Starting next month, a new company can be registered in Hungary within one hour, State Secretary Gábor Gadó has announced. From July 1, paper-based registration will no longer be available, and the procedure will be performed electronically at the company court.
Gadó said the reason the new procedures are faster is that the majority of legal checks are now performed by a lawyer or a notary, leaving the court with considerably fewer tasks beyond checking that the required documents and an electronic signature by the legal representative are attached.
Gadó also said the fee for the new procedure will be Ft 15,000 (€62) as opposed to the current fee of Ft 100,000 for paper-based registration.
According to Márton Hegedűs, development director of Microsec Számítástechnikai Fejlesztő Kft, the company responsible for the electronic company registry system, paper-based registration usually took 15 to 25 working days, including mailing of necessary documentation.
There is an option to use electronic registration in place currently, but it still takes around 15 days, as the only difference is that e-mail is used instead of traditional mail.
The new system to be used from July 1 will collect the necessary data from electronic sources, eliminating the need for manual data entry. Clerks will also be given the right to make decisions on whether to register companies.
The intelligent forms to be used in electronic company registration can be filled in with any form-filling software available on the market, such as the free software available for download from the Ministry of Justice website.
Hegedűs said the number of requests submitted electronically grew from 1,500 to 15,000 between September and May.
This is not EXACTLY great news. HU has still not dealt with the complexity of winding up businesses but rather dealt yet another “disadvantage” to those that have already invested (the 100K+) to start up.
The previous pricing at least helped those who sought to save the costs (and time) involved in shutting down a company by selling such on. It appears that cynically, HU intends to continue to “fool” foreigners into investing rather than focus on what it takes to make SMEs flourish by reducing the costs & risks associated with failure which it could do by:-
-Simplifying the process for winding up a company and
-introducing a means to take a company dormant.
Given the cost of HUF, the cash strapped nature of the local market (few people (or town councils even) have Disposable Income), the lack of support for those that already “made” the investment here, and more competitiveness of the neighouring countries – makes me wonder how this was ever a national priority, and how the legislators could fail to couple such improvements with other, bigger business issues?
That’s cool that people can take the home loans and this opens new chances.