In Uzbekistan, a three-year moratorium has been introduced on audits of small businesses

Three-year moratorium on small business inspections established in Uzbekistan

In Uzbekistan, a three-year ban on inspections has been introduced for the activities of small business entities.

At the same time, a number of exceptions are provided, including inspections within the framework of criminal cases, issues of citizen health and labor protection, appeals from citizens, VAT refunds, and the liquidation of enterprises.

This is stated in the Presidential Decree "On measures to implement the tasks defined during the VI open dialogue of the President of the Republic of Uzbekistan with entrepreneurs."

During the moratorium, conducting inspections of the activities of small business entities, except for the specified cases, will be considered illegal. Persons who allow illegal inspections to be conducted will be held accountable.

Inspections are maintained within the framework of criminal cases, as well as to study issues related to the impact of activities on human health and compliance with labor legislation.

In addition, exceptions are provided for appeals from citizens, issues of illegal value-added tax refunds, and in connection with the liquidation of business entities.

During the moratorium period, the Business Ombudsman — the Authorized Person under the President of the Republic of Uzbekistan for the Protection of the Rights and Legitimate Interests of Business Entities — will conduct "Effective Control" activities.

As part of this work, the activities of regulatory bodies in conducting inspections of business entities over the past three years will be studied directly on-site. Specialists will examine the materials of the conducted inspections and assess compliance with the legislation.

If violations by regulatory bodies are identified during the analysis, appropriate measures will be taken against them. In particular, if violations of the inspection procedure or facts of illegal interference are established, measures will be taken to restore the violated rights of entrepreneurs.

Botir Usmonaliev, head of a department in the office of the Business Ombudsman under the President of the Republic of Uzbekistan, noted that small business entities account for 99% of the total number of business entities.

According to him, an inspection in itself creates additional pressure and burden for entrepreneurs. Even companies that are just starting out or have been operating in the market for a long time can make mistakes at certain stages of their activities.

In such cases, the entrepreneur may be forced to focus not on the development and expansion of the business, but on eliminating identified or alleged violations.

According to Botir Usmonaliev's assessment, the three-year moratorium will allow small business entities to operate without fear of inspections and direct their resources and efforts toward development.

It is expected that thanks to this, entrepreneurs will be able to expand their activities and gradually transition to the next levels of business — from small to medium, and then to large entrepreneurship.

Separate opportunities and requirements are provided for different categories of business. As examples of small business entities, Botir Usmonaliev named shops, service enterprises, travel agencies, and other companies.

When transitioning from the category of small business to medium or large, the entrepreneur will operate taking into account the benefits and requirements provided for the corresponding category. The opportunities created specifically for small businesses will not be sufficient for higher-level enterprises.

Thus, the introduced moratorium is viewed as a measure aimed at reducing the administrative burden on small businesses and creating conditions for their further development.