The Recognition Of Companies Specialized In Financial Leasing Conditions Have Changed

Companies that have already been acknowledged will have until 25 September 2013 to comply with the new requirements. The recognition obligation is due to the implementation of Article 22 of the Law of 4 March 2012 regarding the Central Corporate Credit Register. This law stipulates that companies, which enter real estate lease-agreements, are currently also subject to recognition. Due to this, the aforementioned M.D. was laid down in execution of the amended Royal Decree nr. 55 (hereinafter referred to as "R.D. nr. 55"). The new M.D. also provides for the review of the recognition granted to companies specialized in leasing of movable goods.

1. Leasing activities envisaged by R.D. nr. 55.

   Before taking a closer look at the altered recognition requirements, the essential characteristics of movable financial lease or "equipment leasing", as well as the essential characteristics of the immovable financial lease or "real estate leasing", as defined in the R.D. nr. 55, are briefly summarized.

   In Article 1 of the R.D. nr. 55, the equipment leasing is defined as follows:

   (i) It relates to goods, which the lessee uses exclusively for business purposes;

   (ii) The equipment is purchased by the lessor for the sole purpose of being leased to the lessee and in accordance with the latter's specifications;

   (iii) The term of the lease must correspond to the expected economic life of the equipment;

   (iv) The rental must be fixed in such way that the equipment to be leased is fully depreciated within the lease term laid...