Global businesses belongs to our everyday life. We enjoy the advantages of our modern world, however, we must never forget its dangers. In this article we draw your attention to those basic points we suggest to check before doing business with a Hungarian company, to avoid losing money. Some of them may seem evident, however, our advices are based on real cases.
Doing business also means a lot of paper work. When signing company document in Hungary, it is important that the signature should not have any fault, because it may result in an invalid document, and can cause a loss of time and money. To avoid wasting time and money for administrative mistakes, read the must-knows we gathered in this article.
If you want to use an apartment or flat as a seat of your company in Hungary you have more options, but be aware: the authority regularly checks the legal basis of the use of the company’s seat. At the same time, the careful planning of the use of company seat may help you to optimize your tax, so let’s see what kind of legal opportunities you have when you want to legally use your company seat.
Creating a company in Hungary became very convenient and fast nowadays. However, there are some extra requirements for foreigners that can make this simple procedure longer and problematic, especially in the field of official documents issued and/or signed abroad. To avoid unpleasant surprises, we tell you the four most important thing you need to keep in mind as a foreigner when setting up your company in Hungary.
When planning to establish a company in Hungary, the corporate name is always a crucial question. We know that it is hard to come up with a good idea that fits your style and the goal of the organization. Yet, all that effort is just a waste of time, if the name does not comply with the requirements of Hungarian law. So we share the most important points to keep in mind when thinking about a company name.
As a foreign company who plans to do business in Hungary, it sounds a great idea to open a Hungarian branch office. The main reason for this is that you do not need to provide the minimum capital contribution. Even if at first glance, opening a branch office seems simpler and cheaper than founding a Hungarian LLC as subsidiary, yet there are strong reasons to do the latter. In these article we share with you these considerations.
Under special conditions, the shareholder of a terminated LLC will be directly and unlimitedly liable for the company’s debts. You might think that your debt recovery problem is then solved: if the debtor company is terminated, you will sue the shareholder. However, the devil is always in the details and certain conditions must be met in order to turn successfully against the shareholder. In this short article we tell you 4 things that you need to know if you decide to sue the shareholder of a terminated LLC in Hungary.
Imagine the situation that you have a non-prospering company without perspectives. The mass of non-paid invoices is just bigger and your company cannot pay taxes. In this case the best option just to shut down the company and say goodbye to Hungary thinking that you are not liable for your company’s debts. However, the situation is not so simple, and leaving just the company behind may be risky. In this short summary we summarise the legal aspects of company shutdown which is worth to read before the “close-shop”.
A minority shareholder often finds it hard to protect his interest without real decision-making power in the shareholders’ meeting. At the same time Hungarian company law offers a wide range of protective measures that every minority shareholder should know inside and out, in order to effectively safeguard its investment. We summarise these legal tools in this article.
The transfer of business shares in Hungarian Limited Liability Companies is an under-regulated domain of Hungarian company law, however there are some “opt-out” and “opt-in” restrictions that shareholders should bear in mind if they want to set up a working shareholders’ structure. We summarise the must-knows of this topic in this article.
The worst nightmare of every creditor after a successful litigation is to find out that the debt cannot be recovered, because the debtor has no assets. However it might be that the case is not lost: in case that the court establishes that the contract is fraudulent, it has no legal effect in respect of the creditor. In our short summary, we address the question, when the contract shall be regarded us fraudulent under Hungarian case-law.
Becoming an authorised economic operator (AEO) in the European Union is an outstanding opportunity for international traders to make their import - export administration faster, more convenient and to reduce the custom clearance related costs. We present the main features of AEO status by answering the most frequently asked questions about this topic.
Finding the most appropriate company form is essential for every business. Hungarian company law offers a wide range of company forms available for foreign entrepreneurs and investors. We prepared this summary to help you to find the form that mostly fits your business goals.