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Establishing a business in Hungary is neither difficult, nor expensive, and it can take less, than a few days to get your company running, if you can cooperate with the attorney handling your establishment procedure. In this article we present you the basic data you need to provide and the most important things to know.
- Choose the name and the corporate form the business. Your name has to be unique and has to comply with some legal requirements, including being grammatically correct and precise, and it is advantageous to indicate also a reference to the business activity itself. Since there are many more requirements, we provide more explanation in private. Your corporate form can be a general partnership (GP.), limited partnership (LP.), limited company (Ltd.), or private-limited liability company (Llp.) which is nowadays the most popular. Regarding each corporate form, contact us for further explanation, since it is a key factor to your business.
- Indicate the registered seat, the members and their capital contribution, the executive director, and main area of business. It is important to know, that every member and executive director (you can name more executive directors) has to reside in Hungary OR have to indicate a delivery address in Hungary – for example the one of the attorney’s office, or of any representative residing in Hungary. You also have to indicate the natural persons’ tax authority identification numbers. Some corporate forms require minimum capital contribution: the Llp. form requires at least 3 million HUF capital, private Ltd. requires 5 million HUF, while the minimum base capital of the public Ltd. is 20 million HUF.
- Pay the necessary procedural duties and fees. These fees vary from zero through 50.000,-HUF to even 600.000,-HUF (European Ltd.). Ask your attorney for further explanation. Once these fees are paid, your registry process can begin.
- Sign the deed of foundation and other necessary documents. These documents have to be drafted and countersigned by your attorney of choice.
- As soon as the signature and countersigning is done, you can issue invoices and start your business. During the time your company is founded but not registered at the court of registry yet, the business operates as a pre-company. You are entitled to perform most of the actions as you when lawfully registered. The process is complete when te competent registry court issues the order of registration.
Remember, these are just some of the many things you have to be with attention to, there are many-many details to the foundation of a business.
To have corporate experts deal with your business, contact us and we make sure everything goes fast and smoothly according to the relevant laws, for an affordable price.
Next time we discuss what to do if you have an injury or a monetary claim against someone and he/she is not willing to perform.