The number of unplanned inspections of businesses has decreased significantly since the Russian government’s decision to limit the regulatory burden on enterprises reported Elvira Nabiullina, Russia’s Economic Development Minister.

The new rules took effect following President Dmitry Medvedev’s call for the government to reduce the burden imposed on small businesses, and the harassment they receive from government officials.

Tax and fire safety inspectors along with the extensive amount of paperwork required for enterprises, top the list for being the most disruptive to small businesses.

According to the government website, in the first quarter of the year, there were 405,000 inspections on small businesses. Of this figure, only 54 per cent of the total number of inspections was carried out on small businesses, which make up 68 per cent of the total number of businesses. This figure is down from 595,000 and 613,000 inspections in the third and fourth quarter of 2009, respectively. These are excluding inspections by tax authorities and law enforcement. 

Nearly 80 per cent of the governmental inspections are carried out by The Emergency Situations Ministry, the Federal Consumer Protection Agency, the Federal Service for Environmental, Technological and Atomic Inspection, the Federal Migration Service and the Federal Labour and Employment Service.

The new regulations will streamline the startup process in 20 sectors, easing the entry of new enterprises. This will encourage the spirit of entrepreneurship as it allows aspiring entrepreneurs to start certain types of enterprises without waiting for authorisation. 33,000 organisations were able to be established without being burdened by regulations.