Hungarian 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.
If you need accounting services for a Hungarian company limited by shares, you can rely on our accountants in Hungary. The accountants can prepare the company’s financial documents that must be submitted with the local institutions.
They can also maintain daily accounting documents and can prepare any documentation concerning payroll, which must be maintained throughout the entire year, for each month of activity.
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.