the following month, ensure that employees and GIG specialists receive the required level of average monthly remuneration.

Build the required reporting history over six months.

Properly comply with all other requirements of the Diia City residency legislation.

Prepare the annual compliance report.

Obtain an independent assurance report from an audit entity.

Use this package of documents as an alternative to confirming EUR 20,000 in the procedure for obtaining critical enterprise status.

In other words, instead of focusing on meeting the relatively challenging EUR 20,000 threshold, the company can focus on preparing and submitting its annual compliance report — which, in any case, it will be required to submit.

Important Clarification: What Is Meant by an “Audit”

In practice, the phrase “undergoing a Diia City audit” is often used. However, from a legal perspective, it is more accurate to refer to an independent assurance report based on the verification of the statements contained in the Diia City resident’s compliance report.

Part three of Article 13 of Law No. 1667-IX provides that the annual compliance report must be accompanied by an independent assurance report issued by an audit entity based on the verification of the statements made by the Diia City resident.

At the same time, the Law expressly provides that the independent assurance report must be issued by an audit entity authorized to conduct statutory audits of financial statements.

Therefore, for a legally accurate description of the procedure, it is preferable to use the wording:

“annual compliance report and independent assurance report issued by an audit entity”

rather than stating that the company is required to undergo a full financial statement audit.

The official Diia portal also separately notes that the independent assurance report on the compliance report is not a full financial statement audit.

What Does an Optimal Strategy Look Like for a Newly Established Company? In practice, the process for a newly established company can be structured as follows.

Step 1. Obtain Diia City resident status as soon as possible.

After registering the legal entity and preparing to operate under the special regime, it is advisable not to delay submitting the application for residency.

Under Article 4 of Law No. 1667-IX, a legal entity acquires Diia City resident status from the date the relevant entry is made in the Diia City register.

Step 2. Start meeting the EUR 1,200 requirement from the following month.

Starting from the calendar month following the month in which resident status is obtained, the company must ensure that the average monthly remuneration of its employees and GIG specialists is at least the equivalent of EUR 1,200.

This requirement must be met every month.

Step 3. Avoid reporting gaps for six months.

The company must properly document employment relationships and/or GIG contracts, calculate and pay remuneration, pay the relevant taxes and unified social contribution (SSC), and submit tax reports on time.

This is important because tax reports for six calendar months are used to confirm compliance with the specific Diia City resident criterion.

Step 4. Meet the other critical enterprise requirements in parallel.

It is important to understand that meeting the criterion applicable to Diia City residents does not by itself result in automatic critical enterprise status.

The company must also meet the other mandatory criteria set out in paragraph 2 of the Criteria under Resolution No. 76.

These include having no outstanding tax or SSC liabilities, as well as meeting the general requirements regarding remuneration levels and other criteria established by law.

Therefore, critical enterprise status should be planned comprehensively rather than based solely on the EUR 1,200 requirement.

Step 5. Prepare the documents for alternative confirmation at the beginning of the following year.

If the company does not plan to use the EUR 20,000 confirmation mechanism for the first three full months, it should prepare in advance to submit the annual compliance report and obtain an independent assurance report.

This mechanism, introduced by Resolution No. 1475, provides an alternative confirmation route for Diia City resident startups.

In practice, the process for a newly established company can be structured as follows.

Why This Decision Should Be Made When Establishing the Company

For a newly established company, the biggest challenge following the 2026 changes is not Diia City resident status itself, but the time lag between obtaining residency and being able to document the required indicators for critical enterprise status.

If a company delays obtaining Diia City resident status, for example, by three months, it effectively postpones the start of the six-month period required to confirm compliance with the EUR 1,200 remuneration requirement.

Therefore, the decision to say,“Let’s obtain Diia City residency later, once we start operating actively,”may prove disadvantageous.

Instead, the strategy of:

“Obtain Diia City residency as early as possible → ensure the EUR 1,200 requirement from the following month → build a six-month compliance record → meet the other critical enterprise criteria in parallel → prepare the annual compliance report and independent assurance report”

allows the company to establish the necessary legal and documentary foundation in advance.