Blog - in Slovak

Various entities—legal and natural persons, whether based in the Slovak Republic or abroad— have encountered or will encounter, in the course of conducting their business or other activities under Slovak law and in fulfilling their legal obligations, the requirement to register in the List of Economic Entities and the requirement to register in the Register of Public Sector Partners.

However, they are quite often required to register simultaneously in both the List of Economic Operators and the Register of Public Sector Partners, particularly in public procurement procedures, in the tender documents for a specific public procurement as an interested party or bidder.  

In connection with the above, it often happens that for both Slovak and foreign entities (lacking knowledge of the relevant legislation), these registers or registration requirements are considered interchangeable, or that by fulfilling the obligation of one registration, the entity considers the other registration to have been completed.

The purpose of this article is to briefly clarify the difference between these registers, their purpose, and the cases in which it is necessary to fulfill the registration obligations in these registers, with the aim of helping entities to easily and properly ensure the completion of the required registrations, both in the List of Economic Entities and in the Public Sector Partners Register in an administratively and financially efficient manner. Learn more about our prices and services for registration in the RPVS.

List of Economic Entities

The legal framework for the List of Economic Operators (hereinafter also referred to as “LEO”) is set forth in Act No. 343/2015 Coll. on Public Procurement and on Amendments to Certain Acts (hereinafter also referred to as the “Public Procurement Act”). Pursuant to this legal framework, the Public Procurement Office (hereinafter also referred to as “ÚVO”) maintains a list of economic operators who have demonstrated compliance with the personal eligibility requirements under the Public Procurement Act and who have applied for registration in the ZHS.

The ZHS is therefore a publicly accessible list on the ÚVO website containing basic information about the economic operator.

Pursuant to Section 32 of the Public Procurement Act, only those who meet the following eligibility criteria regarding personal status may participate in public procurement:

1. neither they, nor their statutory body, nor a member of the statutory body, nor a member of the supervisory body, nor a proxy has been lawfully convicted of a criminal offense of corruption, a criminal offense of harming the financial interests of the European Communities, the criminal offense of money laundering, the criminal offense of establishing, organizing, or supporting a criminal group, the criminal offense of establishing, organizing, or supporting a terrorist group, the crime of terrorism and certain forms of participation in terrorism, the crime of human trafficking, a crime whose elements are related to business activities, or the crime of manipulation in public procurement and public auctions,
2. has no recorded arrears in social insurance premiums, and the health insurance company has no record of overdue receivables against him under special regulations in the Slovak Republic and in the country of registered office, place of business, or habitual residence,
3. has no recorded tax arrears with the tax office or customs office under specific regulations in the Slovak Republic and in the country of its registered office, place of business, or habitual residence,
4. no bankruptcy has been declared on its assets, it is not undergoing restructuring, it is not in liquidation, nor have bankruptcy proceedings against it been suspended due to lack of assets or bankruptcy proceedings canceled due to lack of assets,
5. is authorized to supply goods, perform construction work, or provide services,
6. is not subject to a ban on participation in public procurement confirmed by a final decision in the Slovak Republic and in the country of its registered office, place of business, or habitual residence.

The bidder or interested party shall demonstrate compliance with these conditions for participation by providing several documents, which must be submitted for each public procurement:

• a certified extract from the criminal record not older than three months,
• a certified confirmation from the health insurance company and the Social Insurance Agency not older than three months,
• a certified confirmation from the locally competent tax office and the locally competent customs office not older than three months,
• a certified confirmation from the competent court not older than three months,
• supported by a document certifying the right to supply goods, perform construction work, or provide services corresponding to the subject matter of the contract, and supported by a sworn statement.

However, a bidder or interested party is not required to prove compliance with the personal status participation conditions if they can demonstrate compliance with the personal status participation conditions through registration in the ZHS. In other words, if a bidder is registered in the ZHS, it is not necessary to demonstrate each of the personal status participation conditions separately.

An entity is registered in the ZHS based on an application for registration, together with all documents required by the Public Procurement Act. If the application for registration does not meet all the required criteria or if not all attachments have been included, the Public Procurement Office (ÚVO) will request the economic operator to supplement them within a specified time limit. The Public Procurement Office (ÚVO) shall register the economic operator in the ZHS within 15 days of the date of receipt of the complete application for registration, including all attachments.

If there is a change in the data recorded in the ZHS, the economic operator is required to report this change within 30 days of the date of the change and to substantiate it with a current document proving the change.

Registration in the ZHS is effective against any contracting authority and contracting entity, and the data contained therein need not be verified in public procurement procedures.

Registration in the ZHS is valid for three years.

Under the Public Procurement Act, registration in the ZHS is required:

1. if the entity does not wish to prove compliance with the personal status participation condition in every public procurement (registration in the ZHS is voluntary)    
2. if the entity wishes to regularly participate in public procurement within the electronic contracting system (registration in the ZHS is mandatory)   

Registration in the ZHS involves a fee of €50 for submitting the registration application and additional fees of €3.00 and €2.50 for issuing other certificates. If you decide to authorize a third party to handle the registration, you must also take into account the fee for these services, the amount of which you will agree upon.

Register of Public Sector Partners

The legal framework for the Public Sector Partners Register (hereinafter also referred to as “PSPR”) is set forth in Act No. 315/2016 Coll. on the Public Sector Partners Register and on Amendments to Certain Acts (hereinafter also referred to as the “Act on the RPVS”).

