In Hungary, the corporate registry, known as the Companies Register, plays a crucial role in regulating business entities and ensuring transparency in corporate operations. Various documents are filed with the registry, each serving a specific purpose in the lifecycle of a company. Firstly, during the incorporation process, founders submit articles of association outlining the company’s […]
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 […]
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 […]
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 […]
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 […]
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 […]
The New Civil Code (Act 5, 2013) was published in the 31st edition of the Hungarian Official Gazette, which will come into force on 15th of March, 2014 and determines properly the concept of the registered address of the companies. The legal entity does not have to continue its operations at the registered address in […]
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 […]
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 […]
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, […]
