[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]
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ESTABLISHING A BUSINESS ENTITY IN HUNGARY 1. COMPANY FORMS
The following company forms are available in Hungary:
(i) general partnership (Kkt.); (ii) limited partnerships (Bt.); (iii) limited liability company (Kft.);
(iv) private company limited by shares (Zrt.). Public company limited by shares (Nyrt.) is also an available company form, however, since 15 March 2014 it may not be established directly. The formation of a public company limited by shares can only be initiated by listing the shares of a private company limited by shares on the Budapest Stock Exchange, while also amending the form of the company. While the liability of the members of partnerships for the debts of the company is, in general, unlimited, the other 3 company forms offer limited liability to the shareholders / quotaholders. As a consequence, in the business practice, the Kft. form and the Zrt. form are the most popular company forms and in the forthcoming sections we will compare these two company types.
ILN Corporate Group – Establishing a Business Entity Series
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