Writing in the British Chamber of Commerce's spring
newsletter, our Hungary tax and legal expert says involving your
partners will help mitigate issues that arise in capital.
The new Civil Code (Act V of 2013) requires all limited
liability companies to have a minimum registered capital of HUF
3,000,000. For companies founded with the previous minimum of HUF
500,000 applicable to the period from 1 September 2007 to 14 March
2014, the change implies an obligatory capital increase to the new
minimum amount until 15 March 2016 at the latest.
The increase is likely to create challenges to both smaller
entities because of shortage of funds and larger ones due to the
administrative burden involved in executing corporate changes.
However, it can be handled in several ways and provides companies
with opportunities to review their capital structures, remedy
negative equity positions or achieve thin capitalisation
optimisation.
