Anyone with a company in Hungary (Kft)?

We have created a Hungarian company two years ago in order to purchase our property in Budapest.

We have been informed by our lawyer that according to the new Companies Act the existing Hungarian companies shall amend their Articles of Association to meet the provisions of the new Act, not later than 1st September, 2007. This means amendments to the charter of the company. This provision is mandatory, if you do not meet the deadline; your company will be liquidated by the order of the court.

They are asking for 400 € + 20% VAT for the document preparation and representation vis-à-vis the Court of Registration.

Has anyone else did came across this? What level of work does that involve and is 400€ + vat a reasonable price?

Thank you for your feedback.

Hello ketelkedo,

You are well informed about new Act but €480 seems a bit high because price of document preparation has 3 main elements:

- legal fee (it depends on your solicitor's attitude)
- Court duty: according to Act - HUF 8,000 if more than 2 lines are modified in the Articles of Association
- charge for official announcments: according to Act - HUF 10,000

I think your solicitor wants to earn a lot on a very simple paperwork:

- €480-€72= €408 as legal fee is very high comparing to legal work

You can discuss it with your solicitor or choose someone else...because legal fee should be around €200 plus fixed charges!

ketelkedo. you seem to have a lot of difficulties with your investment here.. decent lawyer will charge 300-400 euro for the work it's a lot of money for simple work but that's lawyers..