Business with Public Sector: Obligatory Registration
The Slovak Act on Public Procurement no. 343/2015 Coll. as amended was recently changed by the Act no. 315/2016 ("Act on Register for Partners of the Public Sector", the "Act"). Accordingly, a new register for partners of the public sector ("Register") will be established by the Slovak Ministry of Justice until 1 February 2017.
The new Register shall replace the current register of ultimate beneficial owners managed by the Office for Public Procurement ("ÚVO").
New register for partners of the public sector
The new Act aims to increase the transparency level in the use of public funds.
Pursuant to the Act, “partners of the public sector” shall be registered in the new Register. The registration entails the disclosure of the ultimate beneficial owners (“UBO”) of the partner of the public sector.
Application to be filed by the “authorized person” only
Partners of the public sector may only file an application for an entry in the new Register via an “authorized person”. The new Act defines authorized persons especially as attorneys at law, notaries, tax advisors or banks with a seat in the Slovak Republic.
The authorized person shall prove the UBO with regard to the first registration as well as any consequent changes (e.g. conclusion of a new contract, subsequent changes of an existing contract) and always regularly as of 31 December of each year.
Partners of the public sector should pay great attention to the new Register since severe sanctions may apply for the partner of the public sector, for the management board as well as the authorized person, e.g.:
- Seizure of the economic profit made with the public sector;
- Penalty between EUR 10.000 and EUR 1 000 000;
- Denial of EU funds;
- Right of the public contracting authority to withdraw from the (concession) contract, resp. framework agreement.
Please feel free to contact us. We will gladly support you in filing your application for an
entry in the register of final beneficiaries with ÚVO.