Hungarian company liquidation at high; increase expected
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.