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flag Hungary Hungary: Operating a Business

Setting Up a Company | Working Conditions | Cost of Labor | Social Partners

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability
Korlatolt felelosségû tarsasag (Kft) is a Private Limited Company
 
Minimum of HUF 500,000
No limitation.
 
Liability is limited to the amount contributed.
Részvény tarsasag (Rt) is a Public Limited Company
 
Minimum HUF 5 - 20 million
No limitation.
 
Liability is limited to the amount contributed.
Közkereseti tarsasag (Kft) is a general partnership
 
No minimum capital
No limitation.
 
Partners' liability is several and indefinite.
Betéti tarsasag (Bt) is a limited partnership
 
No minimum capital
Two types of partners: active partners (General Partner) and sleeping partners (Limited Partner).
 
Unlimited liability for at least one partner (General Partner). Unlimited liability for at least one sleeping partner (Limited Partner).
 
The Competent Organization
The Commercial Register.
 
Setting Up a Company Hungary Eastern Europe & Central Asia
Procedures (number) 4.0 6.3
Time (days) 4.0 16.3

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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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.

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Cost of Labor

Minimum Wage
65.500 HUF (262 EUR).
Average Wage
Average monthly gross earnings in Hungary is HUF 191,930 (USD 1,000).
Social contributions
Social Security Contributions Paid By Employers: Medical insurance 1950 HUF
social security 11%
pension insurance 18%
unemployment insurance 3%
training contribution 1,5%
Social Security Contributions Paid By Employees: Social security is paid by employees at the follow amounts: pension contribution: 8.5%, health care contribution: 4%, Unemployment contribution: 1%.

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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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Learn more about Operating a Business in Hungary on Globaltrade.net, the Directory for International Trade Services.
 

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Last Updates: January 2012