What can you expect when you turn to me for company formation or company modification? In this post, I will walk you through the workflow so you can see and understand it clearly.
The Company Formation Process
The first and most important step is to contact me. You can do this by phone, email, or right here through the website. You let me know that you would like to establish a company. In my experience, in 90% of cases, the business entity to be formed is an LLC (Kft. – Korlátolt Felelősségű Társaság).
At this point, I will ask the members and managing director to send photos of both sides of their ID card, address card, and tax card by email, or, in the absence of photos, the following details:
name, birth name, personal identification number, place and date of birth, mother's name, address, tax identification number, ID card number, address card number, phone number, email address.
In addition, the following information is required:
- Company name (usually a few options are needed due to the principle of corporate name exclusivity, which I pre-screen with the Company Court)
- Registered office, site, and branch office addresses
- Email address
- Amount of share capital
- Distribution of capital among members
- Business activities, agreeing on the primary business activity
- Official company email address
- Other details required to draft the Articles of Association
Furthermore, it is important to discuss tax-related questions either with you or your accountant.
At this stage, I will also provide detailed information regarding legal fees.
The Second Phase
Ideally, I prepare a statement of facts and engagement agreement, send it via email for signature, and await the scanned copy. This is primarily necessary to avoid any disputes regarding legal fees or the scope of engagement. If contract execution does not take place for reasons not attributable to me (e.g., one of the parties withdraws) after the draft contract has been prepared and sent, an amount equal to 80% of the legal fee will be invoiced, as the work has been performed.
Step-by-step company formation process:
- Drafting: Preparing the draft documents and sending them to the client via email for review.
- Feedback: Awaiting your feedback on whether everything is correct or if any modifications are required. If changes are needed, I update the documents and resend them for approval.
- Scheduling: Setting an appointment for the signing session.
- Signing: I welcome clients with the printed, pre-agreed contract. The client reviews the documents, or they are read aloud prior to signing. Simultaneously, a JÜB (attorney identity verification) check is conducted, and anti-money laundering (AML) forms are completed and signed. The company receives one original copy of each document, and the legal fee is settled in cash or by transfer based on the invoice.
- Company Court submission: I assemble the electronic file (e-akta) from the scanned documents and application, and submit it to the competent Company Court. The court sends the decision directly to me, which I forward electronically in certified form to the client along with the electronic file. With this, the client can go to the bank to open a corporate account, and the accountant can file the required tax notifications.
It's not that complicated, is it? In the next post, I will cover the process of company modification.
Book an appointment, and I will establish the company of your dreams!