The articles of incorporation specify the following:
The Articles of Association, or the Deed of Foundation, must be drafted and signed by a Hungarian attorney.
The Company Act determines the minimum basic information that such founding documents should contain, such as the company name, domicile, capital founders/owners, basic data on the executive officers etc. Limited or limited liability companies can be established using model Articles of Association annexed to the new Company Procedure Act.
The registration application must be filed with the Hungarian Court of Registration within 30 days from the conclusion of the Articles of Association.
Once the registration is submitted, the company may start its operations as a pre-company until the registration is made. The Court of Registration must decide on the registration within 15 days in the case of business entities submitting for registration using the model Articles of Association annexed to the new Company Procedure Act (and within 2 days in case of electronic registration), or otherwise within 30 days. These periods commence at the delivery of the application to the Court of Registration. If the Court fails to meet these deadlines, the company is considered to be automatically registered on the 9th day following the expiry of the deadline
A newly registered company must also register with the local municipality, State Taxation Office, Central Statistical Office and Social Security Authorities.
On submitting an application to incorporate, the following details should be provided:
Apart from submitting the above documents for registration, the company must register with the following bodies:
A Kft. is a company limited by quotas or business shares similar to a German GmbH. The English equivalent is a private limited liability company. A Kft. can be owned by a single person, however there are further regulations imposing an increased level of liability upon single owners of companies.
Private limited company. Liability is limited to the amount of capital paid up, with the minimum currently set at HUF 500,000 (€1,700). This is the most common form in Hungary and may be owned by a single individual, several individuals or a holding company.
The procedure of a company formation in Hungary is very quick and simple.
Once the necessary details are collected (details of directors, shareholders, company name, activity, and required services) we then prepare the statutory documents, Articles and Memorandum, Specimen Signature. Within a few days when the client can either visit to Hungary to sign the documents before a lawyer or the documents get sent to the client via email in order to have it notarised before the consular department of Hungarian embassy in his/her country.
After the company is incorporated the bank account can be opened. It can be done by the client or we can assist if personal presence is impossible. Share Capital HUF500,000 must be deposited into the account until the bank issues the certificate of payment.
A Kft. may have one or more quotaholders (members), who may include both foreign individuals and foreign legal entities. Membership of a Kft. is evidenced by entering the names of members into a list of members which the directors of the Kft. maintain. A quota in a Kft. is indivisible, must be denominated in Hungarian Forints, divisible by 10,000 and may not be less than HUF 100,000. Voting and dividend rights can be set out in the deed of association, subject to the proviso that at least one vote must be allocated per stake of HUF 100,000.