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THE TIMLINE FOR SETTING UP AN LLC IN HUNGARY
11 October 2023
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.
1. What is the deadline for the court to decide on registration of a company?
a. Online formation
EU citizens and companies can form a limited liability company or a branch office in Hungary fully online, in a fast-track registration procedure.
The new provisions make it easier and faster to start a business in Hungary, even if there is minor restriction in relation with capital contributions.
The Company Court will decide on the registration within ten working days of receiving the request.
b. Simplified formation
A simplified company procedure is possible if the application for registration of a company is accompanied by a certificate of incorporation based on a model contract.
The court will decide on the registration application within one working day of receipt of the registration application and of notification of the tax number by the tax authority.
c. General rule
The court must issue an order for registration or refusal of registration no later than fifteen working days after receipt of the application for registration.
For foreign companies, we usually recommend the use of bilingual articles of association, which means that the general rules apply.
However, in our experience, such applications usually take no more than a few days to register.
2. What other deadlines should you look out for?
a. Opening bank account
After the successful registration, the company must open a bank account in 8 days after the company registration.
Each bank has different rules but usually they require the personal attendance of the managing director.
b. Capital contribution
The timing of providing the capital contributions is very flexible and only the below restrictions apply:
|
Cash contribution |
In-kind contribution |
|
Long deadline (2 years and 3 months), but until the full cash contribution is paid:
|
If the amount of the in-kind contribution exceeds the half of the initial capital of the company, then the whole in-kind contribution shall be provided by the shareholder at company formation
In other cases, the deadline for the provision cannot be longer than 3 years (stipulated in the articles of association) |
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