[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]
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(ii) its annual net turnover does not exceed HUF 2,400 million (approximately EUR 6,200,000) and (iii) the company employs not more than 50 employees in average. Companies not fulfilling the above requirements need to prepare and submit a business report in addition. Companies considered to be parent companies are required to prepare and submit consolidated reports. The companies’ financial statements need to be uploaded to the Electronic Financial Statement Website and these documents are available to the general public.
regulated sectors some restrictions may apply. 7.7 Minority shareholders’ rights and protection The protection of minority interests is guaranteed in the Civil Code. The members (shareholders) of a company having at least 5% of the voting rights can request that the meeting of the supreme body is convened. If the executive body does not comply with such request, the minority can enforce its right in the court. Minority shareholders have various additional protective rights, such as they can request that an auditor examines the last financial statement of the company or a given act of the executive officers of 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.
7.3 Audit requirements
The appointment of an auditor is only mandatory if the company’s yearly revenues exceed HUF 300 million or the company employs more than 50 employees.
7.4 Registers
Hungarian companies need to maintain different registers themselves, e.g., register of the company’s members.
7.5 Annual return
Hungarian companies need to submit concerning each financial year an annual return until 31 May of each calendar year if the financial year of the respective company is the same as the calendar year, otherwise, within 5 months from the end of the financial year.
8. Foreign
Investment, Thin Capitalisation, Residency
and
Material Visa Requirements 8.1 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.
7.6 Requirements
for
local
shareholding/directors There are no requirements for local shareholding or directors, but in
ILN Corporate Group – Establishing a Business Entity Series
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