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.
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.