The corporate law in Hungary is governed by Act V of 2013 on the Civil Code which incorporates the fundamental regulations and mandatory rules for all economic entities and also governed by the Act V of 2006 on Public Company Information, Court Registration Proceedings and Dissolution Procedures – “Registration Act” – which provides a flexible and expedient legal regime. Read more!
The main types of companies in Poland are Partnerships (Registered Partnership, Professional Partnership, Limited Partnership, Limited Joint-Stock Partnership) and Capital companies (Limited Liability Company, Joint-Stock Company). There are also 2 other alternatives (Branch and Sole Proprietorship), but special conditions apply.
Find out all details about each of these forms of business in our 2018 Guide: “Company Formation in Poland (PDF)”, or read more below:
The main types of companies in Poland are Partnerships (Registered Partnership, Professional Partnership, Limited Partnership, Limited Joint-Stock Partnership) and Capital companies (Limited Liability Company, Joint-Stock Company). There are also 2 other alternatives (Branch and Sole Proprietorship), but special conditions apply.
Find out all details about each of these forms of business in our 2017 Guide: Company Formation in Poland!
Czech or foreign investors entering the Czech market may choose between several corporate forms. The fundamental law in this area is the Civil Code and Business Corporations Act.
The corporate law in Hungary is governed by Act V of 2013 on the Civil Code which incorporates the fundamental regulations and mandatory rules for all economic entities and also governed by the Act V of 2006 on Public Company Information, Court Registration Proceedings and Dissolution Procedures – “Registration Act” – which provides a flexible and expedient legal regime. Read more!
The main types of companies in Poland are Partnerships (Registered Partnership, Professional Partnership, Limited Partnership, Limited Joint-Stock Partnership) and Capital companies (Limited Liability Company, Joint-Stock Company). There are also 2 other alternatives (Branch and Sole Proprietorship), but special conditions apply.
Find out all details about each of these forms of business in our 2018 Guide: “Company Formation in Poland (PDF)”, or read more below:
The main types of companies in Poland are Partnerships (Registered Partnership, Professional Partnership, Limited Partnership, Limited Joint-Stock Partnership) and Capital companies (Limited Liability Company, Joint-Stock Company). There are also 2 other alternatives (Branch and Sole Proprietorship), but special conditions apply.
Find out all details about each of these forms of business in our 2017 Guide: Company Formation in Poland!
Czech or foreign investors entering the Czech market may choose between several corporate forms. The fundamental law in this area is the Civil Code and Business Corporations Act.
Czech or foreign investors entering the Czech market may choose between several corporate forms. The fundamental law in this area is the Civil Code and Business Corporations Act. Read more!
Abstract: If you are going to start a new business or already involved in a business organization, there are number of different ways to structure a new business organization. The most common types are sole proprietorships, Partnerships, and company form of organization. The new concept, new form of organization LLP introduced in India from 2008 called as – Limited Liability Partnership Act, 2008.
Czech or foreign investors entering the Czech market may choose between several corporate forms. The fundamental law in this area is the Civil Code and Business Corporations Act.
There are no limitations for foreign investors when it comes to setting up companies. A foreign natural or legal person may establish any form of company either together with other foreign or Czech persons, or alone as a sole shareholder. In this respect, foreign natural and legal persons enjoy the same rights and bear the same obligations as Czech persons and may not be discriminated against.
Slovak or foreign investors entering the Slovak market may choose between several corporate forms. The fundamental law in this area is the Slovak Commercial Code. The Commercial Code regulates the corporate forms and business (entrepreneurial) activities that are defined as systematic activities conducted independently by an entrepreneur (either an individual or legal entity), in their own name and under their own responsibility for the purpose of making a profit.
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In order to set up a company in Romania, you first need to choose the type of business form, to prepare the file and to submit the application at the Trade Register. Note that the most common forms of business used in Romania are the Limited Liability Company along with the Joint Stock Company and Branches.
Slovak or foreign investors entering the Slovak market may choose between several corporate forms. The fundamental law in this area is the Slovak Commercial Code. Read more in our 2019 guide for company formation!
