When forming a Hungarian limited liability company (kft.), the founders should settle ownership, decision-making and financing before focusing on filing speed. Preparing these points makes the legal consultation more useful.
1. Members and ownership
Identify the members, their contributions and intended ownership shares. Where there are several members, consider how major decisions will be taken and what happens if one wishes to leave.
2. Capital and contributions
Under the Hungarian Civil Code, a kft. must have at least HUF 3 million in registered capital. Contributions may be in cash or in kind. Discuss timing of payment and the valuation of non-cash contributions, not just the nominal amount.
3. Management and representation
Decide who will act as managing director and how the company will be represented. A member's position and a director's duties are different. Signing rules and internal approval processes should reflect how the business will actually operate.
4. Name, office and activities
Check the proposed company name, the lawful use of the registered office and the intended business activities. Regulated activities may require additional permits or qualifications.
5. Preparation checklist
- Identification details for members and directors.
- Documents supporting the use of the registered office.
- Proposed contributions and ownership shares.
- Planned activities and contact information.
The precise documents depend on the founders' circumstances. Company registration is electronic and legal representation is mandatory in the registration procedure.
Is a standard form enough?
A standard form can be suitable for a simple structure, but it cannot resolve every agreement among members. Bespoke provisions may be needed for different investments, voting arrangements or exits. See the separate article on when an attorney is needed and the company law practice page.
Sources: Hungarian Civil Code; Hungary's company registration guide.
This article is general information, not case-specific legal advice. Laws and procedural deadlines may change.