Under this legislation, the RPVS is a public administration information system containing data pursuant to Section 4 of the RPVS Act, administered and operated by the Ministry of Justice of the Slovak Republic. The RPVS contains, among other things, data on public sector partners and their ultimate beneficiaries; thus, the purpose of the RPVS is also to increase the transparency of legal relationships entered into by the public sector by revealing the ownership and management structures of entities “doing business” with the state, including local governments.

The RPVS primarily registers public sector partners (i.e., if an entity becomes a public sector partner within the meaning of the RPVS Act) and persons who register with the RPVS voluntarily, even if they are not yet public sector partners. 

A public sector partner is a natural person or legal entity:

1. that receives funds from the state budget, the budget of a state special-purpose fund, the budget of a public-law institution, the budget of a municipality, the budget of a higher territorial unit, from European funds, with the exception of the European Agricultural Guarantee Fund, from a legal entity established by law, with the exception of a chamber established by law, from a public enterprise, from a health insurance company, or receives state aid,
2. which receives a payment whose subject matter is property, rights to property, or other property rights of the state, a public-law institution, a municipality, a higher territorial unit, a legal entity established by law (with the exception of a chamber established by law), a public enterprise, or a health insurance company,
3. which enters into a contract, framework agreement, or concession agreement pursuant to a special regulation,
4. which is a healthcare provider that has concluded a contract with a health insurance company for the provision of healthcare,
5. which is required to be registered in the register pursuant to a special regulation,
6. to which a claim has been assigned or which is otherwise entitled to receive payment of a claim against the state, a state fund, a public institution, a municipality, a higher territorial unit, or a legal entity established by law, with the exception of a chamber established by law, or
7. which, directly or through other persons, supplies goods or services to the persons referred to in points one through four or acquires property from them, property rights, or other property interests, and at the same time knows or ought to know, taking into account all circumstances, that the services provided or the property, property rights, or other property interests acquired are related to a contract,

When assessing whether an entity is a public sector partner within the meaning of the above, financial thresholds are also taken into account. This means that for a natural person or legal entity to be considered a public sector partner, it is not sufficient for them to meet the definitional criteria; but the financial threshold condition must also be met—for a one-time transaction, the financial threshold is 100,000 euros, and for a recurring transaction, the financial threshold is 250,000 euros.

An entity cannot register itself in the RPVS; it can only be registered through an authorized person whom it secures on its own—under the RPVS Act, an authorized person may only be a lawyer, notary, bank, branch of a foreign bank, auditor, or tax advisor with its registered office or place of business in the Slovak Republic. The public sector partner shall enter into a written agreement regarding the performance of the authorized person’s duties on behalf of the public sector partner, pursuant to which the authorized person performs activities for the public sector partner. 

The application for entry of data into the register is submitted on behalf of the public sector partner by the authorized person. If the application for entry does not meet the conditions under the RPVS Act, the registering authority will not make the entry. The registering authority shall notify the authorized person of this fact by means of a notice of refusal to make the entry. If the conditions for registration are met, the registering authority shall make the entry within five business days of receiving the application for entry.

If there is a change in the data entered in the register concerning the beneficial owner or a change in the identity of the beneficial owner, the public sector partner is required to immediately inform the authorized person of this and is required to notify the registering authority within 60 days of the date on which the change occurred.

Registration takes effect on the day following the date of entry.

Registration in the RPVS is valid for an indefinite period.

Under the Public Procurement Act, a contracting authority and a contracting entity may not enter into a contract, concession contract, or framework agreement with

1. a bidder who is required to register in the RPVS and is not registered in the RPVS,
2. a bidder whose subcontractor and subcontractor under a special contract are required to register in the RPVS and are not registered in the RPVS

Under the Public Procurement Act, the registration requirement therefore applies if a bidder acquires the status of a public sector partner (meets the definitional criteria and satisfies the financial thresholds in public procurement).

Registration in the RPVS does not involve any court fees. However, it is necessary to take into account the remuneration of the authorized person for the performance of their activities, the amount of which you will agree upon.  

Key differences in relation to public procurement

Practical advice

1. Check well in advance whether the public procurement tender documents require registration in the ZHS or the RPVS 
2. Consult regarding public procurement obligations with a person who is capable and authorized to provide you with expert information (e.g., a law firm) or an entity that specializes in public procurement 
3. verify the deadline by which registrations must be completed so that you can begin taking the necessary steps well in advance - ideally several weeks before the start of the registration process and the preparation of the necessary attachments to the registration applications
4. If registration in the RPVS is required, find an authorized person who will handle your RPVS registration in accordance with legal regulations and agree on the terms of the authorized person’s services
5. In the case of registration in the ZHS, decide whether it is more advantageous for you to complete the registration independently and individually secure the necessary confirmations from all relevant entities, or to authorize a professional of your choice to handle these administratively demanding tasks 
6. Be prepared to provide the necessary cooperation at every stage of the registration process
7. After registration in the ZHS as well as in the RPVS, remember that it is necessary to report any changes that require registration in the ZHS or the RPVS

The law firm Hronček & Partners, s. r. o. is ready to provide you with comprehensive legal advice and services regarding the obligation to register in the ZHS or the RPVS in relation to public procurement, as well as legal advice regarding the fulfillment of the obligations of registered entities following registration.