When considering the registration of a new company or relocation of your company in Bangladesh, keep in mind that most companies in Bangladesh are registered as private limited companies (commonly known as limited private companies). Limited private companies in Bangladesh are separate legal entities and shareholders not responsible for corporate debt exceed the amount of social capital they have contributed. According to the Companies Act of 1994, anyone (foreign or local) over the age of 18 can register a company in Bangladesh.
Download our "2017 Transfer Pricing Overview for Hungary" for more information or simply contact our experts in Hungary if you need any additional support!
Czech or foreign investors entering the Czech market may choose between several corporate forms. The fundamental law in this area is the Civil Code and Business Corporations Act. Read more!
Abstract: If you are going to start a new business or already involved in a business organization, there are number of different ways to structure a new business organization. The most common types are sole proprietorships, Partnerships, and company form of organization. The new concept, new form of organization LLP introduced in India from 2008 called as – Limited Liability Partnership Act, 2008.
Czech or foreign investors entering the Czech market may choose between several corporate forms. The fundamental law in this area is the Civil Code and Business Corporations Act.
There are no limitations for foreign investors when it comes to setting up companies. A foreign natural or legal person may establish any form of company either together with other foreign or Czech persons, or alone as a sole shareholder. In this respect, foreign natural and legal persons enjoy the same rights and bear the same obligations as Czech persons and may not be discriminated against.
Slovak or foreign investors entering the Slovak market may choose between several corporate forms. The fundamental law in this area is the Slovak Commercial Code. The Commercial Code regulates the corporate forms and business (entrepreneurial) activities that are defined as systematic activities conducted independently by an entrepreneur (either an individual or legal entity), in their own name and under their own responsibility for the purpose of making a profit.
Partnership Firm Registration | Partnership Firm Registration Documents RequireddeAsra Foundation
In this PPT, you will learn what is partnership firm registration, benefits of set up, the process & documents required for the same. For more details, check out this partnership registeration checklist: https://www.deasra.in/msme-checklist/partnership-registration-checklist/?utm_source=referral&utm_medium=slideshare
Partnership Firm Registration | Documents Required For Partnership FirmdeAsra Foundation
Learn what is a partnership firm, steps to incorporate one and he documents required for the same. For more help on getting small business licenses, reach out to deAsra for the Licenses & Legal Compliances Services at https://www.deasra.in/services/licences-legal-compliance/?utm_source=referral&utm_medium=slideshare
Want to start doing business in the Netherlands? This is an excellent manual to inform you about the most important items. Feel free to contact me if you have any questions.
Welcome to the Netherlands, Eindhoven (Brainport region)!
Registration process of private limited company in BangladeshMd. Rakibul Hasib
This report discuss the "Registration process of private limited company in Bangladesh." It was made as assignment report of IUB. All the content are taken from web sights or the text book that are mentioned in the document.
In order to set up a company in Romania, you first need to choose the type of business form, to prepare the file and to submit the application at the Trade Register. Note that the most common forms of business used in Romania are the Limited Liability Company along with the Joint Stock Company and Branches.
Slovak or foreign investors entering the Slovak market may choose between several corporate forms. The fundamental law in this area is the Slovak Commercial Code. Read more in our 2019 guide for company formation!
When considering the registration of a new company or relocation of your company in Bangladesh, keep in mind that most companies in Bangladesh are registered as private limited companies (commonly known as limited private companies). Limited private companies in Bangladesh are separate legal entities and shareholders not responsible for corporate debt exceed the amount of social capital they have contributed. According to the Companies Act of 1994, anyone (foreign or local) over the age of 18 can register a company in Bangladesh.
Download our "2017 Transfer Pricing Overview for Hungary" for more information or simply contact our experts in Hungary if you need any additional support!
Labour Law and Employment in the Czech Republic Accace
Labour law in the Czech Republic regulates the legal relations arising in connection with the performance of dependent work between employees and their employers, labour relations of collective nature and other aspect related to employment.
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Download our Complete 2017 Tax Calendar for the Czech Republic and keep an eye on the main statutory filing obligations in order to avoid any penalties!
