From 1 January 2010, individual
A private enterprise is a new form of legal entity which:
- may only have one founder
- is established by registration in the companies register (by the competent court of registration)
- may enter into contracts and do business in its own name and at its own risk
The deed of foundation may be prepared either
If liability is limited, the deed of foundation must state the amount of additional payment to be made when its assets do not cover its debts (which represents the full extent of the founder’s liability). If liability is unlimited, the founder’s other assets can be used to satisfy the debts of the business.
The deed of foundation must also state the amount of its registered capital, which may consist of cash or, if the registered capital exceeds HUF 200,000 (approx. €750) both cash and in-kind contribution.
Law: Act CXV of 2009 on private entrepreneurs and private enterprises
