In practice, this obligation typically applies to:
1. Individuals and legal entities that receive financial resources from public sources This includes entities receiving funding from the state budget, local governments, public institutions, or EU funds (provided certain thresholds are exceeded).
2. Individuals and legal entities that acquire assets or other property rights from public entities For example, acquiring real estate, land, or other assets owned by government bodies. Where the value exceeds thresholds defined by law, registration in the RPVS becomes mandatory.
3. Entities entering into contracts, framework agreements, or concession contracts under public procurement legislation, both direct suppliers in public tenders and, in certain circumstances, subcontractors whose performance is directly or indirectly linked to the public contract (and which meets certain value thresholds) may be required to register.
4. Healthcare providers that have a contract with a health insurance company If the total compensation for healthcare services surpasses specified limits, an obligation to register arises.
5. Entities to which a receivable against the public sector has been assigned If a company has acquired a receivable where the debtor is a government authority or public enterprise, it may need to register under the RPVS.
6. Entities supplying goods or services to parties listed in the points above, with knowledge that their supplies or services relate to a public sector contract Even if a supplier is not directly contracted by a public authority, registration may be required if its activities are effectively part of a public contract and exceed relevant thresholds.
When Does the Obligation to Register Arise?
· The financial thresholds in § 2 (2) and (3) of the Act define when registration is mandatory. As a rule, one-time public funding up to EUR 100,000 does not trigger registration, while recurring or long-term funding over EUR 250,000 does.
· There are, however, exceptions and special cases (e.g., open-ended contracts where the total value can accumulate over time). Careful analysis is essential to prevent any breach of the law and associated penalties.
Penalties for Non-Compliance
A company that fails to register despite being obliged to do so could face several consequences:
· Termination of contracts by the public sector.
· Exclusion from public tenders.
· Possible monetary fines for the company and its statutory representatives.
These outcomes can be extremely detrimental to anyone engaging in public procurement or other forms of collaboration with state entities. Compliance with registration requirements is therefore crucial.
How Can We Assist?
We have extensive experience in:
· Identifying Ultimate Beneficial Owners (UBOs) for both domestic and international entities.
· Preparing and submitting registration applications to the RPVS, including all formal prerequisites.
· Advising on whether and when registration is required, including threshold and special-case assessments.
· Taking precautionary steps to minimize sanctions and risks arising from public-sector contracts.
We offer comprehensive support to ensure you fulfill all obligations related to RPVS registration. If you have any questions or need an assessment of whether you fall under the registration requirements, don’t hesitate to contact us. We’ll help you handle all formalities and reduce potential legal risks.