2017 Transfer Pricing Overview for the Czech RepublicAccace
Transfer pricing regulations deal with the determination of prices in transactions (e.g. sale of goods, provision of services or provision of loans) realized between economically or personally related companies. The aim is to ascertain that the arm's length principle is met.
Download the latest 2017 Transfer Pricing Overview for the Czech Republic for more details!
Our tax experts have released the Complete 2017 Tax Calendar for Slovakia. The tax calendar gives specific due dates for filing tax forms and paying taxes that affect individuals and businesses.
Download the Complete 2017 Tax Calendar for Slovakia and meet every tax deadline!
Our team prepared for you a tax calendar with the key financial dates and deadlines in 2017 for Romania.
Download our "2017 Tax Calendar for Romania" and keep an eye on the main statutory filing obligations in order to avoid any penalties!
The main types of companies in Poland are Partnerships (Registered Partnership, Professional Partnership, Limited Partnership, Limited Joint-Stock Partnership) and Capital companies (Limited Liability Company, Joint-Stock Company). There are also 2 other alternatives (Branch and Sole Proprietorship), but special conditions apply.
Company establishment by foreign enterprises in Hungary in 2016Accace
Domestic investments by foreign citizens are protected and ensure legal security by the Hungarian law. This includes equality with local citizens, so foreign companies treated equally by the matter of company formation and subjected to equal treatment by company share. In our recent newsletter we are going to discuss the details of requirements, taxation and expenses about local companies established by foreign businesses.
“Better Business in Romania” compiles important pieces of information regarding the legislative climate applicable to investments in various areas of interest, starting from Corporate Law (aspects concerning the setting-up, management, acquisition, merger, and dissolution of a company), Real Estate, Creditor and Debtor Disputes, Employment, Public Contracts, Competition, Energy, Capital Market, Financial Institutions, Intellectual Property, Pharmaceuticals, Environmental law, Product Liability and Consumer Contracts, Insolvency, as well as Criminal Law and Taxation.
For the first time, a dedicated chapter on Personal Data Protection was added to the table of contents.
“Better Business in Romania” is made to offer foreign investors looking for investment opportunities in Romania a preliminary account of the legal framework in Romania. The information and opinions herein should not be treated as a comprehensive study and should not be construed or used as substitute for specific legal advice.
Chapter FourPartnership, Corporation and Agency law TH.docxtiffanyd4
Chapter Four
Partnership, Corporation and Agency law
THE COMMERCIAL COMPANIES LAW No.18/2019
Course: Business Law
Course Code: BALW4115
Specialization: Common
Department of Business Studies
Outcome:
At the end of this chapter, the student should be able to:
1. Describe the formation and operation of partnerships and corporations including limited partnerships.
2
General Provisions:
3
The provisions of this Law shall apply to commercial companies whose principal places of business are located in the Sultanate or which carry out their principal activities therein.
A commercial company is a legal entity established under a contract by two or more persons each of whom undertakes to participate in an enterprise for profit, by contributing a share of the capital in the form of tangible or intangible property, services or labour, with a view to sharing any profit or loss resulting from the enterprise.
As an exception from the provisions of the preceding paragraph, the company may be comprised of one person in accordance with the provisions of this Law.
General Provisions:
4
Commercial companies must adopt one of the following forms:
1. General Partnership
2. Limited Partnership
3. Joint Venture
4. Joint Stock Company (public / closed).
5. Holding Company
6. Limited Liability Company
7. One-Person Company
General Provisions:
5
Any company which carries out a commercial business without adopting one of the forms provided for in Article (4) of this Law, shall be considered null and void.
All the persons who have carried out business or acted in the name of the company or to its account shall be severally and jointly liable for the obligations arising from the business or actions made by them.
6
The Concerned Body may issue models of Constitutive Documents.
The Constitutive Documents shall be:
Apart from the joint venture, It shall be available to the public for perusal, and they must be registered in accordance with the laws in force.
Shall not contain any condition for absolving the founders or some of them from any responsibility resulting from the establishment of the company.
Apart from the joint venture, the Constitutive Documents and any amendments thereto must be written in the Arabic Language, otherwise they will be null and void.
General Provisions:
7
The objective of the company must be lawful.
