Russian President Vladimir Putin has signed a law giving small companies a three-year holiday from regular inspections, a measure lawmakers hope will spur the development of small business in the country, according to a document published Tuesday on the government's legal information website.
Small business is relatively underdeveloped in Russia, making up only 21 percent of the country's gross domestic product, President Vladimir Putin said in April. In developed economies, small business constitutes more than 50 percent of GDP, Putin said, according to a statement on the government's website.
High taxes, lack of state support, excess bureaucracy and poor access to loans are all among the systemic issues that have impeded growth in the sector.
Lawmakers hope that the new legislation will serve to improve the business climate in the country, according to the bill.
Under the new legislation, regional and federal authorities will not be allowed to conduct regular checks of small companies or individual entrepreneurs from Jan. 1 of next year through the end of 2018.
The law will not apply to companies that have received administrative punishments for serious legal violations or had a license revoked in the past three years, according to the document.
The ban on carrying out regular inspections also won't apply to state inspections regarding fire safety, environmental standards, radiation control, state secrets or nuclear energy.