Three-year moratorium on inspections of small business in Russia came into effect from 1 January

Three-year moratorium on inspections of small business in Russia came into effect from 1 January

MOSCOW, January 1. The law a three-year moratorium on inspections of small businesses comes into effect on 1 January 2016, he will relate both to individual entrepreneurs and legal entities that fall under the definition of small business.

“This law itself is victory for us, a step forward. I believe that the business will feel the results of efforts in this direction”, – said the President of “Business Russia” Alexey Repik.

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The law a three-year moratorium on planned inspections aims to simplify the conditions for small business and in part be a measure of support in a difficult economic situation.

According to the Thing, the law is not fully effective in isolation from the reform of Supervisory functions in the state. He noted that the moratorium should be supplemented by the introduction of risk-based approaches to audits, the departure from the “cane” system, expansion of opportunities for businesses to appeal unjust decisions.

“We know that the regulatory authorities to find the correct explanation is often the wrong actions. It is very important that in the complex situation was finally brought to those targets, which said the business”, – said Repik.

According to him, the measures stipulated by the law on the moratorium, should be systematic and permanent. “Three years will pass, life does go on, and therefore the problem must be solved as a whole”, – said the head of public organization.

He recalled that on December 3 2015 in annual address to the Federal Assembly Russian President Vladimir Putin “expressed some disappointment at the pace of work on the facilitation of doing business with excessive control and supervision”.

In accordance with the law, in force since 1 January 2016 to 31 December 2018, the moratorium will not affect small businesses operating in the field of health, education, social service, heating, electric power, energy conservation and energy efficiency.

However, a number of checks, the same will be saved. It is, in particular, on supervision in the sphere of industrial safety, fire, environmental supervision, supervision in the field of safety of hydraulic structures in relation to small businesses operating objects of the 1st or the 2nd class of danger, as well as the supervision in the field of radiation safety, monitoring the protection of state secrets, the supervision in the field of use of atomic energy.

In addition, the moratorium will not affect the license control related to companies, administering apartment buildings and external quality control of work of audit organizations.

The bill also enshrines provisions on the application of the risk-based approach in the organization of state control over business activity to reduce business costs and optimal use of Supervisory resources. This risk-based approach can be applied from 1 January 2018, and the government in certain cases, may decide not only about the lack of routine and field audits, but also to reduce or set a different period of the particular check.

The government of the Russian Federation has the right to determine certain types of state control that using a risk-based approach can be implemented until 1 January 2018.

The law was developed in the framework of implementation of tasks voiced by President Putin in the Message to the Federal Assembly in December 2014. He urged to abandon the “principle of total, endless control” and proposed to introduce a Supervisory holidays for small businesses.

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