To establish an Ltd. one only needs less than EUR2000 equity AND ONE DAY!

.....and only HUF 5 000k (EUR 20.000.-) to establish a Company Limited by Shares (or Joint stock Company) in Hungary!

It’s known that the Ltd.’s minimum equity has been decreased from 3 000 000 HUF to 500 000 HUF (approx. EUR 2.000.-). in case of a Joint Stock Company the minimum equity has been reduced from 20 000 000 HUF to 5 000 000 HUF (approx. EUR 20.000,-) . An Ltd and a Joint Stock Company can also be established electronically, with standard contract form. Obviously, the registered capital can be any higher amount than the ones listed above...

Favourable speed and cost!

In the simplified company proceedings the state cost has been considerably decreased. In case of establishing – regardless of the form of the company – it is 15 000 HUF (approx. EUR 60,-) instead of the former 100 000 HUF (Ltd. and Joint Stock Company) and it was 50 000 HUF (Limited and Unlimited Partnership). Therefore, the total costs (including the fees) of establishment have been reduced to half!

The terms of company procedure (both establishing and amendment) have been modified advantageously for the clients. The former 30-day establishing deadline and 45-day amendment term have been reduced to 15 workdays. In case of electronic submission of the simplified format of the corporate document by an attorney the registration shall take place within 1 day!! . All company proceedings (simplified or normal) can only be done through electronic way!

We are already fully capable of carrying out any kind of electronic procedures.

NEW:
The companies can determine the date of the change of their data in their application for registration (e.g. the name of the company, the change in the Headquarters, the form of representation – which are published in the media by some companies and there were a lot of problems with the dates).

The Company’s Articles of Association can determine those cases in which the Shareholders (members) can decide without holding a quotaholders’ (members’) meeting.

It’s a known fact that the managing director can do their jobs in the form of employment relationship (again). (Sham employment contract’s examination is a case still. More under Solutions menu.)

The managing director has to make a statement on the fact that the payment to the shareholders (members) does not endanger the liquidity of the Company and the interests of the creditors. This statement has to be presented to the Registry Court in 30 days by the managing director. (This helps the creditors.)

Generally known that the already registered companies have to amend – until 1 July, 2008 – their Articles of Association according to the Act on Companies. Those companies whose Articles of Associations are already according to the Act CXLIV of 1997 on Companies (old version) have to make a statement to the Registry Court about it but their Articles of Association shall not be modified because of this matter.

The name of the company does not have to indicate the activity of the company so the short and long name can be the same.

With name reservation the requested name can be reserved for 60 days prior to establishment.

Besides the Headquarters of the company (which is the company’s registered office) the company can determine the place of central administration if it’s different from the Headquarters. (Just to increase the scope for action.) Other possibility that the companies have the right to perform primary activity in other countries of the European Union and because of this, the registered Headquarters should not be modified.

Attorney-at-law can prepare Signature Specimen to use in the company proceedings (WHY COULDN’T WE DO THIS FORMERLY???) if he prepares and countersigns the Articles of Association or its modified version. This Signature Specimen does not have general force.

The companies have the possibility to publish their announcements (capital reduction, take over, final settlement, …) and their Authorizations on their own website. In this case these announcements shall be sent to the known creditors of the company and the website shall be operated continuously – otherwise supervisory procedure can be installed by the court of registry.

The Company Register involves the e-mail address, website link of the company and the business year’s balance date – if it’s different from the calendar year. If the company is a parent company and has to prepare consolidated yearly balance-sheet or included daughter company, then this fact and the names, Headquarters, registration number and the registration authorities of the related companies are also kept on a record. These statements shall be made at the same time when the yearly balance is deposited and published.

The Act on Corporations gives a possibility to the companies to decide whether they open a bank account and get a certificate – before the establishing documents are handled to the Registry Court – or the MD opens the account in 8 days after the registration and deposits the formerly disposed cash contribution. In this case the MD has to make a statement (either countersigned by an attorney-at-law or by notary) or the cash contribution that is disposed.

Another modification is that the Official Company Bulletin is not only published in written form, but is on the internet too.

Send E-MAIL TO US should question arise from the above article.