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Hungarian company liquidation at high; increase expected

Competition

The number of company closures exceeded the number of newly established companies in Hungary for the first time in decades in Hungary last year, business service providers Opten, reported earlier this week. Optenfigures show that 33,137 Hungary-based companies closed last year, just under the 32,481 companies established.

 Opten managing director Tamás Tóth explained the high amount of liquidation among Hungary-based businesses as due to legislation which entered into law in 2013, while also attributing the stagnant economy as cause for the relatively low number of enterprises created: In 2012, some 38,512 new companies were founded and 50,344 opened in 2011.

Tóth reckons that, because of new regulations for limited liability companies, “tens of thousands of businesses will decide on restructuring or [closure]” within the next two years. Opten is expecting 40,000 to 45,000 Hungary-based enterprises to wind up operations in 2014.

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