Obtaining Critical Enterprise Status for a Telecommunications Company
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Our legal team actively supports Ukrainian businesses in obtaining employee exemptions from mobilization and securing critical enterprise status. Even in complex and unconventional cases, we are ready to take on the challenge. Recently, a Kyiv-based company providing subcontracting services to mobile network operators reached out to us for assistance in obtaining critical enterprise status.
After reviewing their documentation, we identified potential pathways. The company met two key criteria:
- No outstanding Unified Social Contribution (USC) payments
- Compliance with the required average salary level
However, they faced challenges with the third criterion, which also had to be met. To resolve this, we worked closely with the client to explore possible solutions. Read on to find out how we successfully handled tё11he case.
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Updated Criteria from the Ministry of Digital Transformation
In August 2024, the Ministry of Digital Transformation introduced changes that made it more difficult for some companies to obtain critical enterprise status. One of the key new requirements states:
a company must supply the core of an electronic communications network to
- Providers of electronic communication services operating mobile networks;
- Data center service providers;
- Providers of electronic communication networks that grant access to Internet traffic exchange networks, designated by the Ministry of Digital Transformation as critical for the economy and essential public services during emergency periods in the digital sector.
As we can see, this criterion actually consists of three specific conditions. First, it applies strictly to the supply of network core infrastructure. Our clients had contracts not only for supplying the network core but also for network construction and the development of mobile communication infrastructure.
Second, the criteria clearly define who must receive these services. But how can a company verify whether its client meets these requirements? In Ukraine, there is a dedicated registry. Until 2022, it was called the Registry of Telecommunications Operators and Providers, and it is now known as the Registry of Electronic Communications Network and Service Providers. This registry is publicly accessible. In our client’s case, only one of their three customers was missing from the list.
Additionally, it is crucial to check whether the supplier is included in the list of enterprises, institutions, and organizations that have been granted critical enterprise status. However, this list is no longer publicly available, meaning this information must be verified directly with the contracting entity. The Ministry of Digital Transformation has also established other criteria, but they were not applicable to our client’s case. Therefore, we proceeded to analyze the criteria set by the local territorial community.
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Criteria Set by the Local Territorial Community
Since our client’s company was registered and operated in Kyiv, we analyzed the directive issued by the Kyiv City State Administration, which outlines the criteria for recognizing a company as critical for the territorial community. A key feature of these criteria is that the services must be provided either directly to the Kyiv City Council or the Kyiv City State Administration, to enterprises owned by the Kyiv territorial community, or to government authorities operating within the city.
What Services Can Be Recognized as Critical by the Territorial Community?
We identified the most relevant activities for our client’s company, including:
- Administration and/or maintenance, modernization of information, electronic communication, and information-communication (information-telecommunication) systems
- Cybersecurity services for information, electronic communication, and information-communication (information-telecommunication) systems
- Provision of services and/or execution of work, and/or supply of goods in the field of information technology
- Data center services
Since our clients had previously collaborated with municipal enterprises before the introduction of martial law but were no longer engaged in such partnerships, we opted for the first approach—submitting documents based on the new criteria. The document preparation process included:
- Drafting a cover letter.
- Calculating the average salary – Since the submission took place in Q4 2024, we had to calculate the average salary for Q3.
- Confirming the submission of reports for Q3.
- Obtaining a recent tax status report from the State Tax Service’s online system to verify the company’s financial standing.
- Preparing a letter from the company detailing the active contract, its subject, key terms, and validity period with the relevant service provider.
- Obtaining a confirmation letter from the supplier, verifying that the company had fulfilled its contractual obligations.
- Signing all documents electronically – The cover letter and each attachment had to be signed with an electronic signature.
The cover letter and all attachments had to be signed with an electronic signature. The completed and signed document package was submitted to the Ministry of Digital Transformation via email.
Review Process for Obtaining Critical Enterprise Status
The review period for obtaining critical enterprise status is 10 business days (approximately two weeks). Based on our experience, decisions are typically issued on the tenth business day, as was the case for our client. After two weeks of waiting, they received official confirmation recognizing their company as critical to Ukraine’s digital economy.
Our legal team successfully guided the Kyiv-based company through this complex process, securing a status vital to maintaining its operations. Every step required meticulous analysis of the criteria set by the Ministry of Digital Transformation and local territorial communities, allowing us to determine the most effective strategy to achieve the desired outcome.
If your business also needs to obtain critical enterprise status, don’t waste time navigating complex legal procedures on your own. Our experienced legal team is ready to guide you through the entire process with minimal effort on your part.
Contact us today for expert consultation and legal support to ensure your business secures the status it needs to operate smoothly, even in the most challenging conditions.
