Does the name of the company require approval by the Registry or other authorities?
Normally not, but the names of outstanding historical figures may only be included in a corporate name by authorization of the Hungarian Academy of Sciences, and a name the rights of which are owned by others may be included in a corporate name only with the consent of the party holding such right. The name of a company may not contain: a) the name of any person who held a leading role in an authoritarian political regime of the 20th century; or b) an expression or the name of an organization that may be directly associated with an authoritarian political regime of the 20th century. A corporate name may contain the words “state” or “national” only if the State has majority control in the company.
How many prospective names will you require?
At least one.
Are there any restrictions or limitations on words that can be used in company names?
The name of a company must contain the selected company form, and at least a lead word.
The lead word is placed at the beginning of the corporate name. The lead word may be a foreign expression, an abbreviation or an acronym written in Roman letters. Other than the lead word, the corporate name may only consist of Hungarian words, in conformance with the rules of Hungarian grammar. In a corporate name only the lead word and the type of the company may be abbreviated.
The corporate name of a company must clearly differ from the name of any other company already registered in the country, and it must not suggest any misleading implications, in particular as relating to the scope of activities and the form of the company.
The name of a company must clearly differ from the official and commonly used name of public authority and administrative organisations.
Does the company need to provide a registered address?
Are there any limitations on the registered address (i.e. must be in-country, must not be a PO box)
The registered seat of a Hungarian company shall be in Hungary, and must not be a PO Box.
If the client has no physical location incountry, can they use your address for the purposes of registration?
According to recent changes, it is not possible to use the address of the attorney or law offices to such purposes.
How many Directors are required?
Limited Liability Company: Not limited, min 1 managing director
Company Limited by Shares: the company has either 1 general director or a board of directors consisting at least 3 members
Are any other officers required (i.e. Secretary)?
Appointment of the Company Secretary is not required.
In certain cases appointment of auditor and / or supervisory board is compulsory.
What personal details will you need for each officer?
Name, address, mother’s maiden name, tax number, date and place of birth, number of the ID card or passport.
Is there a requirement for any in country resident directors?
Do you need proof of address or Identity for officers? If YES, in what format?
Yes, the directors should sign an identification form, and an authorized copy of their ID card or passport will be required.
How many shareholders or members are required?
Minimum of one.
Are there any restrictions on who can be a shareholder or member?
What information will you require about shareholder or member?
Name, address or registered seat, mother’s maiden name, tax number and, in case of a legal person, registration number and the name of the registering authority.
Will you require proof of address or ID from the shareholders or members?
Yes, each shareholder or member will sign an information sheet, and we need an authorized copy of the shareholder’s or member’s ID card or passport or in case of the shareholder or member is an entity we need a certificate of incorporation.
Will the company need to specify a maximum number of shares that can be issued?
Is there a minimum number of shares that can be issued?
In case of a company limited by shares the number of shares is minimum 1.
Is any stamp duty paid on the issued share capital? If YES, at what rate is this calculated.
Limited Liability Company: HUF 100,000
Company Limited by Shares:
Private Limited Companies: HUF 100,000
In all cases the fee for announcement is HUF 5,000
Do you require any further information about the company or its officers?
How long will it take to complete incorporation
After preparing the necessary documentations they should be signed by the appropriate person (executive officers, members/shareholders). The documentation shall be filed to the Court of Registry which shall decide upon the registration in 15 days.
Is there any way to expedite the incorporation for an extra fee?
There is no possibility to expedite the incorporation.