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flag Hungary Hungary: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Korlatolt felelossegu tarsasag (Kft) is a Private Limited Company
Number of partners: No limitation on the number of partners.
Capital (max/min): Minimum of HUF 500,000 (1,700 EUR)
Shareholders and liability: Liability is limited to the amount contributed.
Reszveny tarsasag (Rt) is a Public Limited Company
Number of partners: No limitation on the number of partners. There are two types of Rt: closed company limited by shares or Zrt (shares not available to the public) and Public company limited by shares or NyRt (shares listed on the stock exchange for the public)
Capital (max/min): HUF 5 million (17,000 EUR) for Zrt and HUF 20 million (68,000 EUR) for NyRt
Shareholders and liability: Liability is limited to the amount contributed.
Kozkereseti tarsasag (Kft) is a general partnership
Number of partners: No limitation on the number of partners.
Capital (max/min): No minimum capital
Shareholders and liability: Partners' liability is several and indefinite.
Beteti tarsasag (Bt) is a limited partnership
Number of partners: No limitation on the number of partners. Two types of partners: active partners (General Partner) and sleeping partners (Limited Partner).
Capital (max/min): No minimum capital
Shareholders and liability: Unlimited liability for General Partner.

Limited liability for the external partners (Limited Partner).

The Competent Organization
The Commercial Register.
 
Setting Up a Company Hungary Eastern Europe & Central Asia
Procedures (number) 4.0 6.0
Time (days) 5.0 14.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Hungary.
Trade Register, only in Hungarian.

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The Active Population in Figures

201120122013
Labor force 4,261,0004,391,0004,263,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -50.10%50.70%
Men activity rate 58.80%58.40%58.40%
Women activity rate 42.50%43.80%43.80%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 22.0%
Education 8.0%
Construction 8.0%
Real Estate, Renting and Business Activities 7.9%
Transport and Storage 7.4%
Health and Social Work 6.4%
Agriculture, forestry and fishing 4.4%
Hotels and Restaurants 4.1%
Professional, scientific and technical activities 3.8%
Administrative and support service activities 2.7%
Information and communication 2.5%
Financial and insurance activities 2.4%
Arts, entertainment and recreation 1.7%
Electricity, Gas and Water Supply 1.5%
Mining and Quarrying 0.2%

Source: International Labor Organization (ILO)

 
For Further Statistics
Labor administration and national statistics office.
For Further Information About the Labor Market
Magyarorszag, Hungary website
Public Employment service

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Working Conditions

Legal Weekly Duration
40 hours per week
Retirement Age
20 years in service and minimum 62 years.
Working Contracts
Full- and part-time contracts, assignment contracts, outsourcing contracts. More information on Just Landed website.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
HUF 78,000 per month (source: ILO, 2011).
Average Wage
Average monthly gross earnings in Hungary is HUF 191,930 (USD 1,000).
Social contributions
Social Security Contributions Paid By Employers: 28.5%
Social Security Contributions Paid By Employees: 18.5%

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Social Partners

Social Dialogue and Involvement of Social Partners
The law allows unions to conduct their activities without interference, and the government protects this right in practice. Collective bargaining is protected by law, and it was freely practiced. Approximately 40 percent of the workforce is covered by collective bargaining agreements (almost 3,000 collective bargaining agreements existed). Workers have the right to strike, and workers exercise this right in practice.
Unions
Cooperation Forum of Unions
National Organization of Hungarian Unions
Unionization Rate
40%
Labor Regulation Bodies
Ministry of Labor

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Last Updates: October 2014