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).
RT
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
|
