During martial law, businesses must not only operate but also support the country’s economy and functionality. To this end, the government offers the opportunity to obtain the status of a “Critically Important Enterprise.” What does it mean, how can it be obtained, and what are its benefits? Let’s explore together.

 

What is the “Critically Important Enterprise” status?

This is a special status for companies whose activities are crucial to the economy, public welfare, or mobilization tasks. Companies with this status have the right to reserve employees from conscription, allowing them to retain key personnel and continue operations even under critical conditions.

The criteria for determining a critically important enterprise are outlined in Cabinet of Ministers Resolution No. 76 dated January 27, 2023 (https://bit.ly/4a5Y41H). Currently, there are 8 criteria. A company can qualify for the status if it meets at least three of these criteria:

1. The total amount of taxes, duties, and payments (excluding customs duties) and the unified social tax paid during the reporting fiscal year exceeds the equivalent of €1.5 million, as calculated by the weighted average official exchange rate of the National Bank of Ukraine for the same period. This must be confirmed by a certificate from the relevant tax authority.
2. The amount of foreign currency revenue (excluding loans and credits) for the reporting fiscal year exceeds the equivalent of €32 million, based on the National Bank’s weighted average official exchange rate for the same period, confirmed by a certificate from the servicing bank.
3. The company is considered strategically important for the economy and national security according to the list of state-owned enterprises with strategic significance.
4. The company is significant for its national economic sector or meets the needs of its local community. The criteria for this are established by relevant authorities or regional administrations in agreement with the Ministry of Economy and the Ministry of Defense.
5. The company has no outstanding tax liabilities and confirms this through an official certificate or a tax authority report.
6. The average wage of insured employees:
   • For state or municipal enterprises, or joint-stock companies with over 50% state or municipal ownership, must not be lower than the regional average wage for Q4 2021.
   • For other enterprises, the average wage must be no less than 2.5 times the national minimum wage, confirmed by an enterprise-issued certificate.
7. The company is a resident of Diia City.
8. The company provides electronic communication services and has monthly net income exceeding UAH 200 million (for mobile networks) or UAH 20 million (for fixed networks).

The company must not have any tax arrears, and the average wage must meet the minimum specified threshold.

 

Regional Criteria

Local authorities, considering community needs and in coordination with the Ministry of Economy and Ministry of Defense, may set their own criteria. For example, the Rivne Regional State Administration specifies criteria such as tax contributions, involvement in defense supply chains, or activities in agriculture, infrastructure, and export.

Details for other regions, like Lviv, can be found in their respective resolutions (https://bit.ly/40q5v0v).

Where to Apply?

Depending on the company’s sector, the status is granted by:

• Ministry of Economy: General inquiries.
• Ministry of Strategic Industries: Defense enterprises.
• Ministry of Energy: Energy sector companies.
• Ministry of Digital Transformation: Digital service providers.
• Regional Military Administrations: Local-level enterprises.

 

Steps to Obtain the Status

1. Document Preparation: Gather evidence confirming compliance with the criteria (e.g., tax payments, foreign currency revenues, or task execution).
2. Application Submission: Submit the required documents to the relevant authority.
3. Review Process: The authority reviews the application and makes a decision.
4. Status Assignment: If approved, the company is added to the Unified List of Critically Important Companies.

 

Key Points to Remember

• Accuracy: Errors in documents can lead to rejection.
• Operational Changes: Changes in company profile may result in loss of status.
• Automation: Employee reservation is managed via the “Diia” portal once the status is granted.
• Limitations: Companies can reserve up to 50% of military-eligible employees.

 

Benefits

Obtaining the “Critically Important Enterprise” status enables companies to:

• Ensure continuous operations by reserving key employees.
• Gain support during challenging conditions.
• Contribute to the country’s economy during wartime.

 

Conclusion

The “Critically Important Enterprise” status offers stability and responsibility. It allows businesses to become part of the country’s economic and strategic foundation. The process requires preparation, accurate documentation, and compliance with criteria. If your activities are vital to the state, this status ensures stability, team protection, and an opportunity to contribute to Ukraine’s victory.

 

For further questions, visit the website of the law firm “Honcharuk & Partners”:

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