Hungary




	Hungary

Hungary

Key Corporate Features
General Information
Company Information
Compliance

Key Corporate Features


General
Type of Company:	KFT/RT
Common or Civil law:	Civil
Migration of Domicile Permitted:	Yes
Tax on Offshore Profits:	3%
Language of Name:	Latin alphabet
Corporate Requirements
Min. No. of Shareholders / Members:	One / One
Min. No. of Directors / Managers:	One / Three
Corporate Directors / Managers Permitted:	Yes
Company Secretary Required:	No
Standard Authorised Share Capital:	US$ 11,000 / 73,000
Local Requirements
Registered Office / Agent:	Yes
Company Secretary:	No
Local Directors:	1/2
Local Meetings:	No
Government Register of Directors / Managers:	Yes
Government Register of Shareholders / Members:	Yes / Yes, but bearer shares allowed
Annual Requirements
Annual Return:	Yes
Submit Accounts:	Yes
Recurring Government Costs
Minimum Annual Tax/ Licence Fee	US$ 3
Annual Return Filing Fee	N / A

General Information

Hungary is located in the central Europe. It shares borders with Slovakia, Austria, Slovenia and Ukraine. The total size of Hungary is 93,033 km2 being home to 10,320,000 Hungarian speaking inhabitants. English or German is commonly used in the international business. The capital city is the beautiful Budapest known for its monuments and galleries. The Hungarian Forint (HUF) used as the official currency is freely convertible. Hungary is a significant tourist destination visited every year by several millions tourists from all over the world.

Hungary is a new financial center of the region. It is the most developed country of the former “Eastern block” and will join the European Union by May 1, 2004. Hungary has an excellent infrastructure, advanced banking and sophisticated legislation regulating the incorporation of the tax beneficial companies. Hungary is a signatory to several tens of the double taxation treaties. In addition, it has introduced a number of incentives for the foreign investors interested in investments into the priority sectors. It is interesting to note that more than 150 new offshore companies and about 5,000 local resident companies have been registered in Hungary during the last year. Currently, about 300 offshore companies are registered in the company register.

Company Information

Companies used for tax planning purposes in Hungary are incorporated under the Companies Act from 1996. Hungary recognizes two types of the offshore companies; primarily the private limited liability company (KFT) and the joint stock company (RT).

The following documents are required by the commercial court registering the company into the company register in Hungary: the Memorandum of Association, Articles of Association, names of the Directors (executives), of the company and their signature specimen, address of the seat of the company, local representative and the document proving the full or partial payment of the registered capital at one of the banks in Hungary. If there are no obstacles, the commercial court may register the company within 30 days. However, the company may commence conducting business only following the receipt of the registration certificate from the Hungarian financial (tax) office.

The company register is publicly available including the information on the incorporation documents and the Directors. In number of specific cases, we may provide assistance through our professional managers who will manage the company according to the instructions of the client.

Compliance

KFT

The company is required to have at least one Director and one shareholder. As this is not a joint stock company, the ownership interest is not expressed by shareholding but rather by the interest being specified in the Memorandum of Association. Only an individual may serve as a Director, any individual or legal entity may be a holder of the ownership interest.

The registered capital of the company must be at least in the amount of 3 mil. HUF (approx. 11,000 USD), while at least 50% of the registered capital must be paid in prior to the registration of the company at one of the Hungarian banks, the remaining 50% must be paid no later than one year from the registration of the company.The limited liability company is subject to a tax rate of 3% and an annual fee in the amount of 800 HUF (3 USD).

The company is required to have at least three Directors and one shareholder. Only an individual may serve as a Director, the corporate Directors are not permitted. Any individual or legal entity may be a shareholder of the company. The majority of the Directors of the company must be the Hungarian residents. The bearer shares are permitted.

The registered capital is required in the minimum amount of 20 mil. HUF (approx. 73,000 USD), while at least 50% of the registered capital must be paid in prior to the registration of the company at one of the Hungarian banks, the remaining 50% must be paid no later than one year from the registration of the company. The joint stock company is subject to a tax rate of 3% and an annual fee in the amount of 800 HUF (3 USD).

Both the accounting books and records and the audit are required. The accounting files and the financial statements must be completed no later than on May 31 of the prospective fiscal year. Our Hungarian experts will be happy to assist you with the accounting books and records.

Given that each company is incorporated for a specific client and it is required to pay in the registered capital, we have no shell companies available, as well as the registered names.

Contact: info@personaloffice.com