Ensuring Compliance: A Comprehensive Guide to Audits and Inspections for Businesses in Serbia
A company, as a legal entity engaged in profit-making activities, acquires its legal entity status through registration in accordance with the regulations governing the registration of business entities – Law on the Procedure of Registration with the Business Registers Agency (“Official Gazette of RS,” No. 99/2011 and 83/2014) and the accompanying Regulation on the Content of the Register of Business Entities and the documentation required for registration (“Official Gazette of RS,” No. 6/2012).
An entrepreneur is a legally capable natural person engaged in business activities for the purpose of generating income, and is registered as such in accordance with the regulations governing the registration of business entities. A company has a predominant activity, as stated in its founding act, and is registered in accordance with the regulations governing the registration of business entities. It can also engage in all other activities not prohibited by law, regardless of whether they are specified in the founding act or statute. Registration or the performance of certain activities may be subject to special legislation, requiring the issuance of prior approval, consent, or other acts by the competent authority.
A significant step towards facilitating the establishment and registration of companies, expediting business operations, and reducing administrative costs was taken in 2002 through amendments to the Companies Act (“Official Gazette of the Federal Republic of Yugoslavia,” No. 29/96, 33/96 – corrected, 29/97, 59/98, 74/99, 9/2001 – decision of the State Union of Serbia and Montenegro, and 36/2002 and “Official Gazette of RS,” No. 125/2004 – other law). The requirement for prior inspection approvals as a condition for commencing activities was excluded. It was then provided in Article 18 of the Companies Act that a company could carry out its activities in premises that meet the requirements for technical equipment, occupational safety and health, and environmental protection, as well as other prescribed conditions. The fulfillment of these conditions was determined by the competent authority during regular inspection, and if the company met the technical equipment, occupational safety and health, and environmental protection requirements, as well as other prescribed conditions, it could commence and carry out activities related to the production, trade, distribution, processing, and storage of hazardous and harmful materials to human health and the environment, provided that the competent authority issues a decision confirming the fulfillment of these conditions. This provision was also adopted by the previously applicable Company Act (“Official Gazette of RS,” No. 125/2004 and 36/2011 – other law) in Article 6.
The current Company Act (“Official Gazette of RS,” No. 36/2011, 99/2011, 83/2014 – other law, and 5/2015) remains in line with the previous provisions. Article 4, paragraph 2, of the Company Act states that the registration or performance of certain activities may be subject to special legislation requiring the issuance of prior approval, consent, or other acts by the competent authority (permits, decisions, opinions, etc.). For entrepreneurs, the provisions of Article 4 of this law on the company’s activities apply accordingly, and an entrepreneur can engage in all activities that are not prohibited by law and for which they meet the prescribed conditions, including traditional and artistic crafts and domestic handicrafts.
Under the general regime, a business entity must be registered in the Register of Business Entities maintained by the Business Registers Agency (BRA) in order to commence its activities. This process also involves obtaining a tax identification number (TIN) for official communication between the BRA and the competent organizational unit of the Tax Administration, where tax inspectors responsible for office control work. The Tax Administration will refuse to allocate a TIN if the conditions specified in Article 26 of the Law on Tax Procedure and Tax Administration (“Official Gazette of RS,” No. 80/2002, 84/2002 – corrected, 23/2003 – corrected, 70/2003, 55/2004, 61/2005, 85/2005 – other law, 62/2006 – other law, 63/2006 – corrected other laws, 61/2007, 20/2009, 72/2009 – other law, 53/2010, 101/2011, 2/2012 – corrected, 93/2012, 47/2013, 108/2013, 68/2014, and 105/2014) and sublegal acts regulating this matter are not met.
Regarding public service institutions, in accordance with the Law on Public Services (“Official Gazette of RS,” No. 42/91, 71/94, 79/2005 – other law, 81/2005 – corrected other laws, 83/2005 – corrected other laws, and 83/2014 – other law), an institution is registered in the court register (register maintained by the competent commercial court) when the competent administrative authority determines that the conditions for commencing operations and conducting activities prescribed by the law have been met. Upon registration in the court register, the institution acquires the status of a legal entity.
Considering that there is a large number of activities and many of them have an impact on the public interest, particularly on human health, safety, the right to a healthy environment, social and educational rights, etc., special laws deviate from the general regime and establish a specific regime for starting work and carrying out certain activities by economic entities and other legal entities.
