The approximate thing before buying or creating a company in Hungary is knowledge and awareness about all aspects of doing business there. A businessman should be aware of laws, taxation, employment, problems and how they can be solved. One of the essential points in commerce activity is choosing the type of company. Thus let’s overview some of the various kinds of businesses in Hungary.
Korlátolt felelősségű társaság (Kft) or in English “Limited liability company” (LLC)
It is a form of small and medium-sized enterprise. Kft is one of the most typical models of a corporation. This kind only entails business-related proceedings, such as the trading of things, the production of works, or the rendering of various services, all to make a profit.
- The foundation of a Kft with one member is not prohibited. It can also have more owners. It is not permissible to publicly announce membership.
- The enrollment time is up to 15 days.
- The lowest amount of capital is €10,000 (HUF 3 million) and there is the ability to contribute it in cash or kind.
- There are no restrictions on the allowed capital size of Kft. Flexible requirements for filling the authorized financing.
- Holders might be foreigners or Hungarians, private individuals or corporations.
- The accountableness of the members is restricted.
Közkereseti társaság (Kkt) or Partnership without limits
It is a firm with at least two people who are in charge of its arrears and assiduously involved in running the business.
- It is made up of at least two people or businesses, and each member is solely responsible for the Kkt’s commitments.
- Kkt. may gain duties, amass rights, and take part in legal disputes. Its members serve as its representatives.
- Duration of setting up: maximum 15 days.
- Before establishing this structure, the unlimited answerability of the partners must be taken into account.
- Capital inflows may be made in kind or cash and there is no required investment sum of money.
Betéti társaság (Bt) or Association with limits
It is a collaboration with two or more business partners.
- The interesting aspect of this category of the company is the condition of existence of two types of owners. The entrepreneur group should include at least two partners. One of them has to assume the full legal responsibility for a business and the other business partner whose competence is narrowed to the amount of their contribution.
- Duration of setting up: maximum 15 days.
- The general partner oversees its management.
- There is no minimum capital requirement, capital inflows may be made in kind or cash.
- Before establishing this structure, the unlimited responsibility of the partners must be taken into account.
Részvénytársaság (Rt) or Company that is limited by shares
A corporation that is bounded by shares is a type of corporation where stockholders can buy and sell shares of the firm’s equity.
Based on the number of investors who are due money on their shares, a company’s capitalization might be restricted. If the company experiences a big financial setback or goes out of business, this constrains it from merely paying off the initial deposits.
- Shares of Rt can be publicly-traded or set up at a bourse, whether it is a private or publicly listed firm. Призывать публично к членству запрещено.
- The registration market as well as the bearer market allow foreign investors to purchase bearer shares. Preference shares may not exceed 50% of registered funds, and interest-bearing shares may not exceed 10%.
- The least possible financing is €16,000 (about HUF 5 million) for a private firm with charge, and €65,000 (about HUF 20 million) for public ones, which may be paid in cash or kind.
- The answerability of the people who have ownership of the company is restricted.
External satellite offices in Hungary
- An organization from other states can open satellite offices in Hungary.
- A branch is not a separate legal organisation, it is an addition to the non-native firm rather than
- It is under the control of the main office.
- The responsibility of the members is restricted.
- There is no required investment sum of money.
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