The persons who have carried out business or acted in the name of the company or to its account shall be jointly liable for the obligations arising from the business carried out or acts made by them.
Any company established in the Sultanate shall be of an Omani nationality and shall enjoy the privileges prescribed by this Law.
It must have the Sultanate as its principal place of business and it may have one or more branches in the Sultanate or abroad.
General Provisions:
8
Companies with foreign capital contributions may be established, provided that the principal place of each of them shall be in t.
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There are no limitations for foreign investors when it comes to setting up companies. A foreign natural or legal person may establish any form of company either together with other foreign or Slovak persons or alone as a sole shareholder. In this respect, foreign natural and legal persons enjoy the same rights and bear the same obligations as Slovak persons and may not be discriminated against.
This booklet is made to offer you support in managing the inevitable complications created in the aftermath of the economic crisis but to also give you solid arguments for a better business development in Romania.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
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2. 2 | Company Formation in Hungary
Contents
Legal forms of business, minimum capital, contribution 3
Limited Liability Company (Korlátolt Felelősségű Társaság | Kft.) 3
Company Limited by Shares (Részvénytársaság | Rt.) 4
Limited Partnership (Betéti Társaság | Bt.) 4
Unlimited Partnership (Közkereseti Társaság | Kkt.) 4
Representative Office, Branch Office 5
Minimum documentation 6
Registration process 8
Shareholders (company board) 9
Requirements for executive officers (grounds for exclusion) 9
Conflict of interest 10
Disqualification 10
Tax law restrictions 10
Incorporation time 11
Simplified electronic filing 11
Standard electronic filing 11
General overview of corporate taxes 12
Corporate income tax 12
Amortization 12
Losses carried forward 12
Tax credits 12
Fees and Penalties 13
Investment incentives 14
Other aspects 15
Other registrations of a newly registered company 15
Opening a bank account 15
ABOUT ACCACE 16
3. 3 | Company Formation in Hungary
Legal forms of business,
minimum capital, contribution
The Hungarian Civil Code determines four different corporate forms that may serve for investors as a
basis to carry out business activity in Hungary. In addition to those 4, there are two other forms with
which investors can establish Hungarian presence. All of these forms can exclusively be established
and operated by foreign owners and management:
Limited Liability Company (Kft.)
Company Limited by Shares which may be privately founded (Zrt.) or publicly
founded (Nyrt.)
Limited Partnership (Bt.)
Unlimited Partnership (Kkt.)
Branch Office, Representative Office.
Limited Liability Company (Korlátolt Felelősségű Társaság
| Kft.)
A Limited Liability Company is established with a predetermined amount of initial capital that is HUF
3,000,000 provided by its Founders.
The liability of its members is limited to the provision of the company's initial capital. As a general rule,
members are not otherwise responsible for the company's liabilities, meaning that the private property
of the members cannot be touched by the liabilities of the company, except few cases which are
specified by relevant legislation.
Members of a Limited Liability Company may not be recruited through public offerings. The members'
rights and their title to the company's assets are represented by quotas (business share) in the
company.
No securities may be issued in respect of the business quotas. A Limited Liability Company could
have only one member (a single-member Limited Liability Company).
4. 4 | Company Formation in Hungary
Company Limited by Shares (Részvénytársaság | Rt.)
This is the most strictly regulated corporate form, which shows similarity to the German AG or to the
English Plc.
There are two types of stock companies:
Private Limited Company (Zártkörűen működő részvénytársaság; Zrt.)
Public Limited Company (Nyilvánosan működő részvénytársaság; Nyrt.)
A stock company is particularly suitable to large business entities with several investors, but it is also
possible to establish such entity as a single-person company.
A Private Limited Company in Hungary shall be founded with an initial capital consisting of a
predetermined amount. The minimum of the share capital of a Private Limited Company may be
HUF 5,000,000, while in the case of a Public Limited Company it is HUF 20,000,000. The liability
of its members is limited to the provision of the nominal or issue value of the shares.
At foundation of a company limited by shares, it is compulsory to establish Private Limited Company,
later the company may transform into Public Limited Company.
