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Hungary Amends Corporate Law Update from Nair & Co. International Compliance Team

(Bristol, UK) - Hungary is likely to amend its civil code making significant changes to the country’s corporate law effective March 2014, reports Nair & Co.’s International Compliance Team. Major highlights of the Hungarian amended corporate law include: 

New companies may be permitted to establish their own company guidelines (except where prohibited by

law). New companies limited by shares by default will be incorporated as private companies and thereafter may

 

only transform to public companies. Limited liability companies (Kft.-s) may be subject to new minimum registered capital requirements of HUF 3 million (~USD 13,635). Existing Kft.-s with registered capital below HUF 3 million (~USD 13,635) must increase their capital by March 2016 or when their deed of foundation is first amended after March 2014, whichever is earlier, to meet the new requirements. Failure to do so may resolute in a requirement to transform or dissolve.

Businesses planning to set base in Hungary using a Kft. (which is the most preferred business structure) can take benefit of the new minimum capital requirement and simplified regulations for corporate governance. For more information about doing business overseas or to know more about our International Expansion Services team please contact Nair & Co. Subscribe to regular global tax compliance alerts from Nair & Co. International Business Guide (IBG) is our online platform for companies wishing to optimize their multinational operations and would like to have specific business information for doing business in a particular country - Click Here. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-pointof-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250

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Hungary amends corporate law