Can a Startup Obtain Critical Enterprise Status

For startup founders, maintaining their team and ensuring business stability is especially important under martial law. One effective mechanism that helps protect key specialists from mobilization is obtaining the status of a critical enterprise.

This status not only allows a company to reserve essential employees but also increases trust among clients, investors, and partners by demonstrating financial discipline and the company’s importance to the national economy. For startups in IT, telecommunications, or cybersecurity, it can serve as a significant competitive advantage.

At the same time, the procedure for obtaining this status involves several legal and organizational challenges. A startup must prove its economic importance, meet mandatory criteria such as maintaining a required wage level and having no tax debts, and properly prepare all necessary documentation.

In this article, we will explain whether startups can qualify for the status of a critical enterprise, what difficulties they may face, and how to overcome them. We will also share practical recommendations based on our experience providing legal support to IT companies.

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Can a Startup Qualify for Critical Enterprise Status?

Yes, Ukrainian law does not restrict startups from applying for the status of a critical enterprise. The main task for a company is to prove that it meets the criteria established by the Resolution of the Cabinet of Ministers of Ukraine.

To qualify, a company must confirm compliance with at least three criteria, including two mandatory ones:

1. Wage criterion. The average salary of insured employees for the previous calendar month must be at least 2.5 times the minimum wage (as of September 2025, not less than 20,000 UAH). It is important that this requirement be maintained consistently.
2. No tax debt. The company must confirm that it has no outstanding debts on taxes, fees, or social contributions.

An additional and highly effective criterion for IT businesses is Diia.City residency. This is the fastest and most convenient way for startups to obtain critical enterprise status, as it provides a more favorable tax regime. With Diia.City, a startup can secure this status in a short time.

Thus, even young companies without a long financial history can qualify for critical enterprise status. The key is to maintain stable payrolls and make full use of the opportunities offered by Diia.City.

Legal and Organizational Challenges for Startups

For established companies, proving their importance when applying for critical enterprise status is relatively straightforward because they usually have a tax history, stable financial performance, and well-developed internal processes. Startups, however, face several specific challenges:

• Young businesses often do not have a long accounting history, which makes it difficult to prove the stability of salary payments.
• Ensuring salaries of at least 20,000 UAH per employee requires financial discipline and proper budget planning.
• Even a small debt in social security contributions (ESV) or taxes can disqualify a startup from obtaining critical enterprise status.
• Startups must pay special attention to preparing the cover letter, which should convince the Ministry of Digital Transformation of the company’s importance to the economy or the IT sector of Ukraine.

Taking these factors into account helps avoid rejection and speeds up the process of obtaining critical enterprise status.

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How a Startup Can Obtain Critical Enterprise Status

Obtaining critical enterprise status for a startup requires careful preparation of documents and strong justification. Unlike companies with a long operational history, startups face the challenge of proving their economic and social importance at an early stage of development. However, our experience shows that this is entirely achievable with a well-prepared evidence package.

Key steps for startups:

1. To qualify for critical enterprise status, a company must confirm compliance with at least three criteria. The mandatory ones are:

• payment of an average salary to employees of at least 20,000 UAH (2.5 times the minimum wage);
• absence of tax and social security contribution debts.

For startups, the most practical third criterion is usually Diia.City residency, which confirms the company’s technological focus and alignment with modern IT sector standards.

2. Prepare supporting documents. The application must include the following:

• a certificate of average salary signed by the company director;
• a tax report for the last month stamped by the State Tax Service;
• a certificate confirming the absence of tax debt;
• an order from the Ministry of Digital Transformation of Ukraine confirming Diia.City residency.

3. Prepare a cover letter. This document is especially important for startups. It should:

• describe the company’s activities, including registration and tax identification details;
• explain why the startup is important for the economy and/or for supporting the Armed Forces of Ukraine;
• list the criteria the company meets and attach a list of accompanying documents.

4. All documents shall be submitted to the Ministry of Digital Transformation of Ukraine in electronic form. Formally, the review period is up to 10 business days, but in practice, it may take longer due to high demand.

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How We Help Startups Obtain Critical Enterprise Status

Our legal team specializes in supporting IT businesses and startups that aim to obtain critical enterprise status. We handle every stage of the process and minimize the risk of rejection by helping clients:

• conduct a preliminary audit to assess compliance with the criteria and identify the strongest arguments for approval;
• prepare all required certificates and documents in full compliance with legal requirements;
• draft a legally sound cover letter that clearly demonstrates the startup’s economic and social importance;
• oversee the submission process and monitor each stage of document review.

Your team is the heart of your startup. Protect your key specialists and ensure the stability of your company today. Submit a request to receive a clear action plan or complete legal support for obtaining critical enterprise status.

More information about our critical enterprise and employee reservation services is available here.