Beneficial Owner Register Errors: Key Risks for Czech Public Tenders

15.5.2026 | ARROWS law firm

Discrepancies in the register of beneficial owners pose a serious risk for companies participating in tenders in the Czech Republic. Incorrect data may lead to exclusion, suspension of rights, inability to distribute profits, and fines. This article explains the consequences of such discrepancies and shows how to protect yourself even before submitting a bid.

The photograph shows an expert providing a consultation regarding discrepancies in the register of beneficial owners.

Article contents

How the register of beneficial owners works and why it is critical for public procurement
Major change in December 2025: the public part of the register made inaccessible
How beneficial ownership data is checked for the selected supplier – a practical procedure
What to do now: preventive measures before the next tender
Final summary

Discrepancies in the register of beneficial owners may jeopardise your participation in a public contract; although the contracting authority cannot automatically exclude a supplier solely because data is missing from the central register, if the data is incorrect or incomplete, or if you fail to provide it upon the contracting authority’s request, your company may be excluded.
As of December 2025, the public part of the register of beneficial owners has been made inaccessible, which has complicated the situation for contracting authorities; paradoxically, this may currently make it easier for you to access information if you can prove that you are a duly registered beneficial owner or that you are involved in a public procurement procedure.
A judgment of the Supreme Administrative Court from September 2025 prevents the automatic exclusion of a supplier solely due to missing data in the register of beneficial owners; however, contracting authorities must still actively ascertain this data. If, however, the data in the register is incorrect or incomplete, or if the supplier fails to provide correct information upon the contracting authority’s request, this may lead to exclusion from the tender on the basis of other qualification requirements.
Correct data in the register of beneficial owners is key not only for participating in tenders, but also for day-to-day operations: without it, the exercise of voting rights is suspended, you cannot distribute profits, and you face fines; ARROWS attorneys in Prague can help you remedy errors and carry out preventive checks.

How the register of beneficial owners works and why it is critical for public procurement

The register of beneficial owners (the “RBO” or the “register”) is a central register maintained by Czech courts, which collects data on natural persons who in fact own or control legal entities and trust structures. It was introduced as a direct consequence of European anti-money laundering directives (AML directives), and its purpose is to ensure transparency of ownership structures and prevent the misuse of companies for money laundering, terrorist financing, or tax evasion.

In the context of public procurement, the register plays an absolutely fundamental role. When a company wants to participate in a public tender and the contracting authority selects it, the contracting authority is obliged under the Public Procurement Act (ZZVZ) to identify data on its beneficial owner. This data is used to verify that the selected supplier is not unacceptable due to a conflict of interest, links to a competitor, or other problematic connections. If the contracting authority finds that the data in the register is incorrect, incomplete, or differs from reality, or if the supplier fails to provide correct beneficial ownership data upon the contracting authority’s request, this may lead to your exclusion from the procurement procedure.

It is important to understand that, when carrying out checks, the contracting authority relies on the data in the central register. It cannot simply call your office and ask. If the register contains incorrect or incomplete information, the contracting authority has a legal basis to request that you provide the correct data. If you do not provide it, or if it remains incorrect, this may lead to exclusion. In practice, this means that a company with a discrepancy in the register may lose a lucrative public contract even before it has the chance to prove itself through quality and price.

A beneficial owner is always a specific natural person – an individual who ultimately owns or controls the company. Czech law defines a beneficial owner as a natural person who holds more than a 25% share in profits or voting rights, or who exercises decisive influence in another manner, directly or indirectly through another person.

Major change in December 2025: the public part of the register made inaccessible

Until 16 December 2025, the public part of the register of beneficial owners was freely available online. Anyone could search online, without registration, for ownership data for virtually any company. The Ministry of Justice then, in response to decisions of the Court of Justice of the EU and Czech courts, made the public part of the register inaccessible.

The reason is simple: the Court of Justice of the EU held that public access to beneficial ownership data violates the right to respect for private life and the protection of personal data guaranteed by the Charter of Fundamental Rights of the European Union. Czech courts took the same view, including the Supreme Administrative Court, which in August 2025 upheld an action brought by Highinvest and confirmed that blanket public availability of data in the register of beneficial owners constitutes a disproportionate interference with fundamental rights. This decision strengthened the arguments for a legislative change that resulted in the register being made inaccessible.

As of 17 December 2025, the public no longer has automatic online access to the register. This means that the privacy protection of beneficial owners has increased, but it has also complicated matters for certain entities. Access is now available only to:

the registered entity (your company) to its own extract after logging in,
natural persons registered as beneficial owners, to their own data,
public authorities and certain other authorised entities specified by law (including contracting authorities, which can arrange remote access, and obliged entities fulfilling AML obligations).

