In the course of the establishment companies, future exclusive holders have to make many important decisions built up on each other. At first, they have to choose between forms of economic activities then define the way of putting in funds the company needs, also decide about the name of the company, place of business and manager.

 

Forms of companies

 

The form of prosecution of an economic activity is possible, either within the confines of some of the company frames, or as private entrepreneur. In pursuance of the establishment one needs to choose a form of company, which suites the most to the proposed economic activity. So that if cooperation among members and personal presence are priorities, and also the principles of the prosecution, then limited partnership form is suggested. If the prosecution calls for not only personal cooperation, but involving funds as well, Ltd. is suggested.

While choosing a company form, it is a major condition to consider the risks of business on the market, so that if entering the market means high equity requirements inherently, then forming a close company might be also possible, moreover certain financial and investment activities are only to be done in the form of shareholding group.

 

 

Ltd., the popular company form

 

Ever since the modification of the Act IV of 2006 on Business Associations (Companies Act) came into effect in September of 2007, chosen forms of establishment are mostly Ltd.’s (private limited-liability company).

In the case of Ltd., there are chances of establishment such as one-man or joint business forms. In both cases, the minimum amount of fund is 500.000 HUF. Establishing a Ltd. by contract of co-operation means that each member has to give free run of a minimum of 50% of the monetary contribution. In the case of a one-man company type Ltd., it is enough to pay 100.000 HUF into the Ltd.'s account at the establishment, and the rest of the monetary contribution needs to be paid in, in one year's time, counting from the exact date of the establishment.

 

The company's subscribed capital can be cash contribution and in-kind contribution as well. It is recommended to choose in-kind contribution, if it is about using such instruments or appliances that are directly necessary for the activity. The value of in-kind contribution can be also accepted by the members themselves, but in such case, they have to bear record to what led them in pursuance of appointing it. A market comparison assay makes for certification, as for motor vehicles, it is the TAX bill, or the check from the in-kind contribution's purchase. The in-kind contribution's value can be determined by the auditor, if it is so, members no longer have to.

 

 

 

What should be the business name that you recognise us from?

 

The business name must contain the designation of the chosen form of business, as well as the subject-heading. So thus, besides the form of business, determining the business name is also an important decision, because that is what our business clients are going to identify.

The business name must differ from all other registered Hungarian business names unambiguously, by at least 3 characters. Numbers written next to the business name are not the most perfect distinction for ordinary beholders. The business name stands of the subject-heading and of the reference for business activities. The subject-heading can be any Hungarian, foreign word or acronym, or many short words as well. (e.g. Web-Sky Consulting)

 

Variations for business-name can be inspected for free at www.e-cegjegyzek.hu.

 

 

Place of business selection

 

Selecting the place of business is ranked among the most essential footings. In behalf of genuineness of place of business, in the course of registration, it has to be justified by charter, that it possesses some kind of a legal ground, therefore the property can be marked as place of business or park, in the property register.

 

Also, possession of the legal ground has to be justified by place of business usage agreement, hire contract, legal status of owner, or place of business-provision contract by attorney. That is why it is suggested to come up with an exact place of business resolution, also with topographical number as far as possible.

 

If the venture has a park settlement, in the matter of the park, it is suggested, that the business, or owner of business has a park-usage charter, because this is the only full-proof that places the park into the register.

 

 

Assigning activity

 

Determining business activities goes by the TEAOR '08 bill (Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2). Business must have a major activity, but other activities can be also involved. It is suggested to mark only those activities that are done effectively, since tax authority action is based on the number of business activities, so theoretically there is a greater chance for inspections for those businesses that appoints 30-40 activities. It is important to mention, that later in time, activities can be modified without any duties, therefore, as a matter of fact, it is not even necessary to appoint that many activities.

 

Allocating manager's character is also one of the significant decisions of the foundation members. It is proposed to appoint a person, who has the required professional and economic cognitions and knowledge, or someone who is willing to supply them, since without the tax, vice president, power of representation, organization, furthermore conclusion contract cognitions business will have to face high economic risks.

 

Not only one, but many managers can be appointed. In a case like this, it needs to be cleared, who is authorized to sign, or clear if there is a chance for collective power of representation.

 

 

Those who can never become managing director:

 

·        condemned to imprisonment by final judgement for committing felony, until derogatory law aftermaths attached to record are in effect.

·        banned from executive activities by final judgement, until interdict is in effect.

·        banned from some other occupation by final judgement, therefore can not do any managing director activities in any business, until judgement is in effect.

·        banned from being an managing director, for two years by final judgement, through the cancellation of an economic company by liquidation proceedings, also considering in term position, which starts at least one year before the cancellations exact date.

 

Managing director comes into existence by approval of the concerned person. Managing directors are able to suffer re-election, also may happen to go through repeal done by major economic organization, without any bond of justification.

 

As if you happen to have furthermore questions, please ask for online help services: info@onlineceg.hu