Despite some improvements resulting from recent changes to Hungary’s insolvency laws, the system remains deeply flawed, the head of the Hungarian Association of Insolvency Practitioners & Asset Controllers told a recent conference, Napi Gazdaság reports.
According to Ferenc Somogyi, Hungary continues to lead the world in terms of company liquidations, many of which are so disorderly they constitute a “farce.”
Somogyi said that further reforms of laws and regulations covering liquidations are needed, especially considering the vastly more draconian approach taken against the managers of such companies in Western Europe.
Before the laws can be corrected, Hungary has to take a look at whether it really wants to develop industries, or just be colonised. The risks for setting up a company are huge, and the current laws, APR, tax rules, swinge-ing tax wedge are all out of step with fostering an entrepreneurial culture… All of this has to be addressed, not just 1 piece of the law.
Sadly the country is in firefighting mode and only knows about bucket-brigades; discussing whether we use plastic or metal straps for those buckets I guess passes the time… but doesn’t do much else.
Start a business in magyarorszag?With 50% tax rates? Really? Really? APEH breathing down your neck? Really?