LIMITED LIABILITY COMPANY
A limited liability company (LLC) can be established in Hungary with a minimum registered capital of HUF 3,000,000. The capital contributions can be made in cash, in kind or both.It is possible to sign the incorporation documents remotely but in this case the documents shall be signed at the Hungarian Consulate/Notary in abroad or via skype videocall authentication (the skype videocall authentication is provided by us and its fee is included in our package fee), but if possible you can also come to Budapest to sign the documents here if it is suitable for you.
We hereby summarize the key issues regarding the operation of an LLC.
Hungarian companies have to comply with the provisions of Act C of 2000 on Accounting. Accounts have to be kept in line with the Hungarian Accounting Standards, in Hungarian language. Annual reports have to be deposited at the Court of Registration and they are available to the public. We strongly suggest hiring an accounting firm to provide the necessary accounting services to the company.
Shareholders’ Meeting / The Sole Shareholder
The supreme body of a private limited company is the shareholders’ meeting, which makes decisions by way of resolution of the shareholders. In case the company will be established by only one shareholder, the sole shareholder will be the supreme body of the company, and he shall pass the decisions in writing, and notify in writing the managing directors on the resolutions adopted by it, otherwise, the resolutions will not enter into effect.
The LLC is managed by its managing director(s) appointed by the Shareholders’ Meeting / sole shareholder. A managing director may be any adult age natural person with full disposing capacity, however certain exclusion rules apply. The managing director is responsible for the everyday operation of the company and for reporting important changes in the structure of the company to the Court of Registration. The managing director is entitled to represent and sign on behalf of the company.