To continue to qualify for public contracts and subsidies in Slovakia, the ultimate beneficial owners of a company (“UBO”) must be registered by the end of July 2017 in the Register of Public Sector Partners. This applies to companies acquiring assets, financial proceeds from the state or municipalities, public institutions or from EU funds as well as companies participating in public procurement. The same obligation applies to providers of health care which receive proceeds from health insurance companies and energy companies holding licenses in Slovakia.
In some of the above situations registration into the Register of Public Sector Partners is not required if the value of the transaction does not exceed EUR 100,000 (EUR 250,000 in the calendar year). Additionally, banks and non-profit organisations are excluded from the registration duty.
Registration must be made through an advocate, notary, auditor, bank or tax advisor (not by the company itself). It must identify the UBO and must declare if the UBO is a public official. The registration is not subject to a fee.
If a company does not fulfil its registration duty it will not be able to receive assets or financial proceeds, or enter into contracts with public entities. Existing contracts can also be terminated.