[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]
248
2. DOCUMENTATION OF THE COMPANY ESTABLISHMENT In connection with the company establishment the following documents will need to be executed or provided: (i) Documents prepared by the attorney and to be signed by the founders / executive officers of companies: ▪ Constitutive document (Articles of association / Statutes / Deed of foundation – depending on the respective company form); ▪ Power of attorney given to the attorney representing the company in the court of registration procedure;
▪ Certificate on the valid use of registered seat / branch office of the company – a land registry extract or a statement of the lessor is sufficient; ▪ Verification of payment of the registered capital of the company – usually a bank certificate is sufficient;
Tax identification number of the quotaholders / shareholders and the executive officers – if individuals are reluctant to provide their home tax number, a Hungarian tax number can be obtained.
▪
3. THE ESTABLISHMENT PROCESS A company is considered as formed if it is admitted to the register of companies. The date of incorporation of the company is considered to be the date when the registration takes place. The company may start its operations as a “pre - company” as of the date of the countersignature of its constitutive document and engage in business operations after having received its tax identification code. The Registration Act draws a distinction between regular and simplified registration procedures. The simplified procedure is applicable if the company’s constitutive document is based on a standard form prescribed by the laws. The use of standard forms provides less flexibility but leads to quicker registration. It must be noted that the establishment of a limited liability company is free of any procedural duties (except for a minimal publication fee), while in case of the incorporation of a private company
Declaration of acceptance of the executive officers / supervisory board members / auditor - the appointments will only become effective if the elected persons declare their acceptance;
▪
▪ Specimen signature of the persons signing on behalf of the company; ▪ In case of a kft.: a members’ list indicating the members / quotaholders of the company;
Appointment of a delivery agent If any executive officer or member / shareholder of a company does not have a Hungarian address / registered seat;
▪
▪ Other ancillary documents set forth by the laws. (ii) Documents to be provided by the founders: ▪ In case the founder is a foreign entity: the certificate of incorporation of the founder;
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator