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Corporate law

Company forms in Hungary

In Hungary, the types of business associations and other entities used for business operations are regulated in statutes and one may only choose from the regulated entities when considering investment in Hungary.

Company set-up in Hungary

In order to establish a Hungarian company, it needs to be registered with the Hungarian Court of Registration. The registration process requires the involvement of a lawyer who countersigns the corporate documents and files the electronic application for registration.

Capital injection methods

The shareholders of a limited liability company (“LLC” or “Company”) often have to dip into their own pockets to fund their business until it becomes profitable. When shareholders of an LLC put up their own money to help the Company stay in business, the following capital injection methods can be considered in Hungary.

Merger and demerger of companies

Under Hungarian corporate law, companies may transform into another company form or merge with each other, as well they may resolve to demerge into separate entities.

Voluntary liquidation

Voluntary liquidation is a procedure when the shareholders decide to dissolve the company for any reason. Under the laws of Hungary, the following two options are available to dissolve a company voluntarily, provided that the assets of the company exceed its debts and it is able to meet its liabilities.

HR matters

Labour law in Hungary

The followings are the key statutory elements of an employment relationship. The related conditions need to be fulfilled throughout the whole employment relationship.

Employment agreements in Hungary

Employment in Hungary is regulated in detail by the Hungarian Labour Code. Deviation from the rules of the statute is generally allowed for the benefit of the employee and only in writing.

Posting of Hungarian employees abroad

In connection with the amendment of the Labor Code last summer, in the previous months a lot was said about the changes in the rules of posting employees abroad.

Termination of employment relationships

The following table summarizes the general Hungarian rules of terminations initiated by the employer. Please note that special circumstances (e.g. pregnancy, age nearing retirement, duration of trial period) may invoke the application of further and special rules to the termination.


GDPR compliance in Hungary

On 25 May 2018, the General Data Protection Regulation (GDPR) entered into force in all EU Member States. By this date, all data controllers who control personal data of European Union citizens were required to review their data controlling activity and to adjust their processes, regulations, safeguards to the requirements of the GDPR.