A tool has emerged in Ukraine’s regulatory reality that is capable of changing the very logic of interaction between entrepreneurs and the state. This refers to the Law of Ukraine “On Administrative Procedure” (hereinafter – the LAP) — a document that is already in force but is only beginning to truly operate in business practice. This was the focus of an explanatory webinar on this Law, which brought together lawyers and entrepreneurs.
The event was organized by the EU Project EU4PAR, the Union of Ukrainian Entrepreneurs, and the “Safe Ukraine 2030” Foundation. Among the speakers were the team of lawyers from Sayenko Kharenko: Oleksii Koltok, Zhanna Zaiets, and Dmytro Shahirmanov.
How the Law Works
“This is not a novelty — the law has been in force since the end of 2023. But businesses are not yet using its full potential,” emphasizes Oleksii Koltok.
In fact, the law applies to almost all interactions between business and the state: obtaining permits, licenses, registration of rights, inspections. And importantly — even where sectoral legislation has not yet been aligned, the principles of the LAP must already be applied.
The main innovation is that any administrative act — whether issuing a license or registering property rights — must comply with fundamental principles. If an authority violates the procedure or ignores the principle of reasonableness, such a decision may be declared invalid.
Principles That Have Ceased to Be “Theory”
Previously, principles of law were often perceived as a declaration. Now they are a direct tool of protection.
The law establishes basic provisions:
- Presumption of legality of business actions. It is now presumed that business actions are lawful until a state authority proves otherwise. Any doubts or conflicts in legislation must be interpreted in favor of the private person, not the budget.
- Binding nature of Supreme Court conclusions. Officials can no longer ignore court practice. If the Supreme Court has already clarified how to apply a norm, the administrative body is obliged to follow this position at the stage of a business application, without waiting for a new lawsuit.
- The right to be heard. This is perhaps the most “Western” norm. An authority has no right to make a decision unfavorable to you (for example, to refuse registration) without giving you the opportunity to present your position or provide additional explanations.
And most importantly — if these principles are violated, the decision of a state authority may be declared invalid.
Officiality: the state must help, not demand certificates about certificates
The principle of officiality removes the burden of “paper terror” from business. An administrative body is now obliged to independently collect evidence and request documents that are already in its possession or in other state registers.
Moreover, the law obliges authorities not only to accept documents but also to advise participants in the proceedings. The state must act as a service that helps to properly exercise a right, rather than looking for grounds for refusal.
It is important that it is now possible to appeal not only the final refusal document, but also individual procedural actions or inaction during the consideration of the case. The LAP obliges the authority to clearly indicate in its decision where and within what time limits it can be appealed. The absence of such an “instruction” automatically gives business advantages in court.
Zhanna Zaiets spoke about the administrative procedure, how it begins, and the specific features provided directly by the law.
Where Is Your Case Considered?
The first rule for business: apply to the correct authority. The LAP introduces clear territorial and subject-matter jurisdiction:
- Upon application of a person: You choose the authority within its competence, regardless of your location (extraterritoriality).
- Real estate: A strict rule applies — only at the location of the property.
- On the authority’s initiative: If an inspection is initiated against you, the case is considered at your location or at the location of the object.
Important: If two authorities “argue” over who should inspect you, the conflict is resolved through a higher authority or a court. Business should not be a hostage to bureaucratic disagreements.
Recusal Tool: How to Remove a Biased Official
For the first time, a full-fledged institution of recusal appears in the administrative field. If you know that an official has a conflict of interest, has previously participated in this case, or is biased — you have the right to demand their replacement.
Advice from a lawyer: Ignoring recusal requirements is a direct ground for declaring a future decision (administrative act) unlawful.
Participants and Timeframes
The LAP introduces a wide range of participants. Addressees: the applicant (you), the person against whom the case is initiated, the complainant. In addition to you (the addressee), interested parties may be involved — those whom the decision may negatively affect.
Mass proceedings (10+ persons): If a case concerns a community (for example, construction of a gas station or a plant), the authority may require the appointment of a common representative for a group of persons with identical interests, mandatory public notification, and the possibility of involving public organizations (environment, cultural heritage).
The law establishes clear timeframes for cases upon application of a person:
- Standard: up to 30 days.
- Complex cases: up to 45 days.
- Extension: a maximum of 15 days (one-time).
Prohibition of refusal to register an application. The authority is obliged to accept your application on the day it is received. Formal replies like “we did not accept it because a comma is missing” are now outside the law.
However, not all applications will be considered. After registration, the authority may refuse to consider it if: the application is repeated without new circumstances, the case is already under consideration, the application is anonymous or incorrect.
Suspension and Closure of the Case
The procedure becomes predictable here as well. Suspension: if it is necessary to wait for another decision (of a court or authority), or if there are objective circumstances (for example, military service of a participant). Closure: including due to reconciliation of the parties. And this is important: reconciliation is possible at any stage.
Administrative Act and Appeal
Dmytro Shahirmanov spoke about the administrative case: what constitutes a quality administrative act and its appeal.
An administrative act is not just an order or decision. It is a document that has the following parts:
- Reasoning part: here the authority must explain “why.” References to evidence, explanations of the parties, and legal norms. If there is no reasoning (and the application is not fully satisfied), this is an independent ground for cancellation of the act in court.
- Operative part: a clear decision + appeal instructions. The authority must indicate where and within what time limits you can file a complaint.
- Appeal instructions. If these are absent, this is already a ground for cancellation.
Important: an act enters into force not from the moment of adoption, but from the moment it is communicated to the business.
Administrative appeal: the term is 30 days, submitted to the same authority, considered within the system. This is a faster and cheaper mechanism.
Judicial appeal. Courts are already actively applying the LAP.
Procedural violations are a real ground for winning. But there is a nuance: if the decision is substantively correct, a procedural error alone may not work.
The new law is not just a text — business has received tools at the level of European democracies. Use the right to access case materials, involve experts, and appeal to principles — today this is the best way to protect your asset.