Shares may be:
ordinary shares
employee shares
interest-bearing shares
redeemable shares
preferred shares
Limited Partnership (Betéti Társaság | Bt.)
In a Hungarian Limited Partnership the minimum number of members is two, of which at least one -
the general partner - bears unlimited liability and while at least one other partner - limited partner - is
not liable for the obligations of the partnership, unless the relevant legislation provides otherwise.
Only the general partners may manage the partnership and represent the partnership in its dealings
with third parties. The profit distribution is generally proportional to the capital contributed, but the
parties are free to agree otherwise. It is against the law, however, to exclude any partner from the
distribution of profits.
Unlimited Partnership (Közkereseti Társaság | Kkt.)
In an Unlimited Partnership (or general partnership), the liabilities of its members are joint and
unlimited for the partnership's obligations.
No minimum initial capital requirement is set forth by law. By law, every member is entitled to
represent the partnership unless its articles of association state otherwise.
5. 5 | Company Formation in Hungary
The partnership must have at least two members. Individuals may also become members of an
Unlimited Partnership, however minor persons and individuals already bearing a joint and several
liability in another company are excluded.
The active participation of the partners in conduct of the partnership’s business is legally required. No
minimum capital is required to found and operate an Unlimited Partnership.
Representative Office, Branch Office
There are two other forms foreign investors might choose in Hungary to establish their presence.
Through a Representative Office, foreign investors can perform normal liaison functions, including
assisting with contract negotiation, advertising and exhibiting products and other forms of marketing
on behalf of the parent company; but the office is not allowed to pursue core business activities. This
form can be useful if the foreign undertaking intends to familiarize itself with the local business
conditions before embarking on an investment.
The other form to establish a presence in Hungary can be done via a Branch Office, which is an
organizational unit of a foreign company, being authorized to carry out independently normal business
activities.
6. 6 | Company Formation in Hungary
Minimum documentation
Companies duly formed and registered under Hungarian law may undertake obligations
and acquire rights in their own name.
As a general rule, companies may freely pursue activities; however, a license of the competent
authority is required for certain activities. Thus, for example, banks can only be founded and
operated as a company limited by shares.
Companies can be founded by natural or legal entities, Hungarians and foreign nationals alike.
The founders of a company must first sign the company's constitutive document, after which an
attorney-at law (a member of the Hungarian bar) must countersign and file it to the competent Court
of Registration with the other documents necessary for the foundation of the company. The company
is established by the court's act of registration. A company's fundamental corporate data (articles of
incorporation) and its internal regulations are set forth in its constitutive document, i.e. (i) articles of
association, or (ii) deed of foundation, or (iii) statutes depending on the corporate form.
The articles of incorporation must specify the following:
company name;
registered seat;
a list of the company’s members, with their respective addresses, date of birth, personal tax
number (and their mothers’ maiden names);
the company’s business (main) activities (certain activities require special administrative
permits);
the amount of the equity capital, the method and date of its availability;
representation of the company, the method of signing in the name of the company;
names, addresses, places of birth and personal tax number of the company’s officers as well
as their mothers’ maiden names;
the duration of the company, if founded for a fixed period of time
all other items of information relevant to the given form of corporation as required by the
prevailing act of law.
Most documents at a company establishment will be prepared and countersigned by the attorney-at-
law according to the will of the founder(s).
7. 7 | Company Formation in Hungary
The list of the essential documents depends on the company form but followings shall be highlighted
at establishment by a foreign person, or entity:
If a foreign company establishes a Hungarian company, the not more than 3 months
old Register extract of the founder company and its attested translation to Hungarian
language is necessary for an establishment. It is important to obtain these in timely
manner because the attested translation is slow procedure, only provided by one official
translation office.
If a foreign person (who is not resident in Hungary) will be the member or executive
officer of the company, then Agent for service of process shall be mandated by the
person. The mandated person shall have a registered Hungarian address.
8. 8 | Company Formation in Hungary
Registration process
The registration of business associations is a must in Hungary.
The Company’s constitutive document must be drafted and countersigned by a Hungarian registered
attorney. Incorporation procedure must be initiated by request.
