New system of state supervision (control): what businesses should know

Ukraine’s Parliament has adopted a new framework law on state supervision (control), introducing a risk-based approach to inspections, expanding the rights of businesses during their conduct, and establishing a voluntary audit mechanism. The changes take effect upon the termination or cancellation of martial law.

On 8 April 2026, the Verkhovna Rada adopted the Law of Ukraine “On the Basic Principles of State Supervision (Control)” (draft law No. 14030) (the Law), which replaces the previous framework law in this area. The document is part of the Ukraine Facility legislative package, the implementation of which is a condition for Ukraine’s access to macro-financial support from the European Union.

The Law unifies the procedure for conducting state supervision (control) measures, establishes a risk-based approach, and harmonises national legislation with European standards in the field of regulatory activity.

Prerequisites for the adoption of the Law

The adoption of this law is explained by the fact that the previous system of state supervision was mainly focused on identifying formal violations and imposing fines, which created excessive administrative pressure on entrepreneurs, generated corruption risks, and significantly hindered business development. It is expected that the creation of a new system of state supervision will contribute to establishing a favourable and predictable environment for conducting business activities, developing small and medium-sized enterprises, and attracting investments.

Key changes

The Law introduces several systemic innovations for business:

The functionality of the unified digital system of state supervision is being expanded. The Law introduces an integrated information and communication system of state supervision (control) with a personal electronic cabinet for business entities. Through it, inspection plans, orders, directions, acts, prescriptions, sanctions, appeal results, court decisions, information on auditors and positive audit conclusions, etc., must be displayed. A significant part of this information will be open and free of charge.

The risk-based approach to scheduled inspections is maintained but becomes more formalised and transparent. The Law details the approach to determining the degree of risk and links the frequency of scheduled measures to it: for high-risk entities, no more than once a year, medium-risk, once every 3 years, low-risk, once every 5 years. If the risk criteria in a particular area are not approved, the entity is considered to have a low degree of risk. At the same time, the new law makes this model more transparent by integrating it into the electronic system and displaying relevant information in the business entity’s personal account.

Unscheduled measures are regulated in detail. The Law clearly defines the grounds for their conduct, limits the scope of inspection only to the issues that gave rise to such a measure, and explicitly prohibits repeated unscheduled measures on the same fact. For certain grounds, separate approval by a specially authorised body is required. Separately, the law establishes time limits for an unscheduled measure to verify compliance with a prescription: such a measure is carried out no earlier than the last day of the deadline for eliminating violations and no later than two months from that day. A business entity has the right to receive copies of the documents that served as the basis for such a measure.

Introduction of voluntary audit. Business entities will be entitled to initiate an audit of the state of their activities with the involvement of specialists from the relevant state supervision body or an independent organisation. This allows identifying and eliminating deficiencies before a scheduled supervision measure without imposing any sanctions. A negative conclusion following such an audit cannot serve as grounds for conducting unscheduled state supervision measures.

Encouragement of liability insurance. The Law provides for the possibility of increasing the interval between scheduled inspections for businesses with medium and low risk if they conclude a civil liability insurance contract for damage caused. At the same time, entities with a low degree of risk are fully exempt from scheduled supervision measures for the duration of the insurance contract (concluded for a period of at least one year).

The procedure for temporary suspension / resumption of activities, works, services, and operation of facilities by court decision has been clarified. The Law more clearly regulates the procedure for temporary suspension of production, performance of works, provision of services, and operation of facilities by court decision, as well as their subsequent resumption. This is of practical importance, in disputes with the State Emergency Service and other supervisory authorities that apply to the court with claims to suspend the operation of facilities, since after eliminating violations, the law establishes a more defined procedure for resumption and response timelines for the authority.

The Law provides for a special short court procedure in cases initiated by state supervision (control) bodies. Amendments to the Code of Administrative Procedure of Ukraine introduce special rules for the consideration of cases based on claims of state supervision bodies, in particular regarding the application of response measures and the obligation to admit officials to inspections. For such cases, shortened deadlines for filing claims and consideration are established, and court decisions are subject to immediate enforcement.

Mandatory video recording. Officials of the state supervision body are now required to record the entire process of conducting scheduled or unscheduled measures using audio, photo, and video equipment.

Introduction of a mechanism to ensure inspections. In case business entities create obstacles to officials of state supervision bodies during supervision measures, such authority has the right to apply to the court, in accordance with the procedure established by the Code of Administrative Procedure of Ukraine, with a request to oblige admission of officials to conduct such measures.

Liability of officials of state supervision bodies has been strengthened and detailed. The new law retains the basic mechanisms of liability that existed previously, but additionally explicitly provides for the responsibility of the head of the authority for violations committed by the body itself and links disciplinary measures to court conclusions and the systematic nature of violations. This makes the liability model not only material but also more managerial and disciplinary.

What should businesses consider?

The changes significantly expand the rights of businesses during inspections, so business entities should pay attention to the following aspects:

Right to own video recording. Businesses are granted the right to independently record the inspection process or each individual action of inspectors using audio, photo, and video equipment.

Protection from sudden inspections. Inspectors cannot start an inspection without the presence of the head or their representative (if they wish to be present), except in clearly defined cases. The law gives such people 4 hours to arrive at the enterprise.

New mechanism for resuming business activities after suspension. The law establishes a clear procedure for resuming business activities after violations are eliminated. From now on, the supervisory authority is obliged to respond to the relevant notification of the business within the procedure and time limits established by law. If the regulator does not make a decision on resuming operations in time, the enterprise has the right to immediately initiate court proceedings to cancel response measures, which are considered under the same priority rules as the suspension itself.

Voluntary audit as protection from inspections. The presence of a positive voluntary audit conclusion is a legal ground for increasing the period until the next scheduled inspection by 1.5 times.

Public oversight. For full and objective consideration of business complaints regarding appeals against decisions or actions of inspectors, Councils on state supervision (control) are created within supervisory bodies with the involvement of the public.

The Law enters into force on the day following its official publication, but is brought into effect from the date of termination or cancellation of martial law in Ukraine, except for certain of its provisions.