Hungarian government to simplify the establishment of foreign-owned companies
- QT Advisory
- Apr 10, 2024
- 1 min read
By revising company establishment regulations, the government seeks to streamline procedures.
To bolster economic growth, the Government has charged the Ministry of National Economy, in collaboration with the Ministry of Justice and the Ministry of Finance, to pinpoint the challenges hindering business establishment in Hungary.
The evolving economic landscape has witnessed many foreign investors from third countries establishing businesses in Hungary. However, their access to the company formation process is restricted, primarily due to language barriers, as it currently relies solely on Hungarian language contracts.
To address this issue, the Ministry plans to implement the following steps:
Publish the English versions of model contracts applicable to foreign investors from third countries, enabling unrestricted one-day company formation.
A uniform English-language prospectus outlining the acceptability and utility of foreign documents in the incorporation process will be published. These initiatives will significantly alleviate administrative burdens in the future.
Introduce streamlined company procedures, such as simplified registration for limited liability companies. Allow for currency choice (HUF/EUR/Dollar) in model contracts, aligning with income currency and easing the burden on startups.
Relevant regulations and legislative amendments are currently under development. The Ministry anticipates that the reduction of administrative burdens and streamlining of procedures will substantially enhance competitiveness and bolster the attractiveness of the business environment in Hungary.
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