The registration request must be filed with the competent Hungarian Court of Registration within 30
days from the conclusion of the constitutive document.
Company registration proceeding is fully electronic.
If the applicable laws require any official license for the establishment of the company, it must
be attached to the request form and the request form must be submitted within 15 days as of
the receipt of the official license.
When the registration court receives the application for registry, a certificate is issued for the company
with the company's name, address, temporary tax and statistical number and the number of reference
of the registration. After receiving the above certificate the company may commence to operate in the
form of a pre-incorporated company. This means that the company may operate as an
incorporated company but special provisions regarding personal liability of the founder(s) apply. A
pre-company may pursue business activities, but is not allowed to conduct business activities
requiring an official license.
9. 9 | Company Formation in Hungary
Shareholders (company board)
Company’s supreme decision making entity in Hungary is the supreme body.
In case of a one-member company the only member practises the rights of the supreme body.
In case of Unlimited Partnership the supreme body is the Members’ Meeting, where all the members
have the same value, and only member may be managing director of the Unlimited Partnership.
In case of Limited Partnership the supreme body is the Members’ Meeting, and only the general
partner(s) – with unlimited liability – may be the managing director of the Limited Partnership.
In case of Limited Liability Company the supreme body is the Members’ Meeting and the members
entitled to dividend in the proportion of their quotas (business share). Not only members, anybody
may be managing director of a Limited Liability Company.
In case of a Company Limited by Shares the supreme body is the General Assembly and the
executive body is the Board of Directors.
Foreign and Hungarian persons also may be Member (Shareholder) and executive officer
(managing director) in a company, but there are some general restrictions towards these
people which must be satisfied independently from the nationality of a person.
Requirements for executive officers (grounds for
exclusion)
The executive officer must be of legal age (18 years) and must have full legal capacity in the
scope required for discharging his functions. The executive officer shall perform management
functions in person.
In the case if the executive officer is a legal person, that legal person shall designate a natural
person to discharge the functions of the executive officer in its name and on its behalf. The
rules pertaining to executive officers shall apply to the designated person as well.
Any person who has been sentenced to imprisonment by final verdict for the commission of a
crime may not be an executive officer until exonerated from the detrimental consequences of
having a criminal record.
A person may not be an executive officer if he has been prohibited from practicing that
profession. Any person who has been prohibited by final court order from practicing a
10. 10 | Company Formation in Hungary
profession may not serve as an executive officer of a legal person that is engaged in the
activity indicated in the verdict.
Any person who has been prohibited from holding an executive office may not serve as an
executive officer within the time limit specified in the prohibition order.
Conflict of interest
Executive officers may not acquire any share in the capital of a business association - except for the
shares of public limited companies - which is engaged in the pursuit of the same economic activity, as
its main activity, as the business association in which they hold an executive office.
In the event of accepting a new executive office, within fifteen days of accepting such office the
executive officer shall notify any other company in which he already serves as an executive officer or
a supervisory board member.
With the exception of everyday dealings, an executive officer and his close relatives may not conclude
any transactions falling within the scope of the main activities of the business association in his own
name and on his own behalf.
Disqualification
The person who has been disqualified by a Registry Court of Hungary, according to the binding
legislation, cannot be member or executive officer.
Tax law restrictions
Members, executives of those companies which:
had tax debts for a long period;
has been terminated (by forced termination) due to tax debt;
would not be eligible to be member or executive officer of an another company due to the above
stated reasons.
The examination of the above stated restrictions shall be done at the establishment of the
company.
11. 11 | Company Formation in Hungary
Incorporation time
The registration request must be filed with the competent Hungarian Court of Registration
within 30 days from the conclusion of the constitutive document.
Companies can be incorporated in two ways: simplified or standard electronic filing.
Simplified electronic filing
The Court of Registry shall make decision within 1 working day from the submission of the
application and the concerning documents. In present procedure the companies must use a
standardised template for the constitutive documents.
Only Limited Liability Company, Limited Partnership, Unlimited Partnership and Private Limited
Company can be established by the simplified procedure. Public Limited Company cannot be
incorporated by the simplified procedure.
