In Hungary, data of any company are registered with the Company Registry, and it is the owner’s or the executive’s responsibility to keep those data up to date. Some changes can be simply reported, but changes to core data require a more complex procedure called company modification. Learn what these are, and how to handle the procedure!
Company modification keeps public data up to date
Company data are kept by the Company Registry, and they are publicly available online. Whenever there is a change to company data, the Registry must be updated, which means you must submit an official notice of the change with the help of a lawyer within 30 days after the change. This way your (potential) clients can always check if your business is legitimate, or if they are dealing with a person entitled to represent your company.
Company modification has legal costs, while the lawyer involved should also be compensated for their work.
Data relevant for company modification
As a rule of thumb, company data that let authorities and potential partners or clients identify, verify, and contact your Hungarian company should be updated with the Company Registry through a lawyer. Such data include:
- Company name: the same rules apply as when you chose a first name for your company.
- Registered seat: the main address where authorities expect to contact your Hungarian company.
- Locations: the address of the sites of the company, including offices, shops, and warehouses (this is a complex issue, ask for advisory).
- Online locations: website, email address
- Main activity
- Owners and representatives, including changes to the personal data of these persons (such as name or permanent address), or changes to the share ratio or voting rights
Other data that must be reported
If data are more relevant for administrative purposes, such as tracking activities, there is a chance they do not need a lawyer to perform company modification on your behalf. Such data include:
- Additional activities: if you want to add new activities or remove existing ones, your accountant can report this to the Tax Authority, and the Company Registry will be updated automatically.
- New bank accounts: when you open a new corporate bank account for your Hungarian company, the bank is obligated to report this within 8 days, and the Company Registry will be updated accordingly. However, make sure to let your Hungarian accountant know too.
Company modification procedure
When the core data of a company are modified, and it warrants a company modification, the majority of the owners must be in agreement. If you are a sole owner of your Hungarian company, which is often the case for small or medium-sized companies, of course you can make such decisions on your own. The required majority (simple majority, three-thirds, or unanimous decision) depends on the data to be modified. Once the decision is final, a document verifying it must be sent to your lawyer, who must submit it to the Company Registry within 30 days after the decision is made.
Company modification with Helpers
Whether you need to change your company name, your registered seat, or any other core data of your Hungarian company, our trusted lawyer can take care of the company modification procedure for you. Not sure if you need company modification? Ask our colleagues, and we will help you figure it out! The Helpers Team has more than 15 years of experience with business assistance in Hungary, and we are confident we can provide the solutions you need