Blog » HOW TO OPEN AN ONLINE SHOP IN HUNGARY?
HOW TO OPEN AN ONLINE SHOP IN HUNGARY?
06 November 2017
Online shopping is more and more popular among customers for certain reasons: it is more convenient and often cheaper than traditional shopping. Online shopping is not only an attractive alternative for the shoppers but for the traders, too. By opening an online shop, you can remove the need for expensive retail premises and customer-facing staff. Another huge advantage is that you can expand your market beyond local customers very quickly. Here are 4 things that you need to clarify if you decided to open an online shop in Hungary.
1. Do you need to set up a Hungarian company?
Operating an online shop is considered as a commercial activity which in Hungary can be pursued by traders. Unless a certain activity requires a special company form (eg. tobacco in Hungary can only be sold by a company which has at least one shareholder with unlimited liability), the trader is free to choose its company form.
2. Do you need a permit?
There are certain products which in Hungary can only be marketed retail shops based on a permit (eg. animal health products, plant protection products).
This means that those products which are free to be sold online can be marketed without a permit. In the meantime, you have to notify the competent commercial regulatory authority (the notary who is situated where the registered seat of your company is). The procedure is a quite simple and cheap.
In case you decided not to set up a Hungarian company, there is kind of a loophole as there is no competent authority in Hungary for your situation. However, you were probably required to make some kind of registration in home country based on your own law.
3. Do you need terms and conditions?
You will definitely need to have appropriate terms and conditions. If you are already present on foreign markets, at first it might seem a good idea to simply translate your existing terms&conditions to Hungarian.
Nevertheless, we would like warn you against this half-way solution as you might lose more money than what you have saved.
Especially in case of B2C transaction (where the shoppers are natural persons who do not act for business purposes) there are several consumer protection laws which apply on a compulsory basis and you cannot differ from them in your terms&conditions.
You are required to inform your consumer buyer about dozens of things (eg. their right to withdrawal, their right in connection with faulty performance). If you fail to do so, the contract concluded with the buyer might be considered as null and void.
When you operate an online shop, you will process a number of personal data, like the name, address, e-mail address or IP-address of your buyers. You may want to send newsletters or targeted offers for your customers.
In order to process personal data, you need to have a legal basis which is in most of the cases, the consent of the data subject which can be obtained with the usage of consent forms.
In case you have any questions in connection with opening an online shop in Hungary, feel free to contact our team.
IS THE JUDGE BIASED BECAUSE OF UNFAVOURABLE JUDGMENT IN OTHER CASE?
Can a judge be disqualified from deciding the legal dispute on the grounds of bias if he has delivered a judgment unfavourable to the plaintiff in another case? Can a court be biased if the plaintiff has "challenged" a previous decision of the court before the European Court of Human Rights? In this article, we answer these questions by analysing a recent judgment of the Hungarian Supreme Court.Read more »
CAN INCOMPATIBLE WORKPLACE BEHAVIOUR BE A GROUND FOR DISMISSAL IN HUNGARY?
Refusal of employer 's instructions, unjustified absence, intentional damage: some cases where the justification for dismissing an employee is relatively easy to determine. What happens, however, if the employee does not commit a severe breach of duty similar to the one above, but his or her colleagues consider him incompatible, with whom it is impossible to cooperate, or even afraid of him or her. Can dismissal be justified by behaviour that is incompatible with others and creates disharmony in the working environment? In our article, we seek the answer to this question in the light of Hungarian judicial practice.Read more »
CAN A JUDICIAL ERROR CREATE HUNGARIAN JURISDICTION DESPITE A PLACE OF PERFORMANCE ABROAD?
Can a defendant, domiciled abroad, be sued in Hungary under the Brussels I Regulation in the event of defective performance of an international sales contract if the place of performance is abroad? Can the jurisdiction of a Hungarian court be established based on the fact that the lower court expressly established its jurisdiction at the beginning of the litigation? How is the EXW clause to be interpreted within the meaning of the Brussels I Regulation? In our article, we analyse the recent decision of the Supreme Court of Hungary.Read more »