Protection of Foreign Business in Relations with Ukrainian State Authorities
Foreign companies in Ukraine have the same core protection mechanisms as domestic businesses: rights during inspections, administrative appeals, complaints to the Business Ombudsman Council, and access to administrative courts. The correct response depends on the authority and the type of procedure because general supervision, tax and customs control, and criminal proceedings follow different rules. Before refusing access, filing an appeal, or responding to a search, the company should identify the applicable regime, preserve the documents, and engage Ukrainian counsel.
Foreign businesses in Ukraine deal with the same state authorities as local companies: the State Tax Service, Customs, sector-specific regulators, law enforcement bodies, and local government. The practical difference lies in procedural knowledge. A foreign company or its Ukrainian subsidiary is often less familiar with the specific mechanisms available to challenge unlawful decisions, actions, or inaction by Ukrainian authorities.
This overview is intended for foreign companies, their Ukrainian subsidiaries and representative offices, investors, and the legal, finance, and compliance teams responsible for relations with Ukrainian state authorities.
1. State authorities foreign businesses deal with
2. Legal safeguards for foreign companies
3. Company rights during a state inspection
4. Administrative appeals against authority decisions
5. Business Ombudsman Council as a pre-trial mechanism
6. Protection of foreign companies in administrative court
7. Company response during a BES investigation
8. Document management as the first line of protection
9. Inspections under martial law
Frequently asked questions
How DLF can help
1. State authorities foreign businesses deal with
Identifying the responsible authority is the first step to choosing the right protection mechanism.
| Authority | Area of interaction | Available protection |
|---|---|---|
| State Tax Service | Inspections, tax assessments, financial penalties | Administrative complaint, BOC, administrative court |
| State Customs Service | Clearance, delays, customs rulings | Administrative complaint, BOC, administrative court |
| Bureau of Economic Security (BES) | Economic crime investigations, searches | Criminal proceedings (CPC), legal representation, BOC |
| Sector-specific regulators | Licences, permits, compliance inspections | Administrative complaint, administrative court |
| Local government bodies | Permits, land use, public contract performance | Depending on the nature of the dispute: administrative complaint, BOC, administrative or commercial court |
BOC — Business Ombudsman Council; mechanism described in section 5.
Each authority operates under a separate legislative framework with its own procedures and timelines. The specific regime that applies to a given inspection or decision materially affects the choice of protection mechanism.
2. Legal safeguards for foreign companies
Ukrainian law does not discriminate against foreign companies in their dealings with state authorities. Key legislative instruments expressly confirm equal rights.
The Law on Basic Principles of State Supervision (Control) in the Field of Economic Activity sets the general standards for state inspections, which are binding on most controlling authorities. It specifies what documents inspectors must present, the notice periods they must observe, inspection duration limits, and the rights of the business under inspection.
The Law on Administrative Procedure, in force since December 2023, governs how decisions of executive authorities and local government bodies can be challenged. It expressly provides that foreigners and foreign legal entities are participants in these proceedings on equal terms with domestic entities.
Article 5 of the Code of Administrative Justice of Ukraine guarantees that foreigners, stateless persons, and foreign legal entities have the right to court protection on equal terms with Ukrainian citizens and legal entities.
The Law on the Bureau of Economic Security defines the BES mandate to investigate economic crimes. The rights of businesses during a BES-initiated search, temporary access, or seizure are governed by the Criminal Procedure Code of Ukraine, not by the BES Law alone.
3. Company rights during a state inspection
The Law on Basic Principles of State Supervision establishes the minimum standard of rights for any business under inspection, along with the corresponding obligations on inspectors.
Before the inspection begins. Inspectors are required by law to present two documents: an inspection certificate (referral) and a personal service ID. If these documents are not presented or do not comply with statutory requirements, the company has the right to refuse entry.
For scheduled inspections, written notice must be served at least 10 days in advance. The notice must specify the inspection’s start and end dates, the company’s name, and the name of the inspecting authority.
The notice is sent by registered mail and/or by electronic means, or delivered personally against signature to the head or an authorised representative of the business entity—a legal entity, its separate subdivision, an individual entrepreneur, or the entrepreneur’s authorised representative.
Right to refuse entry. Article 10 of the Law entitles a company to bar inspectors where:
- the inspection certificate (referral) or service ID has not been presented;
- the advance notice period for a scheduled inspection was not observed;
- the inspection’s duration or grounds conflict with statutory requirements;
- the required authorisation or approval for an unscheduled inspection is absent.
Prohibited conduct. During an inspection governed by the general state supervision law, inspectors may not seize original financial or accounting documents, computers, or computer parts. The company may audio- and video-record the inspection. This prohibition must not be treated as a restriction on a court-authorised search, temporary access, or seizure conducted under the Criminal Procedure Code.
