In order to comply with the provisions of the new Hungarian Civil Code, limited liability companies (Kft.) shall increase the amount of their registered capital up to HUF 3 million.
The deadline for adjusting the articles of association in this respect is 15 March 2017, thus, the application for registration of the amendment shall be submitted to the competent court of registration before 14 April 2017 at the latest. However, the members of the company are not obliged to provide the cash contribution simultaneously with the modification of the articles of association, they may set up a different deadline for this purpose.
Those limited liability companies, who do not wish to increase the registered capital, may choose to transform to another form of business associations, i.e. general partnership (Kkt.) or limited partnership (Bt.). If the limited liability company fails to comply with the provisions of the new Civil Code concerning the amount of the registered capital, the court of registration might initiate judicial supervisory proceedings against the company.
By Gabriella Galik, Partner, KCG Partners Law Firm