For public procurement purposes, this means that contracting authorities still have access and can ascertain beneficial ownership data. However, their options have narrowed to access via the system or by request. In some cases this may slow the process down, but in itself it does not reduce the seriousness of the situation: if your entry in the register contains errors, the contracting authority will still find out.

Supreme Administrative Court judgment of September 2025: how the rules on exclusion from a tender have changed

In September 2025, the Supreme Administrative Court issued a landmark judgment that introduced a partially more lenient rule for suppliers. The Court held that if a contracting authority cannot ascertain beneficial owner data from the central register of beneficial owners, it cannot automatically exclude a supplier solely because the data is missing from the register.

The reason is a conflict with European Union law. The Court of Justice of the EU had previously ruled that the requirement to be entered in a register whose data is broadly publicly accessible conflicts with EU personal data protection law. As a result, contracting authorities cannot automatically enforce registration in the register under the threat of exclusion solely on the basis of a missing entry.

The practical consequence is as follows: if, as a supplier, you have your owner data correctly recorded in the register—exactly as required by Czech law—the situation is clear. However, if the data is not in the register and the contracting authority cannot obtain it, this means the contracting authority cannot interpret the Czech Public Procurement Act (ZZVZ) in a way that would exclude you solely because data on your beneficial owner is missing from the register.

This judgment does not mean you can avoid the obligation to have correct data in the register. It only means that exclusion is not automatic. The contracting authority may still request that you provide the owners’ data directly—in writing, with supporting documents. If you fail to comply, or if the data you provide is clearly incorrect or incomplete, you have a serious problem.

The conclusion is clear: the Supreme Administrative Court judgment makes things a bit easier for you, but it does not mean that errors in the register are harmless. They are not.

How owner data is checked for the selected supplier – a practical procedure

When a contracting authority selects your company as the winner (or one of the winners) in a tender, it has a statutory obligation to identify data on your beneficial owners. The procedure is as follows:

Step 1: Primary check via the central register. The contracting authority will first try to obtain the data from the central register of beneficial owners. This is its first and primary obligation. If it succeeds—if your data in the register is correct and complete—the matter is resolved and the contracting authority will record your data in the public procurement documentation.

Step 2: What happens if the data is not in the register or is incomplete? If the contracting authority cannot obtain the data from the register (because it is not recorded, is incomplete, or is not available at all), it is required by law to invite you and request from you:

identification details of all persons who are your beneficial owners,
documents demonstrating the relationship of these persons to your company (extract from the Commercial Register, list of shareholders, articles of association, decision on distribution of profit share, etc.).

Step 3: Your response to the request. You will receive a written request from the contracting authority with a specific deadline (usually a few days). If you do not respond, or if you try to conceal the data, or provide information that is evidently untrue, you may be excluded even after you have already been selected.

Step 4: Assessment. Decision. The contracting authority will assess whether the data you provided proves a correct and complete relationship between the owners and the company. If it finds inconsistencies—for example, that the data in the register does not match what you provided, or that the data itself is evidently confusing—it may decide that qualification is not met at this point and exclude you.

It is crucial to understand that the review process is objective. The contracting authority is not being “judged” for taking a stricter look. Its duty is to protect the public interest—ensuring that public money goes to a company with a transparent and verifiable ownership structure.

The most common errors in the register of beneficial owners that lead to problems in tenders

In practice, there are several typical mistakes companies make when registering in the register, which then cause problems in a tender:

Error 1: Relying on automatic transcription without your own verification. Many companies mistakenly rely on the data being automatically transferred from the Commercial Register. In simpler structures this partly works, but this mechanism often does not reveal more complex ownership links and does not take informal influence into account. When the company then participates in a tender, it finds that the data is incomplete or misleading.

Error 2: Recording members of the statutory body instead of the true material owner. The law allows for a so-called substitute beneficial owner—when the beneficial owner simply cannot be determined, all members of the statutory body are recorded. Many companies misuse this approach as a “more convenient option” and record management members without making reasonable efforts to identify the real beneficial owner. This is a serious mistake—if a court or contracting authority later discovers it, the entry is incorrect and it can have awkward consequences in the tender.

Error 3: Incomplete description of the ownership structure. If your company has a more complex structure (a holding company, a trust fund, several shareholders with different stakes) and you do not list all beneficial owners in the register, the entry is incomplete. This is particularly an issue for trust funds and legal arrangements without legal personality, where it is necessary to identify all relevant persons (founders, trustees, the person in whose interest the fund operates, etc.).

Error 4: Failure to assess indirect influence. Sometimes the owner is not a direct owner but exerts influence through another person or arrangement. If you do not record this indirect influence, the entry is again incomplete. A court or contracting authority will then perceive this as negligence and as raising doubts about credibility.

Error 5: Failure to update data after a change of owner. If the owner of the company changes (sale of a stake, termination of a partnership, etc.), you are obliged to report it to the register without undue delay. Many companies ignore this obligation because they think no one will check. In a tender, however, it will certainly be checked.

