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Jurisdictional Updates 12-14-21

Hungary – Steps to Remain in Good Compliance and Avoid Insolvency or Bankruptcy

Companies with a permanent business in the Republic of Hungary should evaluate the following criteria to determine if capital measures are required to remain in good compliance and avoid insolvency or bankruptcy:

  • The company’s equity falls below the mandatory registered capital amount (HUF 3,000,000 for Kft and HUF 5,000,000) for two complete consecutive business years.
  • The company’s equity decreases to half of its registered capital due to losses, (ii) the company is on the brink of insolvency or has stopped making payments; or (iii) the company’s assets do not cover its debts.

If the company meets either of these criteria, steps should be taken to manage the crisis and take capital measures (additional payments, capital increase, capital decrease).   Customers with companies in Hungary should contact their designated Global Subsidiary Coordinator at with questions.