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Mandatory Electronic Administration Procedures for Business Entities Are on the Horizon

Mandatory Electronic Administration Procedures for Business Entities Are on the Horizon

Hungary
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From 1 January 2018, a broad range of business entities, including companies limited by shares, limited liability companies, limited partnerships, trade associations, private entrepreneurs, sole corporations, branch offices, cooperatives and law firms as of today, will be obliged to carry out an expansive list of administrative procedures by means of electronic communication. 

The business entities shall submit their ‘contact point’ for electronic communication to the so-called disposition register (“Rendelkezési Nyilvántartás – RNY” in Hungarian) until 30 August 2017. Such contact point for electronic communication could be a secure electronic delivery address or other means of electronic contact established by a government decree. In case it is mandatory to register a business entity into an official register under the law, then the above mentioned requirement may be completed by submitting its contact point for electronic communication to such official register. For example, a limited liability company may submit its contact point to the companies register.

Secure electronic delivery address will be granted to the business entities by a service provider appointed by the Hungarian Government, and is officially referred to as the ‘company gate’ (“cégkapu” in Hungarian). Each business entity shall register for its own company gate. The company gate system is currently in test run, however, a grace period with limited scope is granted to the business entities until 31 December 2017. Accordingly, in case the business entity’s contact point for electronic communication is not known to the authority, the authority shall communicate on paper with the business entity at the first occasion and shall simultaneously notify the business entity that it can only submit its motions and other documents electronically. 

By Rita Parkanyi, Attorney, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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