Information On The Mandatory Company Modification From Colling Ltd

  • 29 Jan 2013 8:00 AM
Information On The Mandatory Company Modification From Colling Ltd
We hereby inform you that in accordance with the change of Act V of 2006 on Public company Information, Company Registration and Winding-up Proceedings (hereinafter referred to as: Ctv.) entry into force on the 1st of March, 2012, not only new companies shall meet new requirements in the course of the registration procedure, but also existing companies will have to modify their registered data, respectively, notify the Court of Registry on some further information.

The requested information shall be provided at the time when any change in their particulars on file in the companies register takes place for the first time, in any case by 1st of February, 2013 at the latest.

The mandatory modification shall affect:

a) The companies of which names or concise names are not in accordance with the relevant provisions of Ctv. shall modify their names. [Section 129 (1) of Ctv.] The company name shall be clearly different from the official and colloquial name of public authorities and administrative bodies [Section 3 (5) of Ctv.], respectively, the phrase of „state” or „national” shall be used in the company name only if the state has direct or, or by way of its bodies, indirect majority in the company, or the company is in inalienable state ownership as described in specific other legislation [Section 4 (3) of Ctv.].

b) The attachment of the statements certifying the entitlement to use the premises of the registered office, business establishment and branch shall be mandatory. Unless previously attached, the company shall be obliged to provide the above statement for the Court of Registry. [Section 129 (2) of Ctv.] The real estate registration numbers of the premises in which the registered office, business establishment or branch are situated shall be required as well.

c) The Court of Registry shall be notified on the tax identification number and the date of birth of the representatives (e. g. managing director, general director, etc.) and members (shareholders) of the company. In the case of non-resident private individuals and bodies listed in the companies register, if they failed to register with the state tax authority, the tax identification number of the non resident person or body established by the authority where registered for tax purposes shall be indicated. If the non-resident person does not have an identification number for taxes and other similar charges established by the state in which he/she/it is resident, this shall be indicated. It might be important to know, that the tax identification number of members is not shown in the register of companies.

d) If there is a non-resident legal person or an unincorporated business association, or a foreign natural person in the company, who/which does not have a residence in Hungary, an agent for service of process shall be designated. The agent for service of process may be an organization or a natural person with a registered office or permanent residence in Hungary, respectively.

The company’s members (shareholders) and executive officers, and members of the supervisory board may not function as agents for service of process. The agent’s official appointment and his declaration of acceptance of said authorization drawn up in a private document representing conclusive evidence or in an authentic instrument shall also be enclosed with the application for registration.

Of course, any other changes might be registered as well, but the above amendements shall be done until the 1st of February, 2013 at the latest.

Those companies which already meet the above requirements have nothing to do.

It is also important that the registration of changes pertaining solely to the mandatory submission of the above documents may be affected without having to pay any registration fees and publication charges.

In case the company fails to fulfil the above obligations a judicial oversight proceeding shall be conducted by the Court of Registry in order to remedy the lawful legal status of the company. Throughout this procedure a fine of between 100,000 and 10 million forints might be imposed, payable by the company, or by the executive officer. The Court of Registry may impose the measure described above repeatedly. Where the Court of Registry considers that not even further actions are likely to be effective in restoring lawful operations, it shall declare the company affected wound up.

Source: Colling Accounting & Consulting Kft.

Address: 1138 Budapest, Váci út 141.
Danubius II. Office Building, III. floor
(Enter: Babér street)
Phone: +36 1 452 6900
Fax: +36 1 452 6910

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