The registry of sole proprietors will be transferred to the chambers of commerce

As of 1 January 2027, the task of maintaining the registry of sole proprietors will be transferred from the National Tax and Customs Administration to the Hungarian Chamber of Commerce and Industry. As a result, they will be the regional chambers operating under the supervision of the Hungarian Chamber of Commerce and Industry to whom sole proprietors will have to report the commencement, suspension, or continuation of their operations; the continuation of operations by heirs or a widow following the death of the sole proprietor; as well as the termination of the sole proprietorship.

Regional chambers will also take over certain administrative inspections from the tax authority: they will be responsible for verifying whether there are any grounds for disqualification regarding a sole proprietor (e.g. a final sentence to imprisonment for certain criminal offenses, or a ban on practicing a profession). If grounds for disqualification exist, the sole proprietor may not carry out its business activities. Regardless of this, government agencies will continue to have the authority to inspect sole proprietors, e.g. to verify that they have the necessary permits or qualifications to conduct their business.

The Hungarian Chamber of Commerce and Industry and the regional chambers of commerce act as administrative authorities when performing the licensing, registration, and inspection duties assigned to them by law; therefore, as a general rule, administrative litigation may be initiated against their decisions within 30 days of the publication of the decision. The chambers will remain responsible for providing sole proprietors with appropriate, consistent, and structured information about the rules and obligations affecting their activities, including whether their activities require a license, official authorization, or registration.

Currently, the National Tax and Customs Administration is still the body responsible for maintaining the registry, while the chambers of commerce merely assist sole proprietors by providing information. Accordingly, it is still the National Tax and Customs Administration that is required to notify the chambers about sole proprietors’ registration, changes to their data, and the suspension or continuation of a sole proprietorship. As of 1 January 2027, on the contrary, the chambers will be obliged to report these pieces of information to the tax authority.