Standard electronic filing
In course of standard electronic filing, the companies are not bounded by the standard templates for
constitutive documents; content of it may be freely determined by the founders according to the
relevant laws. The Court of Registry shall make decision within 15 working days from the
submission of the application and the concerning documents.
Branch Offices and Commercial Representation Offices should also be registered by the Court of
Registration and may start their activities only after the registration. The time of registration may take
up to 15 days.
12. 12 | Company Formation in Hungary
General overview of
corporate taxes
Corporate income tax
Businesses in Hungary are subject to corporate income tax. The corporate tax rate is 10% of the
positive tax base up to five hundred million forints and 19 % for the part above five hundred million
forints, in 2016. The corporate tax rate changes in 2017 to 9% of the positive tax base.
Amortization
When determining taxable income for the corporate income tax, the relevant legislation allows for
calculating with amortisation.
Accounting is done on a gross value basis: depreciation increases corporation´s pre-tax earnings,
while amortization under the tax law reduces corporation’s earnings before taxes.
In certain cases, the tax law allows for amortization or permits accelerated depreciation (e.g.
immaterial assets, leased equipment).
Losses carried forward
All losses can be carried forward without any time limit. Beginning with the fourth tax year from the
start of operations, corporations may, with a permit from the tax authority, carry forward their losses if
they produced losses for the previous two years or if revenues did not reach 50 percent of all
expenses in the given tax year.
The tax authority issues such a permit only if the loss was caused by unavoidable external
circumstances. Losses by credit institutions cannot be carried forward.
Tax credits
Tax credits reduce corporate income tax and can also reduce taxable corporate income.
13. 13 | Company Formation in Hungary
Fees and Penalties
The registration fees of the different corporate forms in Hungary are as follows:
In case of simplified electronic filing:
HUF 25,000 in case of Unlimited Partnership and Limited Partnership
HUF 50,000 in case of Limited Liability Company and Private Company Limited
In case of standard electronic filing:
HUF 50,000 in case of Unlimited Partnership and Limited Partnership and Representative
Office and Branch Office
HUF 100,000 in case of Limited Liability Company and Private Company Limited
Publication fee is HUF 5,000.
Failure to comply with deadlines stated by relevant legislation could result in a penalty amounting
from HUF 50,000 to HUF 900,000.
14. 14 | Company Formation in Hungary
Investment incentives
The Hungarian Investment and Promotion Agency supports high value-added investment
projects with a one-stop-shop service including a VIP treatment and comprehensive information about
available subsidies for investment projects.
The maximum available aid intensity decreases if the investment is a large investment (exceeding
EUR 50 million): 50% of the maximum aid intensity determined in the regional aid map is available for
investment between EUR 50 and EUR 100 million, with 34% of the maximum aid intensity for
investment over EUR 100 million.
The incentive package may consist of the following elements:
cash subsidy decided individually by the Hungarian Government (for investments, training,
job creation and R&D)
development tax allowance (reduction of corporate tax, social tax, or for encouraging R&D
activities)
low interest loans
special incentives of the free enterprise zones
Key investment sectors: Automotive; Electronics; Information and Communications Technology;
Shared Services Centres; Renewable Energy; Medical Technology; Life Science; Food Industry;
Logistics.
15. 15 | Company Formation in Hungary
Other aspects
Other registrations of a newly registered company
A newly registered company must also register with the local municipality, Hungarian Tax
Authority, Central Statistical Office and Social Security Authorities.
Simultaneously with the submission of the registration application, the court registers companies with
the Hungarian Tax Authority (for VAT and income tax purposes) and with the Statistical Office through
an online system.
Opening a bank account
According to the binding registration, in 8 days after the registration of the company by the Registry
Court a bank account shall be opened.
For opening a bank account the executive officers personal presence is mandatory.
Disclaimer
Please note that our materials have been prepared for general guidance on the matter and it does not
represent a customized professional advice. Furthermore, because the legislation is changing
continuously, some of the information may have been modified after the material has been released
and Accace does not take any responsibility and is not liable for any potential risks or damages caused
by taking actions based on the information provided herein.
16. 16 | Company Formation in Hungary
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E-mail: hungary@accace.com
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