Corporate proceeding changes from 1 August 2022

The main amendments to the decree of the Ministry of Justice on certain aspects of the company registration procedure and the register of companies entered into force on 1 August 2022, while certain provisions enter into force on 1 September 2022. The new rules became necessary to comply with Directive (EU) 2017/1132 of the European Parliament and of the Council.

According to the modifications, a company may also be established online, and in this case, a limited liability company may also prepare its articles of association by the proper filling of the sample. The amended decree specifies the definition of the formation, which means the entire process of setting up a company, including the drafting of the company's articles of association and all the measures necessary for its registration in the Company Register. It is also clarified that a branch of a foreign enterprise in Hungary is not ‘established’ but ‘registered’, and such registration means the process and all necessary measures by means of which the documents and particulars relating to the newly established branch are registered in the Company Register and published (including the preparation of the company's articles of association).

It is also included in the new rules that on the EU’s E-Justice portal, several details of a limited liability company, a private or public company limited by shares and a European company limited by shares are available free of charge, for instance the company name, registered seat, company registration number and EUID.