Communications with the court of registry and submission of company documents shall be made electronically.
If the company’s foundation document have been drawn up based on the standard form contained in the Schedule to Act IV of 2006 on Business Associations, the company will be registered in an accelerated procedure and at lower costs.
However, before the future members automatically elect to choose the standard form, they are recommended to consider the frameworks, manner, risks, property and inheritance implications of their cooperation. Namely, they may regulate such in detail and comprehensively in the articles of association (deed of foundation) preventing so any potential future disputes or undesired situations.
Limited partnership (in Hungarian: “Bt”)
A limited partnership is an unincorporated business association (i.e. a separate entity from the members), which has at least one general partner and one limited partner. The general partner shall be liable for the company’s outstanding debts with his own assets while the limited partner shall be liable up to the amount of his capital contribution.
There is no prescription for the minimum amount of the capital contributions to be provided by the members of limited partnerships, so the costs of company incorporation in Hungary can be kept to the minimum. Limited partnerships might be attractive through their simple organization and low costs of operation, however, their disadvantages include unlimited liability of the general partner and their low prestige.
Duty on incorporation: HUF 25 000 if the articles of association are drawn up using the standard form; in other cases: HUF 50 000.
Publication fee: HUF 0 if the articles of association are drawn up using the standard form; in other cases: HUF 5 000.
Limited liability company (in Hungarian: “Kft”)
A limited liability company is a legal entity, i.e. an entity separated from the members. It may be incorporated even by a single member where the liability of the member(s) for the company’s outstanding debts is limited to his (their) capital contribution (financial contribution), i.e. the member(s) shall not be held liable for the company’s outstanding debts with his (their) own assets.
The initial capital of a limited liability company may not be less than HUF 500 000 consisting of the members’ financial contributions (capital contributions) provided as cash and/or in-kind contributions.
Notwithstanding its higher costs of incorporation and operation, the limited liability company form is rendered attractive by its higher prestige and the security of the members’ own assets.
Duty on incorporation: HUF 50 000 if the articles of association are drawn up using the standard form; in other cases: HUF 100 000.
Publication fee: HUF 0 if the articles of association are drawn up using the standard form; in other cases: HUF 5 000.
Companies limited by shares
Companies limited by shares may be founded either privately (closely held) or publicly (publicly held) and may be operated either privately (in Hungarian: “Zrt”) or publicly (in Hungarian: “Nyrt”) depending on whether or not the shares therein are issued publicly.
The obligation of the members (shareholders) of companies limited by shares vis-á-vis the company shall be limited to providing the shares thereof at face value or issue value. With the exceptions set out in laws for company incorporation in Hungary, shareholders shall not be held liable for the liabilities of the company.
A private company limited by shares and a public company limited by shares may be incorporated with minimum HUF 5 000 000 and minimum HUF 20 000 000, respectively.
Duty on incorporation for Zrt: HUF 50 000 if the memorandum of association (or articles of association) is (are) drawn up using the standard form; in other cases: HUF 100 000.
Publication fee: HUF 0 if the memorandum of association (or articles of association) is (are) drawn up using the standard form; in other cases: HUF 5 000.
Duty on incorporation for Nyrt: HUF 600 000
Publication fee: HUF 5 000