By means of a special law, work and the performance of a specific activity can be conditioned by obtaining prior approval or by determining the fulfillment of prescribed conditions by the competent inspection authority (inspections). For a better understanding, it should be noted that through special laws and regulations based on them, the registration of an economic entity and other legal entities can be conditioned, as well as the commencement of work and the performance of a certain activity, by granting permits, approvals, or other acts of consent from the competent administrative authority that is not an inspection (although this authority may usually have an inspection within its structure).
Additionally, through special regulations, it may be determined that the previous step and an integral part of resolving this “non-inspection” authority in the process of granting this consent is an inspection supervision conducted to determine the fulfillment of conditions for commencing work and performing the activity by the applicant. The inspection prepares a record, which is an integral part of the documentation that serves as a basis for resolving the consent.
In terms of the special regime, the Draft Law on Inspection Supervision, as a systemic law currently in parliamentary procedure, provides for the basic types of inspection supervision – regular and extraordinary. The extraordinary inspection supervision is conducted, among other reasons, when the supervised entity requests such supervision. While elaborating on the extraordinary inspection supervision upon the request of the supervised entity, this draft law stipulates that the inspection can be determining, conducted when it is necessary to establish the fulfillment of prescribed conditions after which the supervised entity acquires the right to commence work or carry out activities, perform activities, or exercise certain rights, in accordance with special laws, or confirming, conducted when the supervised entity requests confirmation of the legality and safety of exercising certain rights or fulfilling certain obligations, or in its business.
The Draft Law also provides that if, during extraordinary determining or confirming inspection supervision, the inspector does not establish any illegalities, irregularities, or deficiencies, he/she will issue a decision on the fulfillment of prescribed conditions or confirmation of legality and safety of actions or operations.
Therefore, the existing laws and the emerging inspection legislation stipulate that the fulfillment of conditions for the operation or performance of an economic entity and other legal entities that have started or are already operating should be determined by the competent inspection in the process of regular inspection supervision (general regime of work and activities). However, the fulfillment of these conditions when, according to special law, prior approval from the inspection is necessary for commencing work and performing activities, is determined in the process of extraordinary inspection supervision upon the request of the entity.
In practice, in certain situations where the establishment of the fulfillment of prescribed conditions is required before commencing work and performing activities, the applicant is obliged to obtain a positive opinion from two or more inspections to be able to start work or perform activities. Sometimes, one inspection issues a decision with a positive opinion, stating that the conditions it controls are fulfilled, while another inspection finds irregularities, deficiencies, and faults, and orders their correction. In such situations, the applicant must correct the identified deficiencies, resulting in a negative opinion, and then request the inspection to confirm the fulfillment of the prescribed conditions again. However, in practice, some entities begin to operate and perform activities without submitting applications or waiting for a positive decision. In these cases, if the competent inspection establishes that the entity is operating or performing activities without the necessary approvals, the inspection, according to special law, has the authority to order the cessation of work or activities until the deficiencies are corrected, i.e., until the required approvals are obtained.
Often, the process of resolving applications for determining the fulfillment of conditions is slow, and the statutory deadline for resolution is exceeded, i.e., there is “administrative silence.” One of the reasons for this is the generally insufficient number of inspectors compared to the volume and complexity of the work, the wide range of areas under supervision, and the large number of entities in those areas. This delays the decision-making process, and the entity that has submitted the request, due to the non-resolution, finds itself in an unfavorable situation, with options to try to persuade the inspection to re-examine the submitted request and documentation through various means or to file a complaint due to the “administrative silence” or initiate administrative proceedings if the complaint is not allowed, and also when the second-instance organ remains “silent” beyond the legally prescribed deadline. The “administrative silence” is regulated by the Law on General Administrative Procedure (Official Gazette of the Federal Republic of Yugoslavia, No. 33/97 and 31/2001 and the Official Gazette of the Republic of Serbia, No. 30/2010 – hereinafter: ZoUP) and the Law on Administrative Disputes (Official Gazette of the Republic of Serbia, No. 111/2009 – hereinafter: ZUS).
