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Company Formation Hungary



Hungarian Shareholders

Updated on Thursday 24th November 2022

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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
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
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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Mihai Cuc, Partner of MHC Law Firm