October 9, 2017

COMPANY REGISTRATION PROCEDURE

Company registration procedure

In accordance with the law, the foundation documents can only be prepared and filed with the Court of Registration by a local, qualified lawyer.

  1. Generally, the company’s founding documents must be signed by the owners and directors in the presence of a local lawyer. It is possible to have them signed without appearing before the Hungarian lawyer in person, but in this case they must be signed in the presence of a notary public, and then apostilled.
  2. Once the founding documents of the company have been signed, a temporary bank account can be opened for the company, and the initial authorized capital is paid in to it.
  3. If the director decides not to pay the amount of the company’s authorized capital in to the bank account, he signs a statement confirming that the money is at his disposal in the company’s cash desk. In this case, the preliminary bank account is not opened, but the amount of the  authorized capital becomes accountable and must appear in the company’s accounting records.
  4. The company documents are then submitted to the Court of Registration electronically by the lawyer .
  5. Company registration takes an average of 1-2 weeks, depending on the workload of the Court of Registration.
  6. After registration, the company must then register with the tax authority, and receives a tax number and VAT number (Hungarian and, if necessary, European).
  7. Within 15 days of registration, the director of the companymust open a permanent bank account for the company..
  8. As soon as it has been registered, the company must also conclude an agreement with qualified local accountant, who will provide the company with accounting support, and ensure the transmission of company correspondence.

Is it necessary to come to Hungary to register a company?

To register a Hungarian company one or two visits to Hungary will be necessary.

Generally, the company’s founding documents must be signed by the owners and directors in the presence of a local lawyer. It is possible to have them signed without appearing before the Hungarian lawyer in person, but in this case they must be signed in the presence of a notary public, and then apostilled. At this stage, therefore, it is not strictly necessary to come, however, it is worth bearing in mind that the certification and apostilisation of documents can be rather expensive. It is worth doing some calculations and deciding whether a visit to Hungary is worth it instead of having to have all the documents certified.

The number of documents to be signed by the owners is small, so it may be worth having their signatures certified and apostilled to save a visit to Hungary. The director, on the other hand, needs to sign a lot of documents, so it would be better for the director to visit Hungary at this stage, especially as it is also necessary to pay up the authorized capital of the company.

If the company is established with a director provided by LAVECO, and the director alone will control the bank account, then it is not necessary for the client to come to Hungary.

The second visit (or the first one, if the documents were legalized at the place of residence of directors and owners) is necessary for the opening of the company’s bank account.

Again, in the case of directors provided by LAVECO, who will have sole control of the company bank account, a personal visit by the client is not required.