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Uzbekistan to cancel all unscheduled business inspections

6 October 2016

Uzbek acting President Shavkat Mirziyoyev signed a decree on additional measures to ensure the accelerated development of entrepreneurship, the full protection of private ownership and qualitative improvement of the business climate in the country.

The decree, published in the Uzbek media outlets, establishes a number of fundamentally new mechanisms of state control, aimed at providing reliable legal guarantees against unjustified interference in the activities of business entities.

In particular, starting from January 1, 2017, all kinds of unscheduled inspections over activities of business entities, counter checks of activities of business entities, including in criminal cases, will be abolished.

Thus, regulatory authorities of Uzbekistan won’t have the right to initiate unscheduled inspections.

In order to ensure legal mechanisms for the protection of the rights and interests of citizens, short-term inspections will remain limited only on the basis of appeals of individuals and legal entities on violations of the law. Such inspections can be carried out exclusively by the decision of the Republican Council of Uzbekistan, and its duration will be limited to one working day.

The decree provides for such drastic new measures as the exemption of businesses and their employees, who made financial and economic violations for the first time from all kind of liabilities.

Entities carrying out an entrepreneurial activity without state registration will be also exempt from liability, in the case of compensation for their damages and of the voluntary elimination of the consequences of violations within the established deadlines.

In addition, a criminal penalty of deprivation of the right to engage in entrepreneurial activities in respect of businesses will be prohibited.

These standards not only preclude double punishment of businesses, but also provide an opportunity for citizens, first-time offenders, who compensated their guilt, to continue their business activities without negative consequences.

In this regard, appropriate amendments will be made to the Penal Code, the Code of Uzbekistan on Administrative Responsibility, the Tax Code and other laws.