State Supervision (Control) Reform In Ukraine: New Rules For Business Inspections

June 2026 – The Government of Ukraine is introducing key updates to the system of state supervision (control). The changes centre on the digitalization of inspection procedures, the strengthening of procedural guarantees for business entities, and on implementing new mechanisms for carrying out inspections by state bodies along with the respective grounds for appeal of their decisions by the affected business entities.

General overview

On 8 April 2026, the Verkhovna Rada of Ukraine adopted Law of Ukraine No. 4840-IX “On the Basic Principles of State Supervision (Control)” (the “Law”). The Law significantly overhauls existing procedures for carrying out state inspections. It is designed to ensure full transparency, accountability and balance between public and private interests in the field of regulatory oversight.

The Law became effective on 24 April 2026. However, most of its provisions enter into force only after the termination or cancellation of martial law in Ukraine (in place since 2022).

Upon its entry into force, the new Law will replace the Law of Ukraine No. 877-V “On the Basic Principles of State Supervision (Control) in the Sphere of Economic Activity” dated 5 April 2007 (the “Law No. 877-V”) and the latter will be rendered invalid.

Like its predecessor, (Law No. 877-V), the new Law does not apply to some of the key sectors of Ukrainian economy, including:

• foreign exchange supervision,
• tax control,
• customs control,
• state export control,
• state supervision of financial services market,
• state supervision of organized commodity markets,
• protection of economic competition,
• state market surveillance and control of non-food products,
• anti-money laundering,
• energy services and utilities.

Instead, the above will remain governed by their relevant specific laws and regulators (e.g., the tax and customs authorities, the National Bank of Ukraine, the National Securities and Stock Market Commission, the Antimonopoly Committee of Ukraine, the National Commission for State Regulation of Energy and Public Utilities, etc.).

The Law does impose new state supervision rules in the following areas:

• food safety,
• the production, circulation, and use of animal feed,
• the handling of animal by-products not intended for human consumption,
• animal health and welfare,
• the handling of genetically modified organisms,
• the organic production, circulation and labelling of organic products,
• plants protection,
• geographical indications (GIs) for agricultural products and foodstuffs protections,
• traditional specialities guaranteed (TSGs) protections, and
• geographical indications (GIs) protections for alcoholic beverages.

1. The Integrated Information and Communication System of State Supervision (Control)

The Law introduces an Integrated Information and Communication System of State Supervision (Control) (the “System”) featuring personal e-cabinets for business entities to digitalize and automate the planning and organization of inspection procedures. 

The System will display information on business entities, inspection plans, orders, directions, acts, prescriptions, sanctions, appeal results, and so on. Information of a secret nature will not be included in the System, while confidential information may be included only with the prior written consent of the respective owner.

Access to the System will be free of charge via the Internet.

2. Risk-based approach to inspections

The Law introduces a risk rating for business entities that will determine the frequency and duration of inspections:

• high-risk – no more than once a year, with a duration of up to 10 business days;
• medium-risk – no more than once every three years, with a duration of up to 7 business days;
• low-risk – no more than once every five years, with a duration of up to 5 business days.

The business entity rating system is essentially a list of business entities subject to inspection, compiled by the state supervisory (control) authority in descending order based on the total points assigned to each entity. Points are assigned based on the risk of potential negative consequences arising from the respective business entity's activities.

The rating is confidential and accessible only to the respective business entity through its e-cabinet in the System.

3. Planned inspections

Planned inspections will be carried out in accordance with annual plans approved by the competent state supervisory (control) authority (the “Supervisory Authority”).

• The planned period covers the calendar year from January 1 to December 31.
• The given Supervisory Authorities must prepare annual plans by October 15 of the year preceding the subsequent (scheduled) year.
• After October 15 of the year preceding the subsequent (scheduled) year, no amendments may be added to the annual plans (except for technical corrections).
• The annual plans must be published on the official websites of the Supervisory Authorities and in the System no later than by December 1 of the year preceding the subsequent (scheduled) year.
• If the business entity is subject to supervision by several Supervisory Authorities, or subject to various areas of supervision (control), a combined planned inspection may be carried out. The business entity may refuse such an inspection by submitting a written notification up to November 10 of the year preceding the subsequent (scheduled) year.
• The total duration of all planned inspections may not exceed 30 business days (or 15 business days for micro and small business entities).

Arbitrary extensions of planned inspection durations are prohibited.

4. Unscheduled inspections

Unscheduled inspections may be carried out via an exhaustive list of grounds specified by the Law, namely:

• at the request of the given business entity;
• where inaccurate data in reports or declarations is determined (if such inaccuracies have not been corrected within the established time limit);
• to ensure compliance with the instructions of the Supervisory Authorities regarding the elimination of violations by the respective business entity;
• to verify compliance with licensing requirements;
• where discrepancies are identified in data submitted to the Supervisory Authorities and the data contained in state information resources;
• where a failure has occurred to submit mandatory reports for two consecutive reporting periods without providing a written explanation;
• injuries, fires, or deaths resulting from an accident or illness related to the business entity’s activities;
• as a result of a court decision;
• as a result of notifications or complaints issued by the state authorities, local self-government authorities, inpiduals or legal entities.

