• Choose the name and the corporate form the business. Your name has to be unique and has to comply with some legal requirements, including being grammatically correct and precise, and it is advantageous to indicate also a reference to the business activity itself. Since there are many more requirements, we provide more explanation in private. Your corporate form can be a general partnership (GP.), limited partnership (LP.), limited company (Ltd.), or private-limited liability company (Llp.) which is nowadays the most popular. Regarding each corporate form, contact us for further explanation, since it is a key factor to your business.
• Indicate the registered seat, the members and their capital contribution, the executive director, and main area of business. It is important to know, that every member and executive director (you can name more executive directors) has to reside in Hungary OR have to indicate a delivery address in Hungary – for example the one of the attorney’s office, or of any representative residing in Hungary. You also have to indicate the natural persons’ tax authority identification numbers. Some corporate forms require minimum capital contribution: the Llp. form requires at least 3 million HUF capital, private Ltd. requires 5 million HUF, while the minimum base capital of the public Ltd. is 20 million HUF.
• Pay the necessary procedural duties and fees. These fees vary from zero through 50.000,-HUF to even 600.000,-HUF (European Ltd.). Ask your attorney for further explanation. Once these fees are paid, your registry process can begin.
• Sign the deed of foundation and other necessary documents. These documents have to be drafted and countersigned by your attorney of choice.
• As soon as the signature and countersigning is done, you can issue invoices and start your business. During the time your company is founded but not registered at the court of registry yet, the business operates as a pre-company. You are entitled to perform most of the actions as you when lawfully registered. The process is complete when te competent registry court issues the order of registration.

Remember, these are just some of the many things you have to be with attention to, there are many-many details to the foundation of a business.

To have corporate experts deal with your business, contact us and we make sure everything goes fast and smoothly according to the relevant laws, for an affordable price.

Next time we discuss what to do if you have an injury or a monetary claim against someone and he/she is not willing to perform.

First, a foreign citizen by the legal definition is someone that is not a citizen of the European Union and the EC Treaty, or any state of the same legal state.

Thus, citizens of the EU, the EC Treaty (e.g. Norway, Liechtenstein), Switzerland, individuals with dual citizenship of which at least one is citizenship of an EU nation or Hungarian citizenship, do not need approval from the competent government office.

Every other foreign ciziten (e.g. citizens of any Asian, American, African or Arabic state), the approval of the competent government office is required.

The process starts with hiring an attorney, since to complete the transatcion you will need several countersigned documents.

The authorization process starts with filling a form and filing it to the goverment office according to the location of the property. The countersigned/notarized copy of the purchaser’s passport, driving license, or hungarian ID card has to be attached to the form, along with the land registry title deed of the property (not more than 21 days old) and the pruchase and sale contract or pre-contract agreement of the parties.

You also have to file a so called moral certificate and pay a procedural duty fee of 50.000,-HUF.

Now the claim to acquire title of real estate is under evaluation. In case of a positive judgement (if the claim does not harm municipality or public interest (e.g. the client is not banned from entry and residence, or no arrest warrant has been issued)), – the whole procedure can last over 60 days – you can proceed with the contract and payment of the purchase price.

The purchase and sale contract has to be countersigned by an attorney and properly delivered to the land registry office. It is strongly advised to conclude a bilingual contract to avoid misunderstandings.

To ensure everything goes smoothly and by the laws, contact us and we make sure you get a bilingual contract and the representation you need, for an affordable price.

Next time we discuss how establish a business company in Hungary.

• Before moving in, take photos of the apartment, and make a list of the belongings found there. Unfortunately, many paid depostis are witheld by the landlords due to alleged damage to the property or to the belongings caused by the tenants. Be aware, that in case the allegations are true, your deposit can be – at least partially – witheld. But in case you can prove that you did no damage, you are entitled to your full deposit. With photo proof and using the proper legal way, you can force the landlord to return your deposit.
• During your stay, perform your obligations in a reasonable way. This includes paying your rent in due time – remember to always ask for a proof of receipt – , and report to your landlord in case anything broke or is out of order, even in case of minor damages. By law, the landlord is obligated to provide an apartment adequate for living (e.g. properly functioning heating system) –the tenant is obligated to take care of the condition and the minor repairs of the apartment (e.g. fixing a broken window).
• Abide the local laws and condominium policies. Unfortunately, in case you throw a party in the late hours, the police is entitled to fine you, and also your landlord could get into trouble. Try to precede this by either going out or keeping noise low.
• In case you may want to terminate the contract, call a lawyer. In case, by any reason, you decide to move, do not grab your things and walk away, especially in case you rent an apartment for a longer period. In case of an improperly issued, thus invalid termination, you may be forced to pay for several months more.
• Have the important documents translated. There are several cases you may need a translated version of a document what is considered important (e.g. allegedly contain a payment obligation, or a modification to your agreement, etc.). This way you can make sure you are not taken advantage of.

If you need assistance for anything above, contact us and we provide you with legal advice and help you with the process for an affordable price.

Next time we discuss what to do in case you may want to buy an apartment.

• Have a professional draft your rental agreement, do not use samples. Many people use samples they download from the web, but a sample is never the solution to your individual needs. It never fits your needs and the exact purpose of the parties.
• Do not automatically accept the contract handed to you, drafted by the landlord or the estate agent. Landlords and tenants often think they can be just as smart as a lawyer, and they can save money using a contract drafted by themselves, or using a sample provided by the estate agent. Remember, even having the best intentions to help, an estate agent is not a lawyer, thus he/she can not guarantee you the legal safety. Truth is, the legal fees of fixing something are at almost all times more than the amount that people think they save by cutting out legal fees.
• Never sign something that is not drafted in a language you understand. Unfortunately, we have experienced numerous occasions, where te main reason of the landlord-tenant dispute was, that the rental agreement was only drafted in Hungarian, thus the rights and obligations of the parties were anything but clear.
• Do not hesitate to tell your needs, you are not obligated to agree to something you would not like to. Sometimes it happened, that our clients reported they had „no choice” but to sign the agreement they were handed. Remember, you always have a choice, even walking away from the agreement is one, and it is way more favorable than committing yourself to a contract that is regardless of your interests.
• Be sure you can terminate the contract without many restrictions. In case things do not go as your liking, you are entitled to terminate the agreement by law. Although the parties may agree to restrictions regarding termination, these may not be disproportionate or unrealistic considering the parties’ relationship and the agreement itself.

Remember, these are just some of the many things you have to be with attention to, there are many-many details to an agreement.

To ensure your safety and that you will not be cornered in case of a legal dispute, contact us and we make sure you get a bilingual contract and the representation you need, for an affordable price.

Next time we discuss how to properly perform your obligations while renting an apartment, and what to do if you get in trouble with your landlord.