According to Article 208, paragraph 1 of ZoUP, when the procedure is initiated following a request from the party, or ex officio if it is in the party’s interest, and there is no need to conduct a special examination procedure before making a decision, nor are there any other reasons why the decision cannot be made without delay (resolving a preliminary issue, etc.), the authority is obliged to make a decision and send it to the party as soon as possible, and no later than one month from the day of submitting a regular request or from the day of initiating the procedure ex officio if a shorter deadline is not prescribed by a special law. In other cases, when the procedure is initiated following a request from the party, or ex officio if it is in the party’s interest, the authority is obliged to make a decision and send it to the party no later than two months, if a shorter deadline is not prescribed by a special law. If the authority against whose decision an appeal is allowed does not make a decision and does not send it to the party within the prescribed deadline, the party has the right to appeal as if its request was rejected. If the appeal is not allowed, the party can directly initiate an administrative dispute.
Article 236 of ZoUP prescribes that if the party filed an appeal because the first-instance authority did not make a decision within the prescribed deadline (Article 208, paragraph 2), the second-instance authority will ask the first-instance authority to inform it of the reasons why the decision was not made within the deadline. If it finds that the decision was not made within the deadline for justified reasons or due to the party’s fault, it will determine a deadline for the first-instance authority to make the decision, which cannot be longer than one month. If the reasons for not making the decision within the deadline are not justified, the second-instance authority will ask the first-instance authority to submit the case file. If the second-instance authority can decide on the administrative matter based on the case file, it will make its decision. If not, it will conduct the procedure itself and resolve the administrative matter with its decision. Exceptionally, if the second-instance authority finds that the procedure can be carried out faster and more economically by the first-instance authority, it will order the first-instance authority to do so and to provide it with the collected data within a specified deadline, after which it will resolve the administrative matter itself. Such a decision is final.
ZUS regulates that administrative proceedings can be initiated when the competent authority has not issued an administrative act on the request or appeal of the party, under the conditions provided for by this law (administrative silence). Article 19 of ZUS prescribes the deadline for filing a lawsuit due to administrative silence. If the second-instance authority, within 60 days from the day of receiving the appeal or within the legally prescribed shorter deadline, has not made a decision on the party’s appeal against the first-instance decision and does not make it within seven days after the party’s subsequent request submitted to the second-instance authority, the party can file a lawsuit due to the non-issuance of the requested act after the expiration of that deadline. If the first-instance authority, upon the party’s request, has not issued an administrative decision within the deadline prescribed by the law governing general administrative procedure against which an appeal is not allowed, and does not make it within seven days after the party’s subsequent request, the party can file a lawsuit due to the non-issuance of the requested act after the expiration of that deadline. With the lawsuit filed due to administrative silence, a copy of the request or appeal, a copy of the request for the mentioned subsequent request, and evidence of submitting these submissions to the competent authority are attached. This is essential because the judge will dismiss the lawsuit by decision if it finds that all these pieces of evidence have not been attached to the lawsuit filed due to administrative silence. When the court in the dispute due to administrative silence finds that the lawsuit is well-founded, it will accept the lawsuit by its judgment and order the competent authority to issue a decision. If the court has the necessary facts and the nature of the matter allows it, it can resolve the administrative matter directly with its judgment.
The slow resolution of requests and appeals and administrative proceedings can create an unfavorable business environment. On the other hand, an entity that decides to start working and performing activities without obtaining the required approval from the inspection, even though it is often motivated or practically forced to do so due to a difficult economic situation, bears the risk of being sanctioned for such actions.
Considering that these procedures last for a long time and taking into account the generally insufficient number of inspectors compared to the volume and complexity of the work, the wide range of areas under supervision, and the large number of supervised entities, as well as other relevant circumstances, and in order to accelerate the overall process and make it more efficient and cost-effective, these situations can be regulated in several ways, separately or in combination, depending on specific circumstances, needs, and risks.