Each of these errors may lead to you being asked to clarify matters in the tender, or to direct exclusion. And when do you find out? Only after submitting your bid, when you have already invested time and money in preparation.

Possible issues	How ARROWS helps (office@arws.cz)
Incomplete or incorrect beneficial owner entry identified in a tender – The contracting authority finds that the data in the register does not match reality; it will ask you for an explanation or may exclude you.	ARROWS attorneys will review your current status in the register, verify the data, and prepare complete and correct supporting documents. We will ensure your data reflects reality before you participate in a tender.
Exclusion from a public contract due to missing beneficial ownership data – If the data is not available in the register and you do not provide it in time, you may be excluded and lose the opportunity to win the contract.	We will help you provide the correct information to the contracting authority without delay. We will represent you in communications with the authorities and the contracting authority; we will proactively handle clarification of the error or its correction.
Conflict of interest identified based on beneficial ownership data – If the register shows that you are connected to a competitor or a person with a conflict of interest, you may be excluded.	We will help you identify potential conflicts of interest in advance. We will represent you in proceedings assessing them; we will prepare supporting materials for your defence if needed.
Fine for non-compliance in the beneficial owners register – A public authority may impose a fine of up to CZK 500,000 for failing to register the data or registering it incorrectly.	We will defend you in misdemeanour proceedings. We will liaise with the authorities; in some cases, we can argue that the error is not on your side or that it is minor.
Ban on profit distributions and suspension of voting rights – If the court confirms a discrepancy in the register and it is not remedied within the statutory time limit, the legal entity may not distribute a share of profit and other own resources to the person who is the beneficial owner whose details are not duly registered. At the same time, the exercise of voting rights attached to the interest whose beneficial owner is not duly registered is suspended. This can paralyse the company.	We will urgently rectify the entry in the register. We will file an application with the court to remove the discrepancy note; we will restore your rights and the company’s normal operations.

Discrepancy proceedings in the register – what it is and how it can affect you in a tender

When it is found that the data in the beneficial owners register does not correspond to reality, so-called discrepancy proceedings may be initiated. These proceedings are conducted by the court and serve to ensure that correct data is entered into the register.

How do the proceedings start? Usually, an authority (a bank performing client due diligence, an administrative authority, or even the court itself) finds that the data in the register is incorrect. The court then calls on you, as the registered person (your company), to explain the discrepancy or remedy it. You are given a reasonable time limit set by the court, usually 15 to 60 days, depending on the complexity of the case.

What happens if you disagree? If you do not agree that there is a discrepancy, you can defend yourself and challenge the allegation. However, if the allegation of a discrepancy is not refuted and the court concludes that the data is incorrect, it will initiate discrepancy proceedings by resolution. If the court initiates the proceedings, a discrepancy note is entered in the register. This is publicly visible and signals that the beneficial ownership data is being challenged.

Practical impact on a tender: As soon as a discrepancy note is entered in the register, the contracting authority will see it. This is a warning sign for you. The contracting authority may say: “There is a note that the data is not verified. We do not want to risk engaging with a company that has a transparency issue.” And that may be a reason for exclusion or closer scrutiny.

Course of the proceedings: The court will take evidence (usually without a hearing, based only on written documents), assess the positions of both parties, and issue a final decision. If a decision is issued against you during the tender, you have a problem. If the matter drags on and the discrepancy is not remedied within the statutory time limit, sanctions under Section 42 of the Act on the Register of Beneficial Owners will apply. This means that the legal entity may not distribute a share of profit and other own resources to the person whose beneficial owner is not duly registered. In addition, the exercise of voting rights attached to such an interest is suspended. The company is thus effectively paralysed.

ARROWS lawyers can help you in such proceedings – we will defend you against incorrect allegations, gather evidence, communicate with the court, and seek to turn the evidence in your favour. The goal is for the court to decide in your favour and for the note to be removed.

What to do now: preventive measures before the next tender

If you plan to participate in a public procurement procedure or tender in the coming months or weeks, you should immediately check your status in the beneficial owners register. Here is a practical approach:

Step 1: Request an extract from the register. Your company (as the registered person) can log into the system via a data box and download a full extract of its records. Natural persons registered as beneficial owners have access to their own data. Verify what data is recorded about you. If you do not have access or need assistance, contact a lawyer.

Step 2: Verify the accuracy of the data. Compare what you see in the register with reality. Who is the real owner? Are all beneficial owners listed? Are there errors in names, dates, or ownership interests?

Step 3: If there are errors, correct them without delay. If the correct beneficial owner is not recorded in the register, or the entry is incomplete, you have an obligation to correct it. The time limit for correction is 15 days from the occurrence of the fact giving rise to the need to change the entry. File an application for registration or correction – you can do this yourself online (electronically signed forms) or have a lawyer assist you.

