SUSPENSION OF THE LICENSE ACTION FOR PROCEEDINGS OF ECONOMIC ACTIVITY

Authors

  • Людмила МИКИТЕНКО Kyiv National University of Trade and Economics

Keywords:

economic activity, licensing, license, subject of economic activity, cancellation of a license, suspension of a license, measures of administrative influence

Abstract

Background. Improvement of all stages and procedures of licensing, in particular, by their unification, was one of the reasons for the adoption of the Law of Ukraine «On Licensing Types of Economic Activities» dated March 2, 2015, № 222-VIII. However, the procedure for suspension of the license has not remained unified, since some normative acts, in contrast to the mentioned law, provide the right of the licensing authority to suspend the validity of the license, and not to cancel it.
Analysis of recent research and publications. Issues concerning the licensing of economic activities are at the center of attention of many scholars, which is due to objective factors, in particular the severity of problems that arise in the licensing of economic activity and the application of the right of the licensing authority to suspend the validity of the license. At the same time, the main body of scientific research is devoted mainly to separate legal problems of licensing of economic activity, however, with the adoption of the new wording of the Law of Ukraine «On Licensing Economic Activity», issues regarding the suspension of the license remain unexplored and not regulated by law.
The aim of the article is the research to develop and substantiate proposals for improving the legal regulation of the licensing of economic activities, namely the imposition of a sanction in the form of suspension of the license.
MaterialsandmethodsThe analysis of the norms of legislation on the licensing of economic activity was carried out using the formal logical method (analysis, synthesis, analogy, generalization, induction, deduction), which made it possible to detect inaccuracies, contradictions and gaps, the conflict rules that exist today in the Ukrainian legislation in the field of licensing. The method of sociological research is used to describe the ways of optimizing legislation, establishing legislative guarantees of the rights of licensees.
Results.On the basis of the analysis of current and prospective legislation of Ukraine, a comprehensive study of theoretical and practical aspects regarding the suspension of the license: the deprivation or restriction of the right to economic activity as an effective and operational measure of administrative coercion was conducted. The advantages of the decision to suspend the license from the cancellation of the license are explored.
Conclusion.The introduction of an effective means of administrative coercion for a licensee will make it impossible to carry out illegal business activities and will enable the economic entity to eliminate the violations that it has committed without termination of the licensed activity and without reissuing the license.
Therefore, it is expedient to provide in the Law of Ukraine «On Licensing Types of Economic Activities»the possibility for the licensing authority, in case of a gross violation of the licensee's license terms, to discontinue the license by adopting a decision to suspend the license, which will be subject to immediate enforcement. To resolve this issue at the legislative level, it is necessary to supplement Art. 1 of the Law of Ukraine «On Licensing Types of Economic Activities»dated 02.03.2015 № 222-VIII after paragraph one, a new paragraph, which provides an interpretation of the content of the words «gross violation of the licensee's license conditions»and to supplement the law of Art. 15-1 «Termination of the license»with the content of the grounds, procedure, terms, actions of the licensee in case of suspension of the license, as well as the conditions of legitimacy of the suspension of the license. 

Author Biography

Людмила МИКИТЕНКО , Kyiv National University of Trade and Economics

Background. Improvement of all stages and procedures of licensing, in particular, by their unification, was one of the reasons for the adoption of the Law of Ukraine «On Licensing Types of Economic Activities» dated March 2, 2015, № 222-VIII. However, the procedure for suspension of the license has not remained unified, since some normative acts, in contrast to the mentioned law, provide the right of the licensing authority to suspend the validity of the license, and not to cancel it.
Analysis of recent research and publications. Issues concerning the licensing of economic activities are at the center of attention of many scholars, which is due to objective factors, in particular the severity of problems that arise in the licensing of economic activity and the application of the right of the licensing authority to suspend the validity of the license. At the same time, the main body of scientific research is devoted mainly to separate legal problems of licensing of economic activity, however, with the adoption of the new wording of the Law of Ukraine «On Licensing Economic Activity», issues regarding the suspension of the license remain unexplored and not regulated by law.
The aim of the article is the research to develop and substantiate proposals for improving the legal regulation of the licensing of economic activities, namely the imposition of a sanction in the form of suspension of the license.
MaterialsandmethodsThe analysis of the norms of legislation on the licensing of economic activity was carried out using the formal logical method (analysis, synthesis, analogy, generalization, induction, deduction), which made it possible to detect inaccuracies, contradictions and gaps, the conflict rules that exist today in the Ukrainian legislation in the field of licensing. The method of sociological research is used to describe the ways of optimizing legislation, establishing legislative guarantees of the rights of licensees.
Results.On the basis of the analysis of current and prospective legislation of Ukraine, a comprehensive study of theoretical and practical aspects regarding the suspension of the license: the deprivation or restriction of the right to economic activity as an effective and operational measure of administrative coercion was conducted. The advantages of the decision to suspend the license from the cancellation of the license are explored.
Conclusion.The introduction of an effective means of administrative coercion for a licensee will make it impossible to carry out illegal business activities and will enable the economic entity to eliminate the violations that it has committed without termination of the licensed activity and without reissuing the license.
Therefore, it is expedient to provide in the Law of Ukraine «On Licensing Types of Economic Activities»the possibility for the licensing authority, in case of a gross violation of the licensee's license terms, to discontinue the license by adopting a decision to suspend the license, which will be subject to immediate enforcement. To resolve this issue at the legislative level, it is necessary to supplement Art. 1 of the Law of Ukraine «On Licensing Types of Economic Activities»dated 02.03.2015 № 222-VIII after paragraph one, a new paragraph, which provides an interpretation of the content of the words «gross violation of the licensee's license conditions»and to supplement the law of Art. 15-1 «Termination of the license»with the content of the grounds, procedure, terms, actions of the licensee in case of suspension of the license, as well as the conditions of legitimacy of the suspension of the license. 

References

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Proekt Zakonu pro vnesennja zmin do Zakonu Ukrai'ny «Pro licenzuvannja vydiv gospodars'koi' dijal'nosti» shhodo zupynennja dii' licenzii' vid 22.03.2017 № 6221. Baza danyh «Zakonodavstvo Ukrai'ny». URL : http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=61391.

Published

2018-04-06

How to Cite

[1]
МИКИТЕНКО , Л. 2018. SUSPENSION OF THE LICENSE ACTION FOR PROCEEDINGS OF ECONOMIC ACTIVITY . Foreign trade: economics, finance, law. 97, 2 (Apr. 2018), 82–90.