These ways could include:
- prescribing that the expiration of the statutory deadline for issuing a decision, including the additional request for issuing a decision, means that there are no irregularities in the operations and conduct of the entity that has submitted the request, i.e., that the prescribed conditions for starting work and performing activities are fulfilled (the principle of “silence means consent”). The wider application of this principle in administrative procedures has been announced for the future law on general administrative procedure, the preparation of which is underway. On the other hand, the Draft Law on Inspection Supervision provides that if the inspector does not issue a decision after the completion of inspection supervision specified in the inspection order, or after the expiration of the statutory deadline for issuing a decision – when the order is not issued in accordance with the law, the supervised entity can request the inspector to complete the procedure. If the inspector does not do so within eight days from the day of submitting the request, it is considered that the procedure is suspended, and regarding the matter of the order, no irregularities in the operations and conduct of the supervised entity have been found. This also applies to extraordinary inspection supervision upon the request of the entity to determine the fulfillment of the conditions for starting work and performing activities, and there is room to further clarify the “inspector’s silence” in these cases through a legal norm or official interpretations and opinions;
- re-evaluating all cases where the inspection is required to determine the fulfillment of conditions for starting work and performing activities and deregulating all cases where, from the aspect of public interest, it is not necessary;
- legally empowering private sector entities to perform these tasks, with the necessity for these entities to obtain a license to perform these tasks, as well as to be insured against professional errors (professional liability insurance), thereby covering the risks of unprofessional conduct. Entrusting the performance of these tasks to licensed entities from the private sector is a general trend in the regulatory resolution of such and similar issues. One of the latest examples is the resolution from the amendments and supplements to the Fire Protection Law (Official Gazette of the Republic of Serbia, No. 111/2009 and 20/2015), stipulated in Article 80 of this law, according to which supervision over the fulfillment of prescribed conditions and measures for fire protection during the construction of an object, instead of the fire inspector, is supervised by a licensed person from the private sector who meets the requirements for conducting expert supervision in accordance with the regulations on planning and construction, and the investor or his representative has determined that this person will perform these tasks during the construction work. Another example is the assignment, based on the minister’s decision responsible for veterinary affairs, of certain professional tasks of the veterinary inspection to a veterinary station that meets the prescribed conditions, in accordance with Article 148 in connection with Article 17 of the Veterinary Law (Official Gazette of the Republic of Serbia, No. 91/2005, 30/2010, and 93/2012). Some of the reasons for entrusting inspection tasks are, in addition to insufficient inspection capacity, potential conflict of interest, and the possibility of wrong incentives and improper work since the inspection, before starting work and performing activities, determines the fulfillment of conditions for work and activities and then controls the same conditions in the inspection supervision procedure. In inspection supervision, there may be a so-called solidarity within the profession if one inspector overlooks something in the process of determining the fulfillment of prescribed conditions, and another inspector later finds this omission, deficiency, or irregularity in the inspection supervision process, and out of these motives, ignores this omission, deficiency, or irregularity. Then the intention is for everything irregular to remain within the inspection profession, effectively regulating itself monopolistically, which, according to contemporary classification, represents a specific form of corruption. The Draft Law on Inspection Supervision, by the way, provides a systemic legal basis for entrusting the tasks of verifying the fulfillment of conditions for starting work and performing activities to individuals from the private sector, stipulating that a person who is not a civil servant can be entrusted with the performance of certain professional tasks of the inspection.
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Review of Activities for Which Commencement of Work Requires Compliance with Prescribed Conditions and Inspections to Determine Such Compliance
Article 18 of the Law on Occupational Safety and Health (“Official Gazette of the Republic of Serbia,” No. 101/2005) stipulates that an employer is obliged to inform the competent labor inspection at least eight days before the start of work, commencement of a separate unit’s work, and any changes in the technological process that affect working conditions. An employer involved in construction or reconstruction of a building or making a technological process change for more than seven days must prepare a prescribed site arrangement plan. This plan, along with the report on the start of work, is submitted to the competent labor inspection. Compliance with the prescribed conditions in the field of occupational safety and health, before commencing the employer’s activities, is determined by the Ministry responsible for labor at the employer’s request. The procedure for determining compliance is further regulated by the Regulation on the Procedure for Determining Compliance with the Prescribed Conditions in the Field of Occupational Safety and Health (“Official Gazette of the Republic of Serbia,” No. 60/2006). The procedure for determining compliance with the prescribed conditions in the field of occupational safety and health is carried out before the employer commences their activities. The employer submits a request for determining compliance, according to the law, to the Ministry responsible for labor – labor inspection, at least eight days before starting their activities. The employer must specify the activity to be conducted and the surface area of the working and ancillary premises where the activity will take place. Additionally, the request must include evidence such as:
- A schematic representation of work equipment (working and ancillary premises and the layout of the equipment used in the work process).
- Proof of applied prescribed measures in the field of occupational safety and health for the work equipment, including documentation for its use and maintenance in proper condition.
