Hungary

Operating a business

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
Korlatolt felelosségû tarsasag ( Kft) is a Private Limited Company.	No limitation.	HUF 3 million minimum, cash contribution should be at least 30 %.	Liability is limited to the amount contributed.	2% of the initial capital + publication fees HUF 10000
Részvény tarsasag ( Rt) is a Public Limited Company.	No limitation.	HUF 20 million minimum, cash contribution should be at least 30 %.	Liability is limited to the amount contributed.	2% of the initial capital + publication fees HUF 15000
Közkereseti tarsasag ( Kft) is a general partnership	No limitation.	No minimum capital.	Partners' liability is several and indefinite.	N/A
Betéti tarsasag (Bt) is a limited partnership.	Two types of partners: active partners (General Partner) and sleeping partners (Limited Partner).	No minimum capital.	Unlimited liability for at least one partner (General Partner). Unlimited liability for at least one sleeping partner (Limited Partner).	N/A

Business setup procedures: Establishment of status must be authenticated by a lawyer or a notary. Further steps related to constitution and registration of the future company must be made through legal representative. Status must mention the company's corporate name chosen by the founders as well as the purpose of the future company. Status must be deposited in three copies with the commercial court of the place of establishment within 30 days after the founders' signature of the documents. Court has to register partnerships within 30 days and corporations within 60 days. More information on Hungary website.
The competent organization: More information on Hungary website.

Legal weekly duration: 40 hours
Retirement age: 20 years in service and minimum 62 years.
Working contracts: Full- and part-time contracts, assignment contracts, outsourcing contracts. More information on Just Landed website.

Minimum wage: 65.500 HUF (262 EUR) in 2007
Average wage: Private sector: 106 863 HUF.
Public sector: 121 434 HUF.
Social contributions: Social security contributions paid by employers: Medical insurance 1950 HUF
social security 11%
pension insurance 18%
unemployment insurance 3%
training contribution 1,5%
Social security contributions paid by employees: Social security is paid by employees at the follow amounts: pension contribution: 8.5%, health care contribution: 4%, Unemployment contribution: 1%.

Bargaining power: The law allows unions to conduct their activities without interference, and the government protects this right in practice. Collective bargaining is protected by law, and it was freely practiced. Approximately 40 percent of the workforce is covered by collective bargaining agreements (almost 3,000 collective bargaining agreements existed). Workers have the right to strike, and workers exercise this right in practice.
Unions: Cooperation Forum of Unions
National Organization of Hungarian Unions
Unionization rate: 40%
Labor regulation bodies: Ministry of Labor