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5 Aspects Making Company Establishment Easy

5 Aspects Making Company Establishment Easy

Hungary
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Do you need a company to be established in Hungary? You will find below some hints and tips that will make your life easier.

Can be used promptly

Although a company is considered as formed once it is entered into the Companies Registry, it can already pursue business activity from the date of filing. As soon as it gets its tax registration number (a couple of days later), the company can even issue invoices, notwithstanding its registration. So putting a company into operation is indeed fast and effective.

Standard forms are available

If the members of the company use the standard-form articles set forth by law, registration procedure must be completed in one business day. Such forms are rather simple and are easy to use, if the company’s members have no special needs for their shareholders’ arrangements. Not only they make registration super-fast but also reduce legal work and, as a result, costs.

One-stop shop system

Company registration and tax registration runs parallel. This means that there is no need to submit a separate tax registration form. VAT number, statistical number, even EU-VAT number can be requested when submitting the application for registration to the Court of Registration.

Registration duties and fees can be avoided

The establishment of a „Kft.” (i.e. a limited liability company), and other simple company forms are free of stamp duties and publication fees. This is so, irrespective of whether the company is formed by way of standard documentation or in a normal procedure, it has one or more members.

Payment of initial capital may be delayed

Although the limited liability company forms provide for a minimum registered capital (HUF 3 Million in case of a Kft. and HUF 5 Million in case of a Zrt.), the contribution of such payment can be delayed. No final decline for the contribution of the capital is specified. The company is, however, limited in its capacity to pay dividends as long as the capital is not fully contributed

By Agnes Bejo, Senior AttorneyJalsovszky

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

Firm's website.

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