- Proof of payment for the costs of determining compliance with the prescribed conditions in the field of occupational safety and health. An inspector of labor determines compliance with the prescribed conditions in the field of occupational safety and health within five days from the date of receiving a duly submitted request. The procedure includes:
- Verification of the data from the request.
- Inspection of work equipment and the work environment. The verification of data from the request establishes the correspondence between the actual situation and the provided information in the request, while the inspection of work equipment confirms compliance with the prescribed conditions in the field of occupational safety and health for the facility used as the working and ancillary premises, including open spaces, along with all related installations and work equipment used in the work process. The inspection of the work environment verifies compliance with the prescribed conditions in the field of occupational safety and health for all workplaces of the employer, as well as for working conditions (heating, ventilation, lighting, etc.). After the inspection, the labor inspector prepares a report determining whether the prescribed conditions in the field of occupational safety and health for the requested activity are met. Within three days from the date of the report, the labor inspector issues a decision on compliance with the prescribed conditions in the field of occupational safety and health. If the labor inspector finds that the prescribed conditions are not met during the inspection, the inspector instructs the employer to rectify the identified irregularities within a specified deadline.
The Law on Trade (“Official Gazette of the Republic of Serbia,” No. 53/2010 and 10/2013) prescribes conditions for conducting trade. Trade can be conducted by persons with the status of a trader in accordance with this law. To engage in trade, the conditions prescribed by this law and specific regulations (hygiene-sanitary conditions, occupational safety and health conditions, environmental protection conditions, prescribed technical requirements, etc.) must be met. Such persons are required to have evidence of their status as traders and compliance with the conditions stated in Article 2 of this Law at the point of sale or during trading outside the point of sale. For trade to be conducted, minimum technical conditions must be met concerning:
- Premises, equipment, and devices.
- Exterior characteristics of the premises.
- Method of selling goods/services.
- Method, equipment, and devices for storing goods.
- Type of goods/services based on their properties or characteristics. The Law on Trade empowers the Minister responsible for trade to prescribe in more detail the minimum technical conditions for conducting trade. As this regulation has not yet been adopted, in accordance with Article 80, paragraph 2, of the Law on Trade, until sublegal acts based on the authorization from this law are adopted, the sublegal acts adopted by the day this law enters into force (with the exception of provisions contrary to this law) shall apply. This includes the Regulation on Minimum Technical Conditions for Trading Goods and Providing Services in Trade (“Official Gazette of the Republic of Serbia,” No. 47/96, 22/97, 6/99, 99/2005, 100/2007, 98/2009, and 62/2011 – other regulation), adopted based on Article 6, paragraph 3, of the previous Law on the Conditions for Trading Goods, Providing Services in Trade, and Inspection Supervision (“Official Gazette of the Republic of Serbia,” No. 39/96, 20/97, 46/98, 34/2001 – other law, 80/2002 – other law, and 101/2005 – other law). This regulation prescribes minimum technical conditions regarding premises, equipment, and devices for conducting trade and providing services in trade, as well as the types of goods and conditions for selling goods outside business premises, i.e., at stalls and similar facilities. Article 36a of this regulation determines that compliance with the conditions stated in this regulation is determined before commencing trade and providing services in trade, as well as in the case of changes to these conditions.
In accordance with the Law on Road Transport (“Official Gazette of the Republic of Serbia,” No. 46/95, 66/2001, 61/2005, 91/2005, 62/2006, and 31/2011), the Republic inspector for road traffic issues a decision on compliance with the conditions specified in Art. 3, 5, 6, and 9 of this law. The purpose is to ensure that road transport is conducted using vehicles that meet the conditions established by this law and other traffic safety regulations and standards for specific types of vehicles. In certain cities and municipalities, the traffic inspection, in accordance with the Law on Road Transport and the decision of the local self-government unit regarding the conditions and methods of conducting taxi transport in the territory of that local self-government unit (municipality, city), resolves requests to determine compliance with the conditions for commencing and conducting taxi transport activities. Sanitary Inspection, Health Inspection, and Inspection for Medicines and Medical Devices The Sanitary Inspection, Health Inspection, and Inspection for Medicines and Medical Devices within the Ministry of Health are competent for determining compliance with the conditions for conducting activities in their respective areas of supervision. For registering a dietary product in the database maintained by the Ministry of Health, it is necessary to attach a copy of the decision or report by the sanitary inspector confirming compliance with general and specific sanitary and hygienic conditions for the production of dietary products (for manufacturers in the Republic of Serbia). Similarly, requests for the import of food and general-use items are submitted to the competent sanitary inspector for the border area. The Sanitary Inspection determines compliance with the prescribed conditions for the commencement of work and the performance of disinfection, pest control, and deratization by legal entities and entrepreneurs, in accordance with the Law on the Protection of the Population from Infectious Diseases (“Official Gazette of the Republic of Serbia,” No. 125/2004). The Health Inspection determines compliance with the prescribed conditions for:
- Commencement of work and performance of healthcare activities in healthcare institutions (health centers, pharmacies, hospitals, institutes, public health institutes, clinics, healthcare centers, clinical centers).
