Hungary is going to modify its civil code by making significant changes to the corporate law which is likely to become effective from March 2014.
According to the amendments, new companies may be permitted to establish their own company guidelines (except where prohibited by law). New companies limited by shares by default will be incorporated as private companies and thereafter may only transform to public companies. Also new minimum registered capital requirements of HUF 3 million would be imposed on limited liability companies.
Also new minimum registered capital requirements of HUF 3 million would be imposed on limited liability companies.
To meet the new requirements existing limited liability companies with registered capital of less than HUF 3 million will have to increase their capital by March 2016 or when their act of foundation is first modified after March 2014, whichever is earlier and failure to meet the new requirements would result in a requirement to transform or dissolve the company.
