Ukrainian Parliament Approves New Edition of State Supervision Law — Businesses to Receive New Opportunities

On April 8, 2025, the Verkhovna Rada of Ukraine adopted a new edition of the law concerning the fundamental principles of state supervision (control). This decision represents a crucial advancement in the reform of the oversight system for businesses in Ukraine. According to the Liga news agency, bill No. 14030, part of the Ukraine Facility program, was supported by 238 members of parliament in its second reading and overall.

This law introduces a voluntary audit mechanism that will allow low-risk enterprises to reduce the frequency of inspections. The Ministry of Economy of Ukraine has indicated that for businesses classified as low-risk, inspections will occur no more frequently than once every five years. This innovation aims to lessen the administrative burden on entrepreneurs and create a more favorable business environment.

According to the authors of the bill, the implementation of the voluntary audit mechanism is expected to decrease the number of business inspections by 30%. This significant reduction in oversight will alleviate the pressure on enterprises, enabling them to focus on developing their businesses rather than being subjected to constant scrutiny from state authorities.

Under the new regulations, all inspections will be required to be recorded via audio and video, ensuring transparency throughout the process. Additionally, entrepreneurs will have the ability to submit their explanations and objections to the supervisory authorities' acts online through an electronic cabinet, simplifying communication between businesses and the government.

The Office of Effective Regulation (BRDO) estimates that the economic effect of the state supervision reform for businesses will exceed 1.5 billion hryvnias in savings annually. This indicates that the new law has the potential to significantly improve the business climate in Ukraine and contribute to economic growth.

The law will come into effect after the state of martial law in Ukraine ends. This timing is critical as the reform of oversight occurs amidst numerous challenges posed by the war and its repercussions on the economy.

Earlier, in June 2025, President Volodymyr Zelensky of Ukraine announced that he had instructed the government to impose a moratorium on business inspections to protect entrepreneurs from undue pressure. On July 21, the National Security and Defense Council (NSDC) implemented a moratorium on business inspections, and on July 23, the Cabinet of Ministers approved a plan for the implementation of this decision, which includes a ban on unfounded inspections and interference in business operations.

On October 7, 2025, the Verkhovna Rada of Ukraine adopted the foundational bill No. 14030, which proposes to shift the state supervision system from a punitive approach to a partnership model. This reflects the government's intention to foster a more constructive dialogue with businesses and support their development in Ukraine.