Few people may know, but legislation often imposes formal and content requirements for certain documents. In most cases, these rules are for the sake of identification, which is in the interest of both parties, so it is important to pay attention to them to avoid misunderstandings. In this article, we examine the content requirements for documents used in business to business (B2B) transactions.
In Hungary the companies must have a company seat. There are several ways to use real estate as a company seat, however it is important to note that the authority regularly checks the legal basis of the use of the company’s seat. In this article, we present 3 ways to use real estate as company seat.
In order to boost corporate lending and thus increase economic competitiveness, the legislator recently implemented changes to the Hungarian Companies Act. From 1 January 2024, companies will have to provide additional information about the finances of the company in the registration or modification procedures. In this article, we summarize the new rules and the related deadlines.
The company name is an important asset of the company and also helps the customers when choosing between products or services. Therefore, a new company can only be founded with a name that is sufficiently different from existing companies. What are the legal options for a company if, despite the above, a new company with a very similar name has been registered? In our article, we analyse this question based on the recent decision of the Hungarian Supreme Court.
Nowadays, thanks mainly to technology, administration has become much faster, and this is also true for company formation. Once you have the necessary documents, you can start your company quickly. In this article we show you the timelines and deadlines regarding company formation procedure.
Similar to creating a company, closing a company is also a legal procedure at the Company Court. You will need professional help in this issue: a lawyer and an accountant. In this short article we summarise the legal aspects of the winding up procedure.
There are times when you reach a point when you decide it is better to finish your business in Hungary e.g. if you have a non-prospering company without perspectives. However, the situation is not so simple, and leaving the company behind may be risky. In this short article we summarise the legal aspects of company shutdown which is worth to read if you considering closing the company.
In some cases, setting up a supervisory board is mandatory. Its main function is to control the management and the managing directors of the company. In this article, we will summarise the most important rules concerning the supervisory board and its importance for deciding whether we need one in a Hungarian LLC.
In most cases the shareholders of a limited-liability company (LLC) will not be liable for the debts of the company with their own assets. However, there are situations, when the rule of limited liability shall not prevail and under special conditions, the shareholder of a terminated LLC will be directly and unlimitedly liable for the company’s debts. In this short article we summarize the most important cases when the limited liability becomes unlimited.
Signing a contract or making a statement on behalf of a company is a common task in business. During this "routine" process, parties often do not check whether the signatory of the other party can represent the company. Is a contract valid in Hungary if the signatory has no or limited signing authority? Who, what and from whom can claim in such a case? In this article you will find the answers to these questions.
Doing business also means a lot of paperwork. 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 4 must-knows we gathered in this article.
In this article we summarize the key-points of the limited liability company (LLC) formation in Hungary. By presenting the main features of the Hungarian LLC, we show why it is the favourite company form among foreign investors.
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.
Hungary is a popular target for investing in the Central Eastern European region thanks to the 9% tax on capital gains for SMEs and 15% personal income tax for individuals, which tax rates are among the lowest for both businesses and private individuals across Europe. However, there are extra requirements for foreigners that are important to pay attention to. In order to avoid unpleasant surprises, we would like to draw your attention to the following when you are setting up your company in Hungary as a foreigner.