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Company Formation Hungary



Hungarian Shareholders

Updated on Thursday 22nd February 2018

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Hungarian-Shareholders.jpgHungarian companies are regulated by the 2013 Act V, stated by the New Civil Code of Hungary; the shareholders’ rights and obligations are regulated by the above mentioned Act. In Hungary, only companies limited by shares can have shareholders and if you are interested in opening a business here, our Hungarian company formation specialists can provide you with an in-depth presentation on the legislation under which foreign or local companies can function. 

Company registration and minimum capital in Hungary

Foreign investors interested in opening a company in Hungary should know that, under the Hungarian legislation, only the following legal entities have limited liability:
company limited by shares – Részvénytársasá (RT), which can be private - Zártkörűen Működő Részvénytársaság (ZRT) or public - Nyilvánosan Működő Részvénytársaság (NYRT);
limited liability company - Korlátolt felelősségű társaság (KFT).
Shareholders are allowed only in the case of a company limited by shares, which can be a ZRT or NYRT. The incorporation of ZRT company requires a minimum share capital of HUF 5,000,000, while for the registration of a NYRT legal entity it is necessary a share capital of HUF 20,000,000

Provisions regarding shareholders in Hungary  

The Hungarian legislation stipulates that a company incorporated as a limited liability company can have a minimum of one shareholder. Shareholders in a company have the same rights and obligations as long as they have the same proportion of shares of the company; those who have at least 5% of the voting rights in the company are allowed to call on a general meeting, if needed (this rule is applicable for both ZRT or NYRT legal entities). 
Shareholders have the following rights:
participate at the general meetings;
voting rights;
receive dividends;
ask for information related to the business.
Shareholders can take a legal action against the directorate of the company, as long as the shareholders have at least 5% of the voting rights in the company
Foreign investors interested in registering a company in Hungary may request further information on the shareholders’ statute from our Hungarian company formation consultants

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