Some 129,295 Hungarian limited liability companies (Kft.) are now required to raise their registered capital to HUF 3 million to avoid fines from Hungary’s company court, according to reports published yesterday.
Under the amended Civil Code, limited liability companies must raise their registered capital to HUF 3 million or more as of March 15, according to reports. The earlier minimum was set at HUF 500,000.
There are 52,615 companies based in Budapest that have not yet raised their registered capital, while 21,458 are from Pest county and 4,816 from Bács Kiskun county, Hungarian news agency MTI reported citing the database of ceginfo.hu. In a breakdown by sector, these include 5,925 consulting companies, 4,483 accounting and auditing companies, 4,389 catering companies, 4,375 construction companies and 5,624 road haulage and engineering companies, MTI added.
After March 15, businesses not meeting the requirement could be subjected to an oversight procedure, which could result in penalties or, eventually, forced liquidation, MTI said.