The Verkhovna Rada of Ukraine on the second reading adopted bills 2418а, 2531а to liberalize the system of state supervision (control) in the sphere of economic activity.

The bill 2418а provides for the creation of transparent rules of conducting inspections for the majority of authorities (supervision, control) and defines clear rules of the game for these bodies. In addition, it creates an integrated system of state supervision (control), and introduces the concept of “presumption of innocence”, when the differences in the legislation are interpreted in favor of business.

The bill 2531а introduces administrative responsibility for violation of the exercise of control.

The procedure for exercising state supervision (control) should become more transparent, as a supervisory authority will have to post on its website the standardized form of the act for inspection, which contains a complete list of issues that concern the business entity.

By reducing duration and frequency of inspections, costs of business for cooperation with a supervisory authority will be reduced by 65%.

Liberalization of the system of state supervision (control) also provides for the establishment of an integrated automated system.

Duration of scheduled inspections should not exceed 10 days for large companies and 5 days for small businesses. All scheduled inspections cannot last longer than 30 working days (big business) and 15 working days (small business).

In addition, the law establishes the frequency of inspections for businesses of all degrees of risk:

• every two years for companies with a high degree of risk,

• every three years for enterprises with a medium level of risk,

• every five years for companies with negligible risk.

A bill 3153 was also adopted, which extends the moratorium on business inspections until June 30, 2017.