The limited liability company (kft.) is still the most popular form of business for those who would like to start a new business: data from the Central Statistical Office according to Currently, 1,600-2,000 new companies start operating in Hungary every month, and for these, ltd. the final majority. In March, for example, 1,850 new social enterprises were registered across the country, of which 1,797 started as limited liability companies.
Ltd. its popularity as a form of company is no accident: as can be seen from the name “limited liability”, the owners are only responsible for the obligations of the company up to the share capital, in contrast to the limited partnership, where, where appropriate, the burden of private assets must also be met. The requirements for the share capital are not very strict: for many years, it has had to be at least HUF 3 million, but only 30 percent of this – HUF 900,000 – has to be raised in cash, and moreover, it is not mandatory at the time of start-up.
The procedure has not changed, the costs are relatively low
Ltd. its establishment – with a simplified procedure – is tax- and publication-free, in addition to the share capital, the lawyer’s fee, the cost of preparing the company stamp, and the fee for the title deed of the property serving as the headquarters must be considered. Of the latter three items, the lawyer’s fee accounts for the largest share – this can typically be between HUF 50 and HUF 150 thousand gross – while the stamp and property sheet together, it costs approximately HUF 15,000. It is also worth counting the chamber membership fee, which amounts to HUF 5,000, among the costs.
The procedure for setting up a limited liability company is unchanged compared to before, and consists of the following steps:
- preparation of a founding deed or company contract, with the assistance of a lawyer;
- choosing a company name, booking it at the company court;
- selection of headquarters, site;
- registration of the company at the commercial court, simultaneously applying for a tax number;
- opening a bank account and then reporting a to NAV.
The company’s headquarters and premises can be its own or rented property, and the help of headquarters service providers can also be used. In the latter two cases, by definition, additional costs must be taken into account. The company must also elect a managing director, but it is important to know that a limited company can be founded by one person – in this case, instead of the partnership agreement, a founding document must be prepared. In addition to opening a bank account, it is also worth choosing an online invoicing program.
In the case of a simplified procedure, the company can be registered quickly, within 1-3 working days – assuming that all the necessary documents are available.
What about opening a bank account?
As with all social enterprises, the rule applies to limited liability companies that within 15 days of company registration it is mandatory open a cash flow accountwith a financial service provider based in Hungary.
The following documents are required to open an account:
- copy of signature address,
- company court order
- memorandum of association or partnership agreement,
- NAV registration form with the tax number (this is automatically forwarded by the bank to the tax authority),
- personal documents of those entitled to sign, together with their address card.
Opening a bank account can be started online with most financial service providers, but in order to conclude the contract, you usually have to go to a bank branch, so personal administration cannot be avoided. An exception to the latter rule is, for example, the first Hungarian neobank, BinX, where the process can be completed in a short time with an NFC-capable smartphone with an internet connection, without personal assistance. However, as a newly founded company, in order to open a BinX account, it is necessary to present the e-file with the ES3 extension, which was submitted to the company court by the new customer when the company was registered.
How to choose a business bank account?
As a start-up, the costs of maintaining the company’s bank account are of particular importance. From the point of view of the development of costs, the monthly fee for account management is obviously also of great importance, but it is also worth paying special attention to the non-bank electronic for the costs of transfers too. The annual (monthly in some places) fee of the bank card is also not to be neglected. What is very important, however, is that in many cases, banks apply temporary discounts for half a year or a year for start-up companies: in these cases, it is also worth looking into how the estimated costs may develop when the discount period ends. (Of course, in the ideal case, the company will move up from the package ideal for start-ups within a year or two anyway.)
According to the data of the business bank account calculator available on the BiztosDöntés.hu website, banks are preparing more and more favorable offers for start-ups: account management is free of charge for several account packages, and one-time credit offers are also spreading for these schemes.
THE at BinX four business account package is available. With the BinX-S package, which is primarily intended for start-ups, account opening and account management are unconditionally free of charge, while sending money between BinX customers is also free. The fee for electronic transfers outside of BinX is already very favorable for this package – 0.25 percent, but no more than HUF 10,000 per transaction. Account opening and account management are also free of charge with the BinX Pro package, while the fee for transfers outside of BinX is 0.15 percent, but no more than HUF 10,000. Free account management with this package requires the customer to have the #profi package of Számlázz.hu, and to connect the BinX and Számlázz.hu accounts. The BinX Pro package also includes the Számlázz.hu Premium card free of charge. As for the other two packages, with BinX-M, the fee for transfers outside BinX is 0.2 percent, but a maximum of HUF 10,000, and the package fee is HUF 2,990 per month. The monthly package fee for the BinX-L package is HUF 9,990, but for transfers outside of BinX, a fee of 0.15 percent – also a maximum of HUF 10,000 – is charged. It is important that no time limit has been defined for BinX’s packages, so you can always count on the specified conditions.
The at MBH Bank The monthly fee of the Lépték GO service package, which is also recommended for start-ups, will be refunded for 12 months, while the BUPA Iránytű digital financial planning service can also be used at a discount. In addition, the financial institution offers discounts on bank card fees and the use of electronic channels, while the fee for all electronic and SEPA transfers is HUF zero – in addition to the transaction fee.
THE Granite Bank Entrepreneur Basic Account 2 with the package also recommended for start-ups, the account opening and account management fees are HUF zero, while the use of netbank and telebank is also free of charge. The first five domestic electronic transfers per month in the package are transaction commission-free.
The Erste new customers with a maximum operating history of six months can choose the S(tart) account package. Account management is free of charge in the package, and in the first 12 months – in addition to the transaction fee – electronic transfers are also free of charge. In addition, the issuance fee is waived for an electronic bank card, while the online and mobile banking and corporate telebanking services can also be used free of charge.
THE MagNet Bank With the MagNet Mini account package, in exchange for the HUF 700 monthly account management fee, the net banking and mobile banking service fees are HUF zero, while the first five domestic ad hoc and regular HUF transfer transactions initiated via electronic channels are free of bank fees.
The at OTP Bank when opening an account online, the entire monthly account management fee is now waived for 12 months. In addition, there is a credit promotion at the financial institution until June 30: HUF 40,000 can be paid for opening an account, and another HUF 100,000 for active account use, if the required conditions are met. For start-ups, OTP Bank recommends the Sprint account package, with which transfers to NAV and the first two transfers per month are free of charge, in addition to the transaction fee. The eBIZ PRO invoicing service can be requested free of charge for the package, as well as the current annual fee of HUF zero for a Mastercard Unembossed bank card.
The UniCredit Bank With FixPont’s account package, account management can be free of charge for 12 or even 24 months, while a one-time credit of HUF 60,000 can also be granted when the conditions are met.
The article is part of the sponsored content collaboration between the G7 and Biztos Döntés.
