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The defense agency explained the procedure for granting Defence City resident status to enterprises of the defense-industrial complex, as well as the key advantages of this regime.
The relevant information was published on January 2 on the website of the Ministry of Defense of Ukraine.
This concerns a phased procedure for submitting documents, applicant requirements, review timelines, and the opportunities opened by residency — from tax incentives and enhanced protection of production facilities to relocation and restriction of access to sensitive information in public registers.
Defence City is a special legal regime of state support for defense industry enterprises.
Its main goal is to transform the sector into a high-tech, resilient, and competitive cluster capable of scaling up the production of weapons and military equipment.
The regime is open to enterprises that are of strategic importance to the state’s defense capability and meet established criteria.
Obtaining resident status
Step 1. Conducting an internal audit to assess eligibility for joining Defence City
At this stage, enterprises are recommended to conduct an internal audit for compliance with the requirements of Article 37 of the Law of Ukraine “On National Security of Ukraine” and, based on the results, decide on the expediency of acquiring resident status and preparing documents.
Step 2. Submission of an application to the Ministry of Defense for Defence City resident status
At this stage, the enterprise prepares and submits the following documents provided for by law to the Ministry of Defense:
- Application for granting Defence City resident status, which must include:
— full name of the applicant, applicant identification code in the Unified State Register of Enterprises and Organizations of Ukraine, location, and contact details (email address, contact phone number);
— surname, first name, patronymic (if available), date and place of birth, taxpayer identification number (if available), series and number of the passport of a citizen of Ukraine (or another identity document that may be used in Ukraine to conclude transactions) of the applicant’s official, namely the head, a member of the executive body, chief accountant, or another person responsible for accounting (if this function is not performed personally by the head);
— list of types of activities carried out by the applicant;
— information on compliance with the requirements established by Part Five of Article 37 of the Law “On National Security of Ukraine”;
— information on the performance of state defense procurement contracts in the previous calendar year, as well as participation in such contracts as a co-executor/subcontractor for the purpose of calculating qualified income; - Compliance report (initial);
- Annexes to the compliance report, namely the annual financial statements of the Defence City resident for the reporting year prepared in accordance with legislation, and the audit report issued by an auditor authorized under the Law of Ukraine “On Audit of Financial Statements and Auditing Activities” to conduct mandatory audits of public-interest enterprises;
- Certificate of absence of arrears in payments controlled by supervisory authorities, or an extract from the information system of the State Tax Service regarding the taxpayer’s settlement status with the budget and target funds, certified by the applicant’s head;
- Power of attorney or its copy, duly certified, if the application is submitted by a representative.
Documents are submitted:
- Electronically (with an electronic signature) to: [email protected]
or - In paper form to: 6, Air Forces Avenue, Kyiv, 03168, Ukraine.
Following receipt, the Ministry of Defense either accepts the documents or returns them without consideration.
If returned without consideration on the grounds provided in Part Five of Article 38 of the Law “On National Security of Ukraine,” the applicant is notified within five working days.
Step 3. Verification of documents by the Ministry of Defense
At this stage, the application and compliance report are reviewed, including using the Methodology for calculating qualified income.
Verification includes:
- compliance with Part Five of Article 37 of the Law “On National Security of Ukraine”;
- accuracy of the submitted information;
- absence of grounds for refusal.
Based on the review, the Ministry of Defense decides:
- to grant resident status; or
- to refuse to grant resident status.
The Ministry of Defense considers the application within 10 working days from receipt and makes a decision unless grounds for returning the application without consideration are identified.
Step 4. Entry into the Defence City Register
If documents comply, the decision is formalized by an order of the Ministry of Defense, and a register entry is created.
The order and an extract from the Register are sent to the applicant.
From the date of the decision and entry into the Register, the enterprise acquires Defence City resident status.
Residence in the Register
Use of incentive measures
A Defence City resident may independently direct tax-exempt profits to permitted purposes. Use of tax incentives is optional. If profits are directed to non-permitted purposes, incentives do not apply.
Restriction of access to public electronic registers
If necessary, a resident may decide to restrict access to information in public registers by submitting a request to the Ministry of Defense. Access is restricted for the duration of residency.
Relocation and enhanced protection of production facilities
A resident intending to relocate or implement protection measures may apply to the Ministry of Defense for coordination and support, including financial support.
Upon approval, the Ministry informs the applicant and relevant authorities to ensure coordination and implementation.
Detailed procedures and documentation requirements will be published separately.
Annual compliance reporting
Residents must annually submit a compliance report, financial statements, and an audit report.
The Ministry either accepts the report or returns it without consideration if mandatory information is missing.
Analysis of the annual report
The Ministry confirms compliance or initiates corrective procedures.
Control over use of tax-exempt profits
The Ministry monitors use of profits and may identify either compliance or misuse, potentially initiating loss of status.
Violation response procedure
The Ministry may request explanations; outcomes include remediation or preparation of a decision on loss of status.
Exit from the regime
In case of voluntary withdrawal or violations, the Ministry decides on termination or loss of resident status, resulting in removal from the Register and cessation of incentives.
Regulatory framework
- Cabinet of Ministers of Ukraine Resolution No. 1745 of 17.12.2025
“Certain Issues of the Legal Regime of Defence City”
Cabinet of Ministers of Ukraine Resolution No. 1746 of 17.12.2025
“On Approval of the Procedure for Relocation and Measures to Enhance Protection of Production Facilities of Defence City Residents”.