Step 4: Prepare complete documentation. Even if the register is correct, prepare a document package for the tender that will include:

a copy of the extract from the register of beneficial owners,
evidence of the beneficial owners’ relationship to the company,
a list of all relevant persons and their roles,
additional explanation if your structure includes anything complex.

If the contracting authority sends you a request, you will be prepared.

Step 5: Contact a lawyer if you have any doubts. ARROWS’ Prague-based attorneys can carry out an audit review of your situation, identify risks, and help you remedy them before you become part of a tender. This will save you much bigger trouble later.

Final summary

Non-compliance in the register of beneficial owners can genuinely cost you participation in a public contract or tender. Whether it is incorrect data, an incomplete entry, or a note of discrepancy, each of these situations represents a serious risk. A contracting authority that checks information about your beneficial owner sees non-compliance as a signal that it does not want you for a public project. And understandably so—it wants a partner with a transparent and verifiable ownership structure.

It is essential to understand that an error in the register is not merely an administrative matter. It has real consequences—fines of up to CZK 500,000, suspension of voting rights, inability to distribute profit shares and other own resources, exclusion from the tender, and loss of trust from banks and business partners. In the worst case, the error can paralyze you for months or years.

At the same time, the situation can be resolved. If you identify the error in time and proactively correct it, you can avoid the worst scenarios. If you are already in trouble (e.g., you have a note of discrepancy in the register), there are ways to defend your position and resolve the matter.

The attorneys at ARROWS, a Prague-based law firm, specialize in this area. We can audit your situation, identify risks, prepare and file applications for registration or correction, represent you in discrepancy proceedings, and of course represent you in communications with contracting authorities and public bodies. If you are preparing for a tender and want to be sure, contact office@arws.cz—we will be happy to review your situation and find a solution.

Do you want to protect yourself and avoid the risk of delays or disqualification? Contact the attorneys at ARROWS, a Prague-based law firm, at office@arws.cz. We will ensure that your data in the register is correct and that your participation in the tender is smooth.

FAQ

1. What exactly is meant by the term “beneficial owner”?A beneficial owner is a specific natural person (an individual) who ultimately owns or controls your company. It is not a legal entity or some abstract concept. Under Czech law, it is a person who has more than a 25% share in profits or voting rights, or who exercises decisive influence in another way, directly or indirectly through another person. If you have two persons each holding a 50% share, both are beneficial owners and both must be entered in the register.

2. How often do I have to update data in the register of beneficial owners?
Whenever the beneficial owner or material information about them changes (e.g., sale of an ownership interest, entry of a new partner, change in the control structure, etc.), you must report this change to the register without undue delay, no later than within 15 days from the occurrence of the decisive fact. If other data changes as well (e.g., address), it should also be updated. In practice, many companies ignore this obligation, but in a tender it will certainly come to light.

3. What is the difference between an error in the register and a discrepancy?
An error is generally a situation where the data in the register does not correspond to reality (e.g., an old owner’s name is listed). A discrepancy is a formally identified situation where a court or another competent authority finds a mismatch and initiates discrepancy proceedings. This is more serious—the proceedings are formal, a note is recorded, and if the discrepancy is not remedied, sanctions apply under Section 42 of the Act. An error can be corrected more easily; a discrepancy is dealt with in a more complex way.

4. If it is found in a tender that I am not in the register, do I have to give up immediately?
No. If the contracting authority asks you to provide information about the beneficial owner, you have an opportunity to clarify the situation and provide the correct documents. According to the case law of the Supreme Administrative Court, the contracting authority cannot exclude you solely due to the absence of an entry in the register. However, if you refuse to cooperate, or provide incorrect or incomplete information, then yes—you will be excluded for failure to meet qualification requirements. Cooperation is key.

5. How does a company defend itself if it has a complex ownership structure with multiple entities and international elements?
Among other reasons, complex structures are more demanding for that reason. If you have a holding company, a trust fund, or owners abroad, you must be very precise in how you record the data. ARROWS’ attorneys work with such structures regularly and we know how to document and present them correctly. If you have an international element, we have access to the ARROWS International network, which can work with foreign registers and documents.

6. What happens if I discover an error in the register on the very day I have to submit a tender bid?
It is unpleasant. If you have time, you can try to remedy it, but it is risky. Most often, the matter is then handled by explaining the situation in the bid and providing the correct information. It is not ideal, but it is better than hiding the error. If you have legal counsel (for example, from ARROWS), they can advise you in such a situation and help with communication with the contracting authority.

Disclaimer: The information contained in this article is of a general informational nature only and is intended for basic orientation in the matter under the legal framework as of 2026. Although we take maximum care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS, a Prague-based law firm, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client security we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS directly (office@arws.cz). We accept no liability for any damages arising from the independent use of information from this article without prior individual legal consultation.

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