What do Kyrgyz entrepreneurs need to know to avoid illegal inspections? (Part 2)

Prepared by Daniyar Ubyshev,a lawyer in Partner law firm, Bishkek, Tel.: 00996 312 906 268, E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

In a previous publication we considered the law governing the procedure of inspections of businesses with an emphasis on types of inspections, procedures, grounds for conducting inspections, and the rights of businesses.

Today's article is devoted to the rights and responsibilities of authorized state agencies and inspection officials.

As noted in the previous article, the procedure of inspections is regulated by the Law of the Kyrgyz Republic ‘On Procedure for Conducting Inspections of Businesses’. This regulation stipulates the rights and responsibilities of state agencies, representatives, and entrepreneurs.

First of all, entrepreneurs need to know that the inspecting state agencies are required to:

• Conduct inspections only at the expense of the state budget;

• Conduct inspections on the location of entrepreneurs or their business;

• Not to use contradictions and discrepancies in the legislation against entrepreneurs;

• Explain to entrepreneurs the correct execution of the law.

While conducting an inspection, inspection officials should:

• Show to the entrepreneur their business card and an order for conducting an inspection;

• Register the entrepreneur in the book of inspection registrations;

• Conduct inspections in strict accordance with the order (the purpose and object of an inspection should be indicated in the order);

• Observe the entrepreneur’s working schedule (inspections should be conducted only during the entrepreneur’s working hours).

Also, auditors are required to provide regulations, governing the conduct of inspections, to entrepreneurs on demand.

One way to protect the rights of entrepreneurs is by the entrepreneurs to make a book of Inspection Registrations.  This book should include the following data about the inspection: the name of the inspection agency, the date/dates beginning and ending of the inspection, the grounds and object of inspection, the report of inspectors, and signatures of inspectors. Though entrepreneurs are not required to have this book, it can help to prevent abuse from inspection bodies.

Inspections of business entities should be based on orders or regulations from the authorized agencies. The order should include:

• Number and date of order;

• Name of the authorized state agency;

• Name, surname, patronymic of the authorized person(s);

• Name and address of the entity or business name, the name and surname of an individual entrepreneur, whose business will be inspected;

• The objectives pursued and the subject of inspection; the legal basis for the inspection;

• Start and end date of the inspection.

The order is signed, in duplicate, by the head of the authorized state agency and shall be certified by a seal.

It is necessary to know that the inspection can be conducted only by persons indicated on the order.

After the inspection, the inspector should make his report on the inspection in accordance with legislative requirements. The entrepreneur should receive one copy of this report.