1. THE NATURE OF COMPANIES IN HUNGARY , SHAREHOLDERS PROTECTED
BY LIMITED LIABILITY
1.1 Corporate forms in Hungary
The Hungarian Company Act determines five different corporate
forms that may serve for investors as a basis to carry out business
activity in Hungary. All of these forms can exclusively be
established and operated by foreign owners and management:
- limited liability company
- company limited by shares (public or
private)
- European company limited by
shares
- joint enterprise
- limited partnership
- unlimited partnership.
These corporate forms enable the foreign investors to carry out
all kinds of business activities, provided that the necessary
licenses have been granted (e.g.: banking), if such license is a
precondition of the operation. The Hungarian laws may prescribe
that certain business activities can exclusively be carried out in
particular corporate forms. Thus, for example, banks can only be
founded and operated as a company
