ILN: Establishing A Business Entity: An International Guide

[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]

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Limited liability company (Kft.)

Private company limited by shares (Zrt.)

▪ Election of a supervisory board is mandatory, if (i) requested by the shareholders controlling at least five per cent of the total votes; or (ii) the number of full- time employees of the company exceeds 200 on annual average and the works council did not waive the employees’ participation right in the supervisory board.

Election of a supervisory board is mandatory, if the number of full-time employees of the company exceeds 200 on annual average and the works council did not waive the employees’ participation right in the supervisory board.

Supervisory board

▪ Appointment of an auditor is mandatory if (i) the company’s yearly revenues exceed HUF 300 million or; (ii) the company employes more than 50 employees; ▪ the auditor is elected by the supreme body.

Auditor

ILN Corporate Group – Establishing a Business Entity Series

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