On October 25, 2016, the National Council of the Slovak Republic approved the new Act on Register of Partners of Public Sector (the “Act”) (also referred to as the “act against shelf companies”). The new rules come after the recent unsatisfactory amendment to the Act on Public Procurement, the intended purpose of which was to prevent participation of shelf companies in public procurement procedures.

The new Act regulates the participation of shelf companies, or companies with an unclear ownership structure, in relations with the state more comprehensively. It is not restricted to the area of public procurement only, but covers all forms of use of public finances.

Under the new Act, a so-called register of partners of public sector will be established, in which all companies intending to apply for public funds must be registered. Companies will thus have to disclose their complete ownership structure up to the level of the ultimate beneficiary owner.