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Uzbekistan imposes moratorium on inspection of entrepreneurs

26 January 2018

Uzbekistan has imposed a moratorium on inspections of financial and business activities of business entities, with the exception of inspections conducted in criminal cases and in connection with the liquidation of a legal entity.

This is stipulated by the presidential decree "On the State Program for the Implementation of the Action Strategy on five priority development directions of Uzbekistan in 2017-2021" in the Year of Support of Active entrepreneurship, innovative ideas and technologies."

Under the decree, the President abolished the Republican Council for Coordination of the Activities of the Control Authorities from April 1,2018. At the same time, the head of state handed over 228 authorized units of the state tax service to the prosecutor's office.

Since April 1, the duplicating functions and powers of the justice bodies to protect the rights and legitimate interests of small businesses, private entrepreneurs, foreign investors and enterprises with foreign investment are excluded.

Under the presidential decree, the audit of financial and economic activities conducted within the framework of criminal cases should not exceed one month, in exceptional cases, the period of verification may be extended for not more than one month by the General Prosecutor of the Republic of Uzbekistan or his deputy.

The launch of criminal cases on facts related to offenses in the conduct of entrepreneurial activity is carried out exclusively with the consent of the prosecutor of the Republic of Karakalpakstan, regional prosecutors, the city of Tashkent and equal prosecutors.

Information on violations in the activities of business entities, information about the inspections and monitoring (the basis, time of inspections or monitoring, employees who conducted them, and others) and the measures taken to eliminate the violations are included in mandatory manner into a special electronic information system of the prosecutor's office.