REGULATORY ENVIRONMENT OF BUSINESS ACTIVITIES IN UKRAINE

Abstract

The subject of this study is the tools used by the state that create the regulatory environment for business activities in Ukraine. The goal of the article is to analyse the regulatory environment of Ukrainian enterprises, to reveal the conditions in which they operate on the basis of the study of legal regulations and requirements as well as on international ratings based on social surveys of Ukrainian society. Objectives: to review the regulatory environment, to study the status of the permitting system, the control system (inspections), technical regulation, the tax system and legislative acts. General scientific methods used are: methods of empirical research (observation, comparison, visual-graphic methods), method of system analysis, induction, deduction, specification. The following results are obtained. Regulation can be defined as the policy of influence based on understanding the nature of the object to which the regulation is directed, and on the well-defined perspective of the image of this object, which is planned to be achieved with the help of certain regulators. The main such regulator of activity of business entities is the state. Considering Ukraine's place in the rating study of the International Finance Corporation of the World Bank "Doing Business – 2017", the main conditions of business practices of Ukrainian enterprises and the state's influence on business environment have been researched. Although Ukraine's place in the rating has risen one point (the 80th place) compared to the previous year, according to certain parameters our state significantly lags behind both leading and neighbouring countries. This includes, in particular, obtaining building permition, difficulties in closing down of business and global commerce. Ukraine even did not find itself in top hundred according to these parameters. However, in such areas as permitting system, inspection system, technical regulation there are significant changes aimed at simplifying basic procedures and reducing regulatory pressure. Conclusions. Despite these innovations, there still exists bureaucracy, frequent changes in legal regulations and requirements and their imperfections in general. As a result, corruption and shadow economy still affect Ukrainian enterprises. The reduction of overregulation of domestic enterprises activities should become one of the main measures for creating optimal conditions for business in Ukraine.