The maximum duration of an unscheduled inspection is 10 working days, and 5 working days for small businesses.
Liability for unlawful inspections. The law provides for compensation from the state budget for damage caused by unlawful decisions, actions, or inaction of a supervising authority, with recourse against the responsible officials. In practice, recovery normally requires separate court proceedings and evidence of unlawfulness, loss, and causation.
Caveat. These rules apply only to measures covered by the general state supervision law. Tax and customs inspections follow special procedures under the Tax Code and Customs Code, while searches and other investigative actions are governed by the Criminal Procedure Code. Before refusing access, the company should verify the legal basis of the specific measure and engage counsel immediately.
4. Administrative appeals against authority decisions
The Law on Administrative Procedure, in force since December 2023, established a general procedure for challenging decisions of executive authorities and local government bodies.
An administrative complaint is an optional procedure. The company may choose either the pre-trial administrative route or go directly to an administrative court. A rejected complaint does not foreclose court proceedings.
Deadlines. A participant in the administrative proceeding may file a complaint within 30 calendar days after the administrative act is brought to its attention. A person who was not a participant may complain within 30 calendar days after it learned, or should have learned, that the act adversely affected its rights or interests. Review should generally be completed within 30 calendar days and may be extended once by no more than 15 days. Special legislation may set different deadlines.
Procedural rights. Participants in administrative proceedings have the right to access the case materials, submit evidence, file motions, be informed of the outcome of the case, reach a settlement at any stage of the administrative complaint proceedings, challenge an administrative act, a procedural decision or action, or the administrative authority’s inaction in the manner prescribed by law, engage specialists, and participate in the proceedings.
Equal rights for foreign legal entities. The Law expressly provides that foreigners and foreign legal entities participate on equal terms with domestic entities. No additional requirements are imposed on foreign companies.
Scope limitations. The Law does not apply to criminal or court proceedings or to national security matters. The Tax Code and Customs Code also set separate appeal procedures and deadlines, so the general 30-day rule should not be applied automatically to a tax or customs dispute.
5. Business Ombudsman Council as a pre-trial mechanism
The Business Ombudsman Council (BOC) is a standing consultative and advisory body of the Cabinet of Ministers of Ukraine, established with the participation of the Government of Ukraine, the EBRD, the OECD, and leading business associations. The BOC handles complaints independently, confidentially, and free of charge.
According to the BOC’s published results for 2015–2025, the institution received more than 14,000 complaints, completed more than 9,500 cases, and reported a positive financial impact for businesses of UAH 33.7 billion (approximately USD 752 million). These are historical BOC figures, not an indication of the likely outcome of any particular complaint.
Coverage. The BOC accepts complaints against the State Tax Service, Customs, sector regulators, local government bodies, and law enforcement agencies. In October 2025 the BOC concluded a cooperation memorandum with the Bureau of Economic Security, enabling BOC involvement in complaints related to BES conduct.
Access for foreign companies. BOC materials expressly address both Ukrainian and foreign entrepreneurs. A complaint may be filed by any natural person or legal entity engaged in business activities in Ukraine; a legal entity must state its official registration number (identification code), if any. The complaint must concern alleged malpractice by a state or municipal authority, be filed no later than one year after the relevant event, not be subject to court or arbitral proceedings or an existing decision, and—where applicable—follow at least one available administrative appeal.
What the BOC can and cannot do. The BOC is not a court and does not issue binding decisions. It investigates the complaint, engages with the relevant authority, and makes recommendations supported by its institutional standing and cooperation mechanisms with public bodies. It does not replace litigation, legal representation, or a statutory appeal procedure; its role is to address maladministration within its mandate.
6. Protection of foreign companies in administrative court
If an administrative complaint did not produce a result, or if the company opted directly for the court route, the matter is heard by an administrative court.
Article 5 of the Code of Administrative Justice of Ukraine guarantees that foreigners, stateless persons, and foreign legal entities have the right to court protection on equal terms with Ukrainian citizens and legal entities. The Code imposes no limitations tied to a claimant’s foreign status.
Where to file. As a general rule, a foreign legal entity without a registered address in Ukraine files its claim at the location of the defendant authority, unless special venue provisions apply.
What the court reviews. The administrative court examines whether the authority acted on a proper legal basis, within its powers, through the required procedure, and consistently with reasonableness, impartiality, good faith, and proportionality. In a claim challenging an authority’s decision, action, or inaction, the defendant authority bears the burden of proving its lawfulness, subject to statutory exceptions.
Administrative court judgments that have entered into force are binding on all state authorities.
Filing deadline. Deadlines for filing administrative claims depend on the category of case and should be confirmed with legal counsel well before the relevant deadline expires.
