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
