Whenever the basic data of your Hungarian company are changed, the new data must be registered officially, so all those interested can access up-to-date information in the company registry. The process is called company modification.
Which are the data that need official company modification?
1. Company seat and other premises
Your registered seat is where authorities will expect to find you, and they will expect you to act immediately on any messages sent there. Since your business may change and grow over time, it makes sense to have your company seat at an expert provider and have competent personnel at your seat at all times, whether your staff is on holiday or your company is between moves.
The address of your shop or office is also part of your registered company data. Whenever you move to a new office, this should be reported to the authorities – even if your seat remains the same.
2. Changing the share capital or the equity
In Hungary, the minimum share capital of an LLC is HUF 3 million (ca. EUR 10,000). While it can be spent on assets, it cannot be decreased. However, you may want to increase it for various reasons – and this should be registered. Changes to the shareholder equity should be reported likewise.
3. Change in ownership
When the company is sold to new owners, or one of the original owners is bought out, this must be registered. Reporting is also necessary if the owners remain the same but their share in the company changes.
4. Change in the person of the managing director
When a new managing director is appointed (a person authorized to sign contracts and make strategic decisions on behalf of the company), this must be registered.
+1 Adding new types of activities to your operation
Your company may perform activities and issue invoices only in areas it has previously signed up for. In case you want to expand your operation, you might need to register new activities. Some activities might require a separate license, for which you must apply separately before you add the activity to your company record.
Unlike the changes above, adding new activities to your operation does NOT require an official company modification! This can simply be done by your accountant. Discuss the details with them.
How do I request the company modification?
You must authorize a lawyer to handle your case and file the company modification request with the company registry. Considering the relevant paperwork, the procedure is almost as complex as company formation itself, as it requires various supporting documents. In one modification request, you can ask for any number of modifications, and the procedure takes 30 days at most.
With any issues concerning your company, your best aide is your accountant. Whenever you want to change anything, ask your accountant whether it has to be registered officially with a company modification.