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enfold_admin2024-10-18 11:56:472024-10-18 12:00:32What is the personal income tax rate in HungaryMinimum Share Capital Requirements for a Kft. in Hungary:
If you are thinking about company formation in Hungary, one of the key elements to consider is the minimum share capital requirement, particularly for a Kft. (Korlátolt Felelősségű Társaság), which is the most popular form of limited liability company in the country. This article will provide a detailed overview of the minimum share capital requirement for a Kft..
What is a Kft.? What type of company is a KFT?
A Kft. is a type of limited liability company in Hungary. It is designed for small to medium-sized enterprises and is preferred by many entrepreneurs due to its flexibility and limited liability features. In a Kft., the shareholders’ liability is limited to their contributions to the share capital, which protects personal assets from business liabilities.
What is the minimum share capital of a KFT?
As of the latest regulations, the minimum share capital requirement for forming a Kft. in Hungary is HUF 3 million (approximately €8,500).
Breakdown of the Requirement:
- Total Amount: The minimum required capital is HUF 3 million, which must be contributed by the shareholders.
- Form of Capital: The capital can be contributed in cash or in kind (assets), though cash contributions are more common. If contributing in kind, the value must be determined and documented, and the assets must be suitable for the company’s operations.
Implications of the Minimum Share Capital Requirement
- Financial Stability: The minimum capital requirement acts as a safeguard for creditors, ensuring that the company has some level of financial stability. This requirement can enhance the credibility of the business in the eyes of suppliers, customers, and investors.
- Operational Flexibility: A Kft. allows for various business activities, making it a versatile choice for entrepreneurs. Having the necessary capital can facilitate the procurement of goods and services, hire employees, and manage operating expenses effectively.
- Limited Liability: One of the most significant benefits of a Kft. is limited liability. Shareholders are only liable for the company’s debts up to the amount of their contributions. This means that personal assets are protected, providing peace of mind for entrepreneurs.
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