- Commencement of work and performance of healthcare activities in the organizational unit of a healthcare institution.
- Commencement of work and performance of certain healthcare activities in private practice (doctor’s or dentist’s office, polyclinic, laboratory, pharmacy, healthcare nursing office, rehabilitation office, dental laboratory).
- Commencement of work and performance of certain healthcare activities in private practice due to relocation or change of business address.
- Commencement of work and performance of healthcare activities in organizational units of healthcare faculties.
- Commencement of work and performance of certain healthcare activities in social care institutions, correctional institutions, and other legal entities authorized by special law to perform specific healthcare activities.
- Commencement of work and performance of preventive healthcare activities in occupational medicine offices for the needs of employees of a specific employer.
- Performance of abortion in gynecological-obstetric offices.
- Conducting first aid training and organizing and conducting exams (applications can be submitted by healthcare institutions and the Red Cross organization). The Inspection for Medicines and Medical Devices, in accordance with the Law on Medicines and Medical Devices (“Official Gazette of the Republic of Serbia,” No. 30/2010 and 107/2012) and accompanying bylaws (“Official Gazette of the Republic of Serbia,” No. 10/2012), is responsible for granting permits for:
- Manufacturing of medicines.
- Manufacturing of medical devices – the entire manufacturing process or part of it.
- Wholesale of medicines and medical devices.
- Manufacturing of galenic medicines.
- Retail sale of medical devices in specialized stores.
Article 30, paragraph 3, of the Law on the Foundations of the Education System and Upbringing (“Official Gazette of the Republic of Serbia,” No. 72/2009, 52/2011, and 55/2013 – hereinafter: FOES) stipulates that an educational institution may begin operations and perform educational and upbringing activities if it meets the conditions for establishment and has:
- Prescribed premises, equipment, and teaching aids.
- Teachers, educators, and professional associates in permanent employment.
- Ensured hygienic and technical conditions in accordance with the laws and regulations governing this area. An educational institution can start operating when it is determined to meet the conditions for establishment and operation and receives a verification decision. Article 33 of FOES regulates the extended activity of educational institutions. It is stipulated that an educational institution that has a verification decision can perform other activities related to education and upbringing (extended activity) provided that it does not interfere with the performance of educational and upbringing activities. The educational inspection examines the compliance of the educational institution with the prescribed premises, equipment, and teaching aids, as well as the presence of teachers, educators, and professional associates in permanent employment, and the compliance with conditions for conducting extended activities in accordance with Article 30, paragraph 3, points 1) and 2), and Article 33 of FOES.
Environmental Protection Inspection and Agricultural Inspection
The Environmental Protection Inspection and Agricultural Inspection resolve requests to determine compliance with the conditions related to environmental protection in business premises or facilities for conducting activities and conditions for conducting activities in agriculture and the food industry, for registration in the public register, commencement of work, and conducting activities, when required by laws and other regulations governing the areas of environmental protection, agriculture, and food.
Social Care Inspection
In accordance with the Law on Social Protection (“Official Gazette of the Republic of Serbia,” No. 24/2011) and the Regulation on the Licensing of Social Care Organizations (“Official Gazette of the Republic of Serbia,” No. 42/2013), social care organizations are required to obtain a license for providing social care services and, in order to obtain it, they submit a request for issuing this license. After receiving the request and reviewing the attached documentation, social care inspectors conduct office and field inspections to verify compliance with the conditions for providing social care services. The report of the social care inspector is an integral part of the documentation necessary for issuing the decision on compliance or granting the license, i.e., in the process of licensing a social care organization.