Setting up a company for free

March 14, 2017

The Hungarian Parliament has adopted the bill T /13091 on the abolishment of certain duties and fees related to public administration thus several charges that burden both private individuals and enterprises will cease to exist.

It is good news for entrepreneurs that from the Ides of March no duty or publication fee is to be paid when setting up a limited liability company (“Kft.”), a single member company (“e.c.”), a general partnership (“Kkt.”) or a limited partnership (“Bt.”). Therefore the initial costs of the establishment of a company may be reduced by a few thousand or even by a hundred thousand Hungarian Forints.

Exemption from charges will apply both to general and simplified procedures. Because of the elimination of the duty benefits it won’t be worth to use the mandatory and universal sample articles of association in the future; it will be recommended to use custom-tailored articles of association adjusting them to the designed structure and profile of the company.

In case of setting up other companies or of procedures for registration of amendments the so far applicable costs will remain effective.

For personalized information, please contact our experts at Ecovis Hungary Legal.