The durations of unscheduled inspections depend on the relevant determined risk level:

• high-risk – up to 10 business days;
• medium-risk – up to 5 business days;
• low-risk – up to 2 business days;
• for micro and small business entities – no more than 2 business days.

Arbitrary extensions of unscheduled inspection durations are prohibited.

In cases where an expert examination (testing) of product samples is required, the inspection period is suspended for the duration of such an examination.

By February 1 of each year, the Supervisory Authorities are obliged to prepare and publish reports on any unscheduled inspections carried out during the previous year in the System and on their official websites.

5. Results of inspections

Following a planned or unscheduled inspection, the Supervisory Authority is obliged to prepare a corresponding report in statutory form.

In cases of violations of applicable requirements by a business entity, the Supervisory Authority may issue:

• prescription or other document outlining measures to eliminate the identified violations detailing specific steps to be carried out by the business entity to bring its activity in line with applicable rules; or
• decision on the imposition of sanctions (fines) or other mitigation measures.

The relevant document must be drafted in two copies, one of which is provided to the business entity no later than 5 business days after the publication of the report.

6. Audits as a preventive tool

The Law introduces the concept of an audit of a business entity's activities aimed at identifying and eliminating violations prior to a planned inspection, and thus without sanctions. The key mechanisms of an audit as a preventive tool are:

• an audit may be carried out by an independent auditor or by the Supervisory Authority (together the “Auditors”) at the request of the business entity;
• an independent auditor must conclude an agreement with the given business entity within 10 business days from the date of receipt of a request;
• the Supervisory Authority must carry out an audit no later than 3 months from the date of the receipt of a request; the independent auditor must carry out the audit within the terms specified in the agreement, but no later than within 3 months from the date of receipt of the request;
• the total duration of an audit may not exceed 45 calendar days;
• in case of identified deficiencies, the Auditor provides remedial recommendations within an agreed deadline;
• verification of compliance with such recommendations, and the drafting of the respective audit report, are carried out within the overall auditing period;
• if the recommendations are assessed as not fully implemented, the Auditor issues a report indicating the identified deficiencies (a negative audit report);
• the audit report must be published no later than 5 business days after the completion of the audit;
• a negative audit report cannot serve as the basis for carrying out unscheduled inspections; and
• a positive audit report will reduce the frequency of planned future inspections by a factor of 1.5 (for example, 7.5 years instead of 5 years).

7. Appeal mechanism

The Law establishes a two-level administrative appeal mechanism allowing business entities to administratively challenge inspection results prior to initiating court proceedings.

Level I. Challenging via the Supervisory Authority:

• a business entity may submit an objection to a decision by a Supervisory Authority directly to the respective Supervisory Authority;
• appeal deadline: 10 business days from the date of receipt of a decision or the signing of the respective inspection report;
• the Supervisory Authority must either address the grounds for the stated objections or refer the matter to the Advisory Council on State Supervision (Control) (the “Advisory Council”) within 10 business days, notifying the given business entity accordingly;
• the Advisory Council's conclusions are advisory in nature, but must be formally considered by the head of the Supervisory Authority;
• the Supervisory Authority must provide a final decision within 10 business days from the date of receipt of the Advisory Council's findings.

Level II. Challenges via a specially authorized supervisory body:

If an objection is not satisfied (fully or partially) by the Supervisory Authority, the business entity may file an appeal with a specially authorized supervisory body within 10 business days from the date receipt of relevant decision (on not satisfying the complaint partially or in full) from the Supervisory Authority.

The specially authorized supervisory body must consider the respective appeal and issue a relevant order within 10 business days. The order is mandatory for the Supervisory Authority, i.e., the specially authorized supervisory body may instruct the Supervisory Authority to review the business entity's complaint in a particular manner.

Court proceedings:

A business entity is also entitled to challenge inspection results via court proceedings at any time and without necessarily exhausting the route of administrative challenge.

8. Additional guarantees for business entities during inspections

The Law introduces a set of binding guarantees for business entities and expands the role of civil society in the inspection process.

• Unlike Law 877-V, the new Law obliges the Supervisory Authority to document inspections via the use of audio-visual equipment.
• The head of the given business entity, or an authorized representative (which may be nominated by phone), must arrive at the inspection site within 4 hours of the Supervisory Authority’s arrival.
• The Supervisory Authority cannot request documents that have already been provided or are available in the state public registries.
• The seizure of original documents, computers, and their components is prohibited (except for cases where criminal procedural law applies).
• Civil society organizations are entitled to protect the rights of business entities during inspections.
• Business entities may engage third parties (advisors, lawyers, representatives) who have the right to be present during inspections, review inspection materials, and to participate in Advisory Council hearings.
• The Law clearly stipulates that the production or sale of goods, performance of works, use of land plots, operation of territories, houses, buildings, structures, and their parts, machinery and equipment, as well as the provision of services by business entities may be temporarily suspended in whole or in part only via a court order and not by a Supervisory Authority decision.

Recommendation:

Although no immediate action is required from business entities (since the Law will largely not enter into force until martial law is terminated or cancelled), we recommend keeping track of when the System becomes operational. Check how many points the Supervisory Authority assigned to your business, based on the risk of potential negative consequences from its activity. This will affect the frequency of planned inspections, which can also be tracked within the System.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.