A draft has been prepared to enable Hungarians to declare insolvency as private individuals and the law may come in force next year, daily Nepszabadsag reported on Thursday.
The planned legislation is targeted at middle-class families that are unable to pay their debts. The recently-finalised text refers to “debt settlement procedure” because private insolvency would be “stigmatising,” Deputy Minister of Justice Gabor Gado told the paper.
The possibility to declare insolvency for individuals is planned to be offered to those who have assets but are without a criminal record. It can be declared once every ten years and the debt settlement procedure may last for five years, Gado said.
The draft will be submitted to the government in April and it will go before parliament after that, which means the legislation may be introduced next year, he added.
Is there any progress or even a thought about fixing the company bankruptcy rules? Currently, these add to the risk of starting up something speculative. To go bankrupt prevents one from starting a new business for 3 to 5 years. Further, there are no laws allowing one to take a company dormant – critical during a downturn; while the cost of winding up (the alternative to going dormant) is 500K HUF.
Let’s face it, Hungarians are good at getting a crack at the property of others… Also good at lovemaking and the fine arts, etc. However, they are definitely NOT good at matters of business and macro-economics.
After all, the country’s top B-school was known for decades as “Karl Marx University.” Need we say more?
BTW, anyone looking to incorporate, please do it in the State of Delaware, USA. It cost USD $100 to set a company there (LLC or C-Corp), and there is zero intervention from the state government as to what you do with it once you get it. You can have the company chartered inside of 24 hours if there is a rush. In other words — it is not a “privilege” to start up and run a company in Delaware, USA, as apparently it is in quasi-feudalistic Hungary. Plus, they have some of the best pro-copmany statutes on the books.
@Fantron, etal. Beware re setting up in DE (Delaware), while good if you do not hold a US passport, if you are a US passport holder, this opens you up to to double your FICA.
Also DE has become a red flag; better to open in WA (Washington State).
If you are thinking of doing business here, be very careful. The laws in general are NOT in your favour – the country appears to be set up to dissuade business, punish those that try, and separate you from your capital. Even though it claims to be progressing to cutting bureacracy, it’s lip service.
Which country are you talking about, Rolrox? Hungary?
You see, in Hungary the main reason anyone sets up a company is NOT to pay various taxes, like payroll taxes. Or pay only the statutory minimums. If your only reason and rationale to set up or not to set up a for-profit company is NOT to pay payroll taxes (like FICA), you really should not be attempting to set up a company in the first place. Or if you still do, do so in Zimbabwe or the PRNK.
BTW, if your company employs an employee, they have to pay the company-side of payrol taxes into the SS system. And as an emloyee, you pay the same based on your salary/wages. Same thing in Hunagary. Same thing in the USA. If you really do not want to pay anything, or close to it, set up shop in the Caymans.
In the USA, you can set up a company for under $200, either an LLC or C-Corp. I would guess blindly than in “pro-business” Europe, this would cost more. Let’s see…. USD $200 is app. 140 Euro. Where in Europe can you set up a company and run it for one year for that amount money, Rolrox?
Delaware has an excellent reputation, which is why the F-500 companies are domiciled there. And not in Washington State. ‘Bad reputation’ may be for FL and NV domiciles, let’s not confuse these with DE.
Of all the wonderful parts of the world — the Americas, Asia, Oceania — setting up and running a business has got to be the toughest in Europe. I am not knowledgeable enough to compare biz conditions between EU and Africa, however.