How to Reserve a Company Name in Hungary
How to Reserve a Company Name in HungaryUpdated on Monday 13th March 2017
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Your company name is very important because it will serve as your company’s identity. All transactions entered into shall be in the company’s name, as well as all rights and obligations. That is why it is important you reserve a company name in Hungary. All businessmen who wish to establish a company in the country must comply with this requirement. The reservation of the company name can be done at the Court of Registration. Our Hungarian lawyers can assist you with this process.
Types of companies in Hungary
The Hungarian Companies Act requires that the company name must contain the type of business organization formed. Under the law, the types of companies in Hungary are unlimited partnerships, limited partnerships, limited liability companies, and company limited by shares. For general partnerships, the abbreviation Kkt must be included while in limited partnerships, bt is required. For private limited liability companies, the name must have Kft in it while public and private limited companies must contain the letters Rt. If the business is non-profit, the name must contain such designation. Our law firm in Hungary can provide you with information on which abbreviation to use.
Reservation of company name in Hungary
Application for reservation of company name in Hungary can be done personally or electronically at the Court of Registration. Upon receipt, the registry will take about one day to check if there is an existing company with the same name, if there is another company that has reserved the same name, or if there is a pending registration of a company under the same name. If all these are cleared, the registry enters the name into the Registers of Official firm records and issues a resolution reserving the company name. The name reserved shall be valid for sixty days and is also entered into the Electronic Register of Corporate names. During the sixty day period, no other application for registration with the same name shall be entertained. Our Hungarian law firm has assisted many clients in having their company name reserved.
Legal significance of company name in Hungary
The main law governing corporations in Hungary is the Companies Act. The law requires that all business entities must have a company name in order to do business in the country. The company has its own legal personality and conducts business in its own name. Even those businesses which do not have legal personality can still acquire rights and obligations through their names. When reserving a company name in Hungary, the name must appear in the articles of association, deed of formation, and the corporate statutes. Our attorneys in Hungary can help you prepare these documents.
For more information on reserving a company name, just get in touch with our Hungarian lawyers. They can help you simplify the process.