Hungarian Limited Info

An LLC may be founded in Hungary with an initial capital of 500,000,- Forint, i.e. about EUR 1,700,-. Previous to this, initial capital had to be 3 million Forint, this having been the motive of only few LLC founding, due to the fact that shareholders could not afford to pay in over EUR 10,000,- initial capital into the bank account. This lead to limited of company registration in Hungary.
As of 2008 companies need only to dispose of 500,000,- Forint as initial capital. In several European states company managers need to deposit the necessary sum into the bank, yet this is not the case in Hungary.
Via our lawyers’ office in Hungary shareholders do not need to pay in the initial capital of 500,000,- Forint into a bank account, due to the fact that we prepare a special declaration where the future company manager declares at his/ her own authority that he/ she disposes of the necessary initial capital.

At the Commercial Court the company in founding will be able to prove via this declaration that the sum of 500,000,- Forint being EUR 1,700,- stays at the company’s disposal.
The LLC then will be registered within 1-5 workdays and starting with the moment of registration also through the Commercial Court and after European tax identification number receiving the company may already issue invoices. It may yet be the case that the European tax identification number appears in the European internet database only after a few days and it may be the case that the Hungarian company’s associates conclude no businesses until they will be able to control the validity of the European tax identification number. Database actualization occurs weekly.
There is also the possibility that several associates, up to a maximum of 50 partners found a new company. A company may also have several managers in the same time.
Foreigners and also other existing companies may found new companies in Hungary.
For the case of non European originated managers or associates we suggest the acquisition of already existing companies, due to the fact that company founding for non Europeans is more complicated. For such cases we offer already existing companies with an existing European tax identification number. For invoice issuing desires we may also suggest electronic invoicing programs.
Attention: Acceptable are invoicing programs only approved by the Hungarian tax office.
In case of later company closing the firm will need to submit its annual tax declarations and may have no debts. If fulfilled, the Hungarian tax office closes the company in approximately 3 months at manager’s request. The cost of company closing may achieve up to EUR 1,000.

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