Category: Company Formation

What is ADR? Thoughts on Alternative Dispute Resolution

The terms court, judge, defendant, plaintiff, etc., certainly sound familiar, but do you know that we have other options in order to resolve and close legal disputes and disagreements apart from litigation? The new professionals appearing during alternative dispute resolution are called, for example, mediators or arbitrators. Mediation, arbitration, litigation? In the following, we will […]

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Hungarian Trust as an alternative of holding company

The holding companies are widely used for a lot of different business purpose such as asset protection for families or direct investments of private equity funds, etc. Since the Hungarian Trust is subject to corporate income tax it also benefit the same CIT benefits but has extra features. What makes them usage attractive.  In Hungary […]

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The concept of the permanent establishment in Hungary

During our previous posts; we looked at the issue of corporate tax in some form. We talked about the global minimum tax; according to which large companies operating in the EU would be taxed with a global minimum effective tax rate of 15%. We also looked at foreign controlled companies; where the concept of a […]

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Peremptory Supervisory Board of Hungarian Companies

Hungarian company may appoint German-style Supervisory Board with strong decision-making powers.   The main role of the supervisory board is to monitor the management of the company in order to safeguard the interests of the legal person. And it must be composed of persons who are independent of the management of the company and who cannot […]

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Certificate of Good Standing of Hungarian companies

The business registry of company – where you can apply for Certificate of Good Standing of Hungarian companies – is available for the public for free. But the free database usually is not up to date, you can apply for certificate of good standing issued by the Registrar. The up to date business registry database […]

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The end of the world of shell companies?

    On December 22, 2021, the European Commission presented a key initiative against shell companies, which are created for tax avoidance purposes. The Unshell proposal is intended to ensure that legal entities which provide neither a real product nor an actual service to customers in the European Union cannot benefit from tax benefits and […]

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HUNGARY | Holding Company Regime

Hungary is relatively new entrant to the tax planning market thereafter the tax advantages for non-resident companies ended in y2005. The holding company regime is not the most flexible. The company management is not the cheapest and not the less bureaucratic in Europe. But with proper plannig and advice the HU Holding Company can function […]

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HUNGARY – Small Business Tax 2022

The companies fulfilling the conditions or newly formed companies and branch of foreign companies are also able to choose this special taxpayer status since y2013. The tax rate of the small business tax (SBT) is 10% in y2022. Since the minimum tax base is the annual labour cost (wages, bonuses, etc.) and the distributed dividend, […]

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Ultimate Benefical Owners Register in Hungary

The Central Registry of Ultimate Beneficial Owners goes live in Hungary next year (2022) years after the deadline set in the AMLD4 and AMLD5.To enhance of transparency in the name of anti-money laundering and counter-terrorist financing the AML Directive of the EU required the member states to maintain public record of ultimate beneficial owners (UBO). […]

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