Body in Charge of Incorporation (Company Registration) in Hungary

Body in Charge of Incorporation (Company Registration) in Hungary | Bestar

Hungary Company Incorporation Process Explained

The primary body in charge of incorporation (company registration) in Hungary is the Court of Registration (Cégbíróság), which operates under the Hungarian judicial system.   

Here's what you should know about the process and the involved parties:

• Court of Registration (Cégbíróság): This court is responsible for the registration of new companies, as well as any changes to existing company data. The entire registration procedure has been electronic since 2006.   

• Mandatory Legal Representation: In Hungary, it is mandatory to have legal representation (an attorney or notary) to countersign the company's founding documents (e.g., the Articles of Association) and to submit the application for registration to the Court of Registration.   

• Online Submission: Applications for company registration and any subsequent changes are submitted electronically through the Court of Registration's online system.   

• Timeline: The registration process typically takes between 1 to 15 working days from the submission of all necessary documents. In a simplified procedure using a standard charter document, it can be faster (2-8 working days).

• Other Registrations: Once the Court of Registration completes the initial registration, it also automatically registers the company with the National Tax and Customs Administration (NAV) for a tax number and with the Central Statistical Office (KSH) for a statistical number.

• Chamber of Commerce and Industry: After the court registration, the new company is obliged to register with the competent Chamber of Commerce and Industry within 15 days.

While the Hungarian Trade Licensing Office (Magyar Kereskedelmi Engedélyezési Hivatal - MKEH) exists, its responsibilities are primarily related to trade licenses, export control, market surveillance, and the assaying of precious metals, rather than the initial incorporation of companies.   

In summary, for the incorporation of a company in Hungary, your main point of contact will be the Court of Registration, and you will need to work with a Hungarian lawyer or notary throughout the process.

How Bestar can Help

Body in Charge of Incorporation (Company Registration) in Hungary

Engaging Bestar offers significant advantages when incorporating a company in Hungary. Our expertise streamlines the process, ensures compliance, and can save you time and potential complications down the line. Here's how we can help:   

• Expert Guidance on Legal Structure: We can advise you on the most suitable legal structure for your business (e.g., private limited company - Kft., public limited company - Nyrt., etc.) based on your business activities, liability considerations, and tax implications. Our insights ensure you choose a structure that aligns with your long-term goals.   

• Drafting and Reviewing Founding Documents: Bestar is skilled in drafting the necessary legal documents, such as the Articles of Association (Charter Document). We ensure these documents comply with Hungarian law, accurately reflect your intentions, and include essential clauses to protect your interests. We can also review any pre-existing agreements or documents related to the incorporation.

• Ensuring Legal Compliance: Hungarian company law has specific requirements and procedures. Bestar ensures that all aspects of your application and documentation adhere to these regulations, minimizing the risk of rejection or delays by the Court of Registration. We stay updated on the latest legal changes and ensure your incorporation process is compliant.   

• Managing the Electronic Submission Process: Since all applications are submitted electronically, Bestar will handle the technical aspects of the online submission to the Court of Registration. This ensures the application is correctly formatted and all required information is accurately provided.

• Acting as Your Legal Representative: We act as your official representative before the Court of Registration, handling all communication and addressing any queries or issues that may arise during the registration process. This saves you the administrative burden and potential language barriers.   

• Facilitating Related Registrations: While the Court of Registration handles initial tax and statistical number registration, Bestar can guide you on other necessary registrations, such as with the local Chamber of Commerce and Industry, and ensure you understand your ongoing obligations.

• Minimizing Errors and Delays: Our experience and attention to detail significantly reduce the chances of errors in the application or documentation, which can lead to delays in the registration process. Getting it right the first time saves you valuable time and resources.

• Providing Ongoing Legal Support: Beyond the initial incorporation, Bestar can provide ongoing advice and support on various legal matters related to your business operations in Hungary, ensuring continued compliance and helping you navigate the legal landscape.

In essence, engaging Bestar provides you with the legal expertise and administrative support necessary for a smooth and compliant company incorporation in Hungary, allowing you to focus on developing your business.   

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