[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]
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the company from the last two years. Also, minority shareholders can enforce the claim of the company against its members (shareholders), executive officers, supervisory board members or the appointed auditor of the company if the supreme body of the company decided not to do so, or the supreme body did not decide on this point even though it was on the agenda of the meeting. These rights serve as a safeguard against potential abuses by majority shareholders or management. The Civil Code ensures that minority shareholders can play a meaningful role in corporate oversight and accountability. In certain cases, minority shareholders may also initiate judicial review of resolutions adopted by the supreme body if such decisions violate the law or the company’s constitutive document. 8. Foreign Investment, Thin Capitalisation, Residency and Material Visa Requirements a. Any significant barriers to entry for an offshore company There are no general barriers to entry for offshore companies. Restrictions may apply in the sectors where a permit for the beginning of the company’s activity is required. b. Any capitalisation obligations The capital requirements for the limited liability company are set out under Section 3.2 of this summary and the capital requirement for private
companies limited by shares are set out under Section 4.2. In case the company does not fulfil according to its balance sheet data the minimum capital requirement determined for its company form in two successive financial years, then the supreme body of the company needs to decide either on the provision of the necessary capital or the reorganisation to another company form. c. Any special business or investment visa issues The citizens of the European Economic Area countries do not need any permit to live and work in Hungary. Some restrictions may apply to employees from Romania, Bulgaria or Croatia. Third country citizens need to apply for a residence permit and a work permit in order to live and work in Hungary. A third country citizen may apply for a Hungarian residence permit for maximum 5 years if he/she can prove to own, or if a company in his/her majority ownership owns treasury bonds of a nominal value of at least EUR 250,000 specifically issued by the Hungarian State for this purpose. 21 d. Any restrictions on remitting funds out of the jurisdiction Hungary does not levy withholding tax on dividend payments made to non- resident enterprises.
21 Further details regarding the Hungarian Golden Visa Program are available at the following link: https://jalsovszky.com/golden-visa
ILN Corporate Group – Establishing a Business Entity Series
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