Since October 2023, the number of Diia.City residents has increased by 24 to more than 760 companies, according to a Facebook post by the Ministry of Digital Development on Friday.
“Businesses continue to choose Ukraine for development. More than 760 residents have joined the unique legal and tax space Diia.City,” the post reads.
It is noted that among the newcomers who joined Diia.City is Roboneers, a Ukrainian manufacturer of situational awareness systems and ground robotic systems. Robots produced by this company can follow military units on the battlefield and carry equipment. Nibulon, the leader in grain exports in Ukraine, has also joined Diia.City.
The Ministry of Digital Transformation added that the IT division of Nibulon Digital, which is currently working on e-document flow and an efficient farming system, has joined the special legal and tax regime.
The new residents include Itera, one of the most experienced Scandinavian technology companies specializing in communications and providing solutions in almost 20 countries; Melexis R&D, an international high-tech company that produces analog-to-digital chips for automotive electronics; and TAF Drones, a military-tech company that produces FPV drones, batteries, and other technologies for the Ukrainian army. As specified, in September, the company shipped 6 thousand FPV drones to the Armed Forces, and in November – more than 10 thousand.
In addition, DevLight, a Ukrainian mobile app developer, and CodeIT, a Kharkiv-based software company, have become residents of Diia.City.
According to the Ministry of Digital Transformation, at the end of October, the number of Diia.City residents reached 736.
The ministry reminds that the benefits of Diia.City include 5% personal income tax, 22% unified social tax, and 1.5% military duty on the minimum wage. In addition, the resident status of Diia.City gives an advantage when booking employees, reducing the number of required criteria that a company must meet to two out of six.
The Finnish manufacturer of telecommunications equipment Nokia in Ukraine has joined the country’s current legal and tax regime for IT companies Diia.City, the press service of the Ministry of Digital Transformation reported on Saturday.
“Residency will give the company the best legal and tax conditions, tools for attracting venture capital investments, and protection of intellectual property rights. Now, the company can develop more actively in Ukraine and contribute to the development of the digital economy,” Deputy Prime Minister for Innovation, Education, Science and Technology Development, Minister of Digital Transformation Mykhailo Fedorov wrote on his Telegram channel.
Soon Nokia plans to create a separate group of experts to restore the telecom infrastructure of Ukraine. The company is a partner of the Ministry of Digital Transformation in the development of the Internet and communications in Ukraine. Since the beginning of the full-scale invasion, Nokia has donated 5,000 routers to Ukraine, which are already providing Internet shelters in schools.
The total number of Diia.City residents has increased to 496 companies, the Ministry of Digital Transformation said.
The Diia.City project was awarded the Emerging Europe Awards, Deputy Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov said.
“The Diia.City project received the Emerging Europe Awards in the Modern and Future-Proof Policymaking nomination. The award celebrates the projects of countries that change the life of the developing region of Europe. The winners are chosen by people from all over the world who can vote online for their favorite project. This year, thousands of people took part in the voting, noting the importance of Diia.City,” Fedorov wrote on his Telegram channel.
The minister emphasized that “City was noted for its unique contribution to positioning Ukraine as a powerful IT hub, as well as for creating conditions for the development of companies and attracting investments.”
“I am sure that Ukraine will soon become the largest European IT hub. I am grateful to President Volodymyr Zelensky for the political will and full support in the launch of Diia.City,” Fedorov wrote.
The Ministry of Digital Transformation of Ukraine has received an application from Samsung for residency in Diia.City, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov said on his Telegram channel on Tuesday.
In addition, according to Fedorov, the Ukrainian IT company MacPaw also applied for residency in Diia.City.
Samsung Electronics is a company that introduces technologies in the world of smartphones, TVs, and home devices. It is a leader in the introduction and commercialization of innovative technologies in the markets of South Korea, the United States and Japan. In Ukraine, the official office was opened in December last year.
MacPaw is a Ukrainian IT company that has been developing software for Apple systems since 2008. It creates applications that make it easy to work on Mac. The most famous products are the CleanMyMac MacBook cleaner, the Gemini photo deletion program, and the alternative appstore Setapp.
Diia.City is a special legal and tax regime for IT, which involves a set of measures to stimulate the development of the high-tech industry.
Ukrainian developer and manufacturer of security systems Ajax Systems (Kyiv) has applied for residency in Diia.City, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov has said.
“Their product is one of the most high-tech in the world. Since its founding in 2011, the company has managed to grow 100 times, attract over $10 million in investments, and also get into the list of Ukrainian companies preparing for an IPO,” he wrote on his Telegram channel last week.
Fedorov also said that if in 2011 95% of the market was occupied by wired systems, then in 2021 about 70-80% belongs to wireless solutions, and Ajax itself occupies a leading position in this segment. Today, the company’s devices protect more than 1 million users in more than 120 countries around the world.
“It’s great that all the company’s products are developed and manufactured in Ukraine. Capacities include R&D offices in Kharkiv, Kyiv and Vinnytsia, as well as two factories in Kyiv,” he added.
As reported by Fedorov, as of February 10, a total of 44 companies have already applied for residency in Diia.City.
Not only Ukrainian, but also foreign companies are joining Diia.City today, President of Ukraine Volodymyr Zelensky said.
“We want not only Ukrainian, but also foreign companies to become residents of Diia.City. And as far as I know, both the first and the second, well-known, advanced our and foreign companies, are joining Diia.City today,” he said, opening the Diia.Summit on Tuesday.
