Attention: KFT owners
Hungarian limited liability company owners shall pay attention to obligatory share capital increase. According to a 2-years-ago passed bill KFT minimum share capital was set to HUF 3,000,000 from the former HUF 500,000. Accordingly since 15 March 2014 newly established KFTs need to have minimum HUF 3 million share capital. Nevertheless owners of limited liability companies formed earlier had the possibility to provide only HUF 500,000 and so they might still operate with this lower amount.
The passed bill makes it obligatory to all KFTs to arrange for at least the new minimum amount of share capital. At the same time the bill defined a temporary period to allow company owners to prepare. Originally the share capital increase was to be completed by 15 March 2016, but that deadline was put off by another year.
The temporary period ends on 15 March 2017 and from that date on all KFTs have to have HUF 3,000,000 share capital.
Until this deadline all KFTs which has less than HUF 3 million share capital shall:
- arrange for increasing their share capital to HUF 3,000,000
- transform into unlimited liability company without prescribed minimum share capital
- decide on dissolution of the company
Our clients are kindly asked to check their company if it meets the minimum share capital requirements. If yes, then there’s no further action needed. If no, then please contact your lawyers and arrange for increasing the share capital. We are at our clients service with possible share capital increase methods.
Articles of association shall be amended by 15 March 2017. Lawyers shall submit the changed incorporation documents to the court of companies by latest 14 April 2017.