Business
Company law inside the 2013 Civil Code with a court registry
Hungary abandoned a standalone companies act in 2014 and placed company law in Book Three of the Civil Code. The kft (limited liability company) needs HUF 3 million of capital, and registration runs through the county court of registration on electronic filings by a lawyer.
Key rules
- Company formation documents must be countersigned by an attorney and filed electronically.
- Minimum capital is HUF 3,000,000 for a kft and HUF 5,000,000 for a private company limited by shares.
- Simplified registration on a template deed is decided within one working day.
- Directors are liable to creditors where they disregard creditor interests once insolvency threatens.
Governing law
- Act V of 2013 on the Civil Code (2013)Book Three governs legal persons and companies.
- Act V of 2006 on company registration (2006)Registry procedure and publicity.
- Act LXXXV of 2020 on the register of beneficial owners (2020)
In practice
Every company must hold a client gate style electronic mailbox for official service, and ignoring it is the most common reason a business is struck off without realising proceedings had begun.