Impact of the amendment to the Commercial Register Act on organizational units

Following a series of articles concerning the amendment to the Commercial Register Act effective from 1 October 2020, we bring you another part of this amendment, which concerns only organizational units. our previous artilces are availabe HERE and HERE

1. Change in the definition of an organizational unit

First of all, the amendment changed the basic definition of an organizational unit, which has hitherto read as follows: "Organizational unit of the company means a branch or other organizational unit of the company ...." in such a way that the term branch has been deleted from the definition and the organizational unit is defined only as an organizational unit of the company. This adjustment has contributed to a better clarity and comprehensibility of the very definition of the organizational unit.

2. Confirmation of data entered in the Commercial Register

Based on the amendment and in the interest of cleaning up inactive organizational units, the founders of organizational units of foreign or Slovak legal entities are obliged to submit a proposal to the Commercial Register by 30 September 2021, confirming all entered data on the organizational unit or propose changes to the data entered.

For this purpose, the Ministry of Justice of the Slovak Republic has created a special form, which is submitted electronically to the Commercial Register. The submission of the proposal itself within the statutory time limit is not subject to a fee obligation. In the event of non-fulfillment of the obligation, the registry court is obliged to delete the organizational unit from the Commercial Register ex officio.

The registration court shall delete the organizational unit in such a way that if the founder fails to fulfill his obligation within the statutory time limit, the competent court shall publish a notice of deletion of the organizational unit in the Commercial Journal and 6 months after the publication of this notice the court will delete this organization unit from the commercial register.

If you need help filing the application or have any other questions, the lawyers from the cooperating law firm VGD Legal s.r.o. are available to you.

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