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Company Registration Will Be Possible in 1 Day Also for Foreigners Soon

Company Registration Will Be Possible in 1 Day Also for Foreigners Soon

Hungary
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To enhance the competitiveness of the Hungarian economy, the Government plans to accelerate the process of setting up companies in Hungary for foreigners. Currently, individuals who do not understand Hungarian language, should wait days or even weeks to receive the decision from the Hungarian Company Registry Court certifying the registration of their new company.

In contrast, those proficient in Hungarian can often have their new company registered within 24 hours through a simplified procedure with the assistance of a local lawyer using an official “constitution document template” (“szerződésminta” in Hungarian). However, the one-day registration rule currently applies only when the document template is used in Hungarian, posing an administrative burden for foreign investors planning to enter the Hungarian market.

To address this issue, the Government has initiated the publication of the English versions of the document templates. Additionally, the Government will release a detailed English-language guide on the admissibility and usability of foreign documents. Furthermore, a forthcoming simplification entails offering the option to specify the currency of accounting and the founder’s assets directly in the document templates used for incorporation. This measure aims to alleviate the additional burden of currency conversion, allowing for the free choice of currency (HUF/EUR/USD) for all types of companies in the simplified registration procedure, aligning with the company's expected income.

The relevant legislative amendments are currently under preparation.

By Lilla Majoros, Attorney at law, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com