Ukraine Prepares Overhaul of State Supervision for Business
The Verkhovna Rada Committee has recommended adopting draft law “On the Basic Principles of State Supervision (Control)” No. 5837 in its second reading. The bill aims to simplify control procedures, expand business rights, introduce new oversight tools, and clarify the legal and organizational framework of supervision.
Key Innovations for Entrepreneurs
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Right to Video Recording:
Businesses will be able to independently record inspections conducted by supervisory bodies. This step is expected to boost transparency and protect against potential abuse. -
Clear Legal Definitions:
For the first time, the law introduces terms such as “electronic office”, “audit”, and “rating of business entities”, creating a unified terminology base for state supervision. -
Balanced Business Responsibility:
The draft law sets liability for unjustified refusal to allow inspections or for obstructing them, ensuring fair play for both regulators and businesses. -
Expanded Rights and Support:
Businesses gain stronger rights and obligations, along with additional support mechanisms to navigate supervisory procedures. -
Audit as a Preventive Tool:
A new evaluation method — audit — is introduced to assess business performance and help prevent disputes with regulatory bodies. -
Defined Powers of Regulators:
The law clearly specifies the authority of specially designated supervisory agencies to avoid overlaps and conflicts.
Dual Recording Obligation
While state supervision bodies will be obliged to record inspections (planned or unplanned), businesses will also have the right to conduct their own recordings, either for the entire process or specific actions, at their own discretion.
If adopted, this legislation would significantly modernize Ukraine’s supervision system, making it more transparent, predictable, and investor-friendly — particularly important for attracting and retaining both domestic and foreign business activity.
