Doing Business in Hungary, Hungary Business Conduct - Allo' Expat Hungary
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Doing Business in Hungary
 
 
 
 
 

Because of less-stringent registration and operating procedures and lower minimum capital requirements, most new private firms incorporating in Hungary choose the limited liability company form (Kft) form, which can be set up by a single owner. Other forms include the limited partnership and general partnership, both of which require unlimited legal liability.

Forms of Business Organisation

Public Company Limited By Shares (Nyrt)

• The members do not bear liability for the obligations of the company.
• The share capital is minimum HUF20 million, and may also be established with in-kind contributions only.
• Public companies limited by shares have legal status.

Private Company Limited By Shares (Zrt)

• The members do not bear liability for the obligations of the company.
• The share capital is minimum HUF5 million, and may also be established with in-kind contributions only; it may be established also with just one member.
• Private companies limited by shares have legal status.

Limited Liability Company (Kft)

• The members do not bear liability for the obligations of the company.
• The liability of the members to the company is only their capital contributions.
• The members may not be recruited through public offerings.
• The minimum capital is HUF500,000, and may also be established with in-kind contributions only.
• Limited liability companies have legal status.

Unlimited Partnership (Kkt)

• The member’s liabilities are joint and unlimited for the partnership's obligations.
• The partnership must have at least two members.
• There is no minimum initial capital requirement to set up a company.
• The members are not required to take part personally in the activities of the partnership.
• The unlimited partnership form has no legal status.

Limited Partnership (Bt)

• A limited partnership must have at least one general partner and at least one limited partner.
• There is no minimum initial capital requirement to set up a company.
• The general partner's liability is unlimited for the partnership's obligations.
• The liability of the sleeping partners is limited up to the incidence of the subscribed capital.
• The limited partnership form has no legal status.