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BUSINESS LEGAL STUCTURES IN HUNGARY

ESZTER KOVÁCS & VAJNAI VIKTÓRIA – BGRG & FOUNDATION OF KNOWLEDGE

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SELF-EMPLOYMENT/SOLE PROPRIETOR �EV.

  • Those who are Hungarian natural persons/citizens or citizens in the European Union can be registered self-employed persons
  • People with disabilities and criminal record are exluded
  • Tax payment: given percentage of the income( personal incom tax) or KATA, which allows the individual to have an annual 12 million Forints ca. 3000 Euros, with a monthly fixed total only can work for individuals not for companies
  • It is for entrepreneurs who have few emloyees

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  • Advantages:
    • Cheap, easy and quick to set up
    • Working hours are flexible
    • Easy accounting
  • Disadvantages:
    • Unlimited power and responsibility
    • Responsible with their whole wealth
      • Leaving you completely open to potential legal issues
    • Cannot inquire allowance for their employees

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EXAMPLES OF SELF-EMPLOYMENT

  • Hairdresser
  • Painters
  • Insurance agents
  • Cosmetician
  • Accountant
  • Personal trainer

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INSET PARTNERSHIP�BT.

  • Founded by two people: inside person & outside person
  • Inside person who works for the company
  • Outside person who is the benefactor/investor
  • Usually the two members of the partnership are husband and wife
  • Only the inside person is responsible but! with their whole private fortune
  • Advantage: can be founded with small amount of capital

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LIMITED LIABILITY CORPORATION�KFT.

  • Operated by one person or a group with few members
  • „Silent Mates” (investors,)
  • Minimal capital is 3 million Forints ca. 7500 Euros
  • Founded by Corporation Contract with a lawyer
  • Only responsible with the capital
  • Advantage: only responsible with the capital not with the private fortune

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GENERAL PARTNERSHIP�KKT.

  • Founded by few people, ususally family members
  • With Corporation Contract where a lawyer registers the amount of money the family members separately gave in
  • All the members are responsible with their whpole private fortune proportionately

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SHARE CORPORATION�RT.

  • Founded by the shareholders, all of them give money or other property ( equipment, land, house, machines)
  • Closed share corporation (Zrt.):
    • min. 5 million Forints capital ca. 12.000 Euros
    • only a specific group of people can be shareholders
    • Szerencsejáték Zrt.
  • Open share corporation (Nyrt):
    • Min. 20 million Forints capital ca. 50.000 Euros
    • the shares can be bought by anyone on the stock market
    • only the founders are responsible
    • MOL Nyrt.

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THANK YOU FOR YOUR ATTENTION!