7. Company response during a BES investigation
The Bureau of Economic Security investigates economic criminal offences assigned by law to its jurisdiction. The State Tax Service and customs authorities refer information about detected indications of criminal offences within BES jurisdiction. Information obtained during tax or customs control may be referred to the BES and, where the grounds prescribed by the Criminal Procedure Code exist, may lead to the commencement of a pre-trial investigation.
BES detectives conduct pre-trial investigations and procedural actions under the Criminal Procedure Code within BES jurisdiction. The procedure for searches, temporary access to items and documents, and seizure of property, as well as the company’s rights, is governed by the Criminal Procedure Code, not by the BES Law alone. Legal counsel should be engaged immediately at the first point of contact with BES detectives.
8. Document management as the first line of protection
Effective protection begins before any dispute arises. Companies that maintain systematic records have a material advantage: they can demonstrate that a violation occurred, establish when it occurred, and substantiate their claim with evidence.
A few straightforward practices make a significant difference. Copies of all correspondence with authorities should be kept with the date, reference number, authority, and official recorded. Inspectors’ authorisations and service IDs should be photographed or copied when presented, and the company should maintain a log of each interaction and document received. For general inspections, audio or video recording is advisable. If documents or property are seized in criminal proceedings, the company should require the procedural record and inventory and engage defence counsel immediately.
9. Inspections under martial law
The Cabinet of Ministers resolution on state supervision during martial law continues to restrict scheduled and unscheduled supervision measures, but its current text contains a broad range of exceptions. Permitted measures include inspections ordered by a court, requested by the business, conducted to verify compliance with earlier enforcement orders, and carried out in the cases and sectors expressly listed in the resolution or special legislation.
Tax and customs control are governed primarily by their respective codes and are not determined by this resolution alone. The existence of the general restriction therefore does not mean that a particular tax, customs, licensing, or sectoral inspection is prohibited.
Practical guidance. Before admitting inspectors or refusing access, verify the current rules for the specific authority, inspection type, and sector. During martial law, the scope of permitted control changes more frequently than the general inspection framework.
Frequently asked questions
Can a foreign company without a Ukrainian registered entity submit a BOC complaint?
Yes. A foreign legal entity may submit a BOC complaint if it is engaged in business activities in Ukraine; its official registration number (identification code) is stated only if one exists. The complaint must be filed no later than one year after the relevant event, must not be before a court or arbitral tribunal or concern a matter already decided, and—where applicable—must follow at least one available administrative appeal.
Is an administrative complaint mandatory before going to court?
Under the general Law on Administrative Procedure, an administrative complaint is an alternative to going directly to administrative court. Tax, customs, and other specialised disputes have their own deadlines and procedures, however. The applicable code or special law should be checked before choosing the route because an administrative appeal can affect timing and the subsequent court process.
What should we do if inspectors arrive without advance notice or without documents?
Under the state supervision law, the company has the right to refuse entry if inspectors do not present their authorisation certificate and service ID. Scheduled inspections require written notice at least 10 days in advance. The refusal should be documented in writing. The rules differ significantly for other inspection categories, particularly those conducted within criminal proceedings, so engaging legal counsel should be the immediate first step.
What happens if the authority ignores an administrative court judgment?
Administrative court judgments that have entered into force are binding on all state authorities and are enforced through statutory enforcement proceedings. In cases provided by the Code of Administrative Justice, the successful party may also use judicial-control mechanisms over execution, including seeking an execution report or challenging unlawful decisions, actions, or omissions occurring during enforcement.
Is the inspection moratorium still in effect in 2026?
Yes, the martial-law resolution restricting state supervision remains in force, but it contains numerous exceptions. Separate rules apply to tax, customs, and sector-specific control. Whether a particular inspection is permitted therefore depends on the authority, legal basis, inspection type, and the company’s sector.
How long does the BOC typically take to handle a complaint?
The BOC’s procedural materials provide for a standard preliminary review of up to 10 working days and a standard investigation period of three months. A complex investigation may be extended or suspended. Unlike a court, the BOC issues recommendations rather than a binding judgment.
How DLF can help
DLF attorneys-at-law supports foreign companies and their Ukrainian operations in relations with state authorities. The team reviews inspection mandates and authority documents, prepares objections and administrative appeals, assists with Business Ombudsman Council complaints, represents clients in administrative court, and coordinates the response to BES measures. DLF combines its litigation and dispute resolution and tax law practices when handling tax, customs, and regulatory disputes.
Igor Dronov, Counsel — DLF attorneys-at-law
Contacts: +380 44 384 24 54, info@dlf.ua
This material is for general information purposes. The application of the approaches described depends on the circumstances of each specific situation and requires a separate legal assessment.