Register of Public Sector Partners
Do you trade with the public sector or are you a contractor of such an entity? Do you draw grants or funds from the public sector? Do you purchase assets or rights (e.g. right to use arising from the title to rent) or claims from a town, village, state or an entity connected to public sources? All that in the amount exceeding EUR 100,000.00? If so, it is necessary to have your company entered in the Register of Public Sector Partners.
The purpose of the register is the identification of beneficial owners. It means those “standing behind” the companies trading with the public sector. It is not only the partner trading with the public sector (public sector partner) but also their statutory body and the person (lawyer) authorised to arrange an entry in the register who are held liable for such identification. As stipulated by law, all the public sector partners must be entered in the Register of Public Sector Partners.
Who is the public sector partner?
- Contractor and subcontractor participating in public procurement;
- Health care provider;
- Anyone receiving means from budgets or European funds, investment incentives or means from selected legal entities and their related persons;
- Anyone receiving property, property rights or rights from the “public sector” or from a health insurance company (e.g. buying real estate from a village);
- Anyone receiving a claim towards the “public sector”;
- Anyone receiving funds from a health insurance company;
- Anyone receiving funds from Agricultural Paying Agency;
- Health insurance company;
- Mining or geologist license holder;
- Holder of a power engineering company license;
- Creditor in insolvency proceedings with the claim exceeding EUR 1 mill. and intention to avoid the “related creditors” arrangement.
- Entity responsible for toll and vignette payment collection.
Penalties in the case of not meeting the obligation to enter data in the register or in the case of stating false information
- Withdrawal from a contract and the failure of the state to meet its obligations;
- Penalties imposed on Public Sector Partners in the amount of the gained economic benefit; if the above cannot be determined the registering body shall impose a penalty of EUR 10,000.00 to 1,000,000.00;
- Penalty in the amount of up to EUR 100,000.00 per each statutory body member; our law firm will guarantee the payment of such penalty;
- Imposed penalty = removal of the statutory body member from all the companies and prohibition to perform the given function for the period of 3 years;
- Criminal liability of public sector partners, statutory body members and authorised persons.
Obligation to enter beneficial owners in Companies Register
As of 1st November 2018, all the Slovak companies that do not issue any securities accepted for their trading at a stock exchange (meaning the absolute majority of the companies entered in Companies Register) will be obliged to enter the beneficial owner’s forename, surname, birth registration number (or date of birth), address of permanent or other form of residence and other data in the non-public part of Companies Register.
Who is the beneficial owner?
- Individual having a direct or indirect share in voting rights in a legal entity or in its registered capital of minimum 25% separately or when combined;
- Individual entitled to the economic benefit of minimum 25% from business activities or from any other activity of a natural person - entrepreneur or legal entity;
- Individual being a statutory, managing, supervisory or auditing body or a member of such body;
- Individual who founded or established an asset pool;
Unless the beneficial owner is entered in Companies Register in a timely manner, the company will be subject to a penalty of up to EUR 3,310.00.
Why to use the services of our firm when entering in the Register of Public Sector Partners or Companies Register?
- As part of authorised person’s obligation performance, we have entered national and foreign companies, hedge funds and organisations established by church in the Register of Public Sector Partners.
- We have had a lot of experience with the preparation of the documents required and with the identification of beneficial owners.
- We were one of the first entities in Slovakia that started to arrange entries in the Register of Public Sector Partners and perform the obligations of an authorised person.