The business idea was born and ownership was formed and do you know who will do what in the company and what? Do you want to get over the administration quickly and start a business?
In this article, we’ll take a closer look at what a fast, online business start-up looks like and what to look out for. We go through the basics. It is worth reading everything so that you can make a responsible decision when starting a company.
If you have any questions about starting an online business, a lawyer available on the Legisly platform will be happy to provide you with a FREE 15-minute consultation. Click here to do so .
There are a number of things you need to decide on when starting a business, including the type of company you want to set up and the underlying responsibilities. In a limited liability company, for example, a member of a limited liability company is fully liable for the debts of the company, while in a limited liability company, as a general rule, the member is liable only up to the amount of the ordinary deposit. Although the establishment of a limited liability company does not necessarily require a share capital of HUF 3,000,000, as, say, a limited liability company. in the case of. You can get more information about the company forms by clicking here.
In today’s article we deal with the establishment of the most common form of company, ltd. with the establishment of a limited liability company. with a simplified form of establishment. Before we get to the point, let’s take a look at three (3) basic questions you can even skip. The basic questions are for those who want to understand the meaning of the simplified procedure.
Why is starting an online business easy and fast?
Let’s start with the basics (1): What does the simplified company registration procedure mean?
In Hungarian law, there are two types of company registration procedure, which comply with the general procedural rules, which can take up to 15 working days or sometimes longer, whereas a regular simplified company registration application is generally considered by the court on the working day following the tax number. A simplified company registration procedure can be requested if the company is established using a model contract specified by law and this model contract is suitable for most company foundations.
One more basic question (2): What kind of companies can be set up under a simplified procedure?
At present, even kkt, bt, kft, zrt. and a sole proprietorship can also be established with a model contract. It is important to know, however, that in such samples, essentially nothing can be modified, the sample can only be completed just like a test. After all, if the sample is modified, the court of registration will proceed according to the general rules and you will not be able to enjoy the benefits of quick registration.
The last basic question (3): Why can the simplified procedure be faster and cheaper?
As there are standard requirements for most company formations, the legislator aimed to reduce the workload of company judges and to be able to process applications at lower levels, even for drafters or court clerks, as examining samples proves to be a simple task. In the simplified company procedure, part of the substantive responsibility lies with the legal representatives, so the legal representative has to pre-screen a number of issues, which, however, is a much easier task for a model foundation than for a complex, individual memorandum of association.
… and that’s where the point begins:
What do you need to start a business?
Of course, you will need a number of documents to start a business, such as an identity card (driving license, passport), address card, tax card, but in the case of a sample business start-up, you can or will simply meet the requirements with your co-founders. The details will be provided to you by your legal representative during or before your online business start-up, in accordance with current law.
What do you need to decide before you go to a solicitor?
Before entrusting a lawyer to prepare the necessary documents, be sure to consider the following questions and if you have more than one company to start a business, agree on at least the following:
- What form of company do you want to start a company in? Ltd.? Bt.?
- What should be the name of the company? You will have to pay close attention to everything here, as you cannot choose previously registered companies or similar names.
- Who or what should be the company’s senior executives, ie executives? It is also relevant whether there are any grounds for exclusion for the person or persons selected. You can check this later with the help of a lawyer.
- Who will be the owners and members of the company and in what proportion? What is the share of the company’s profit and what is the voting right of each owner?
- Where will the company be based? Do you want to use a home service?
- What is the main activity and scope of activities of the company (these can be found at the link on the Legisly website)
- What will be the subscribed capital and how will the payment be made?
If you have read through what you have read before, it is worth contacting a lawyer, who will of course help you to decide the former if you have any questions.
In practice, going to a lawyer involves an assignment, which can be done either electronically or in person. Through the Legisly platform, you can access the lawyer who is involved in the formation of the company completely electronically, so you don’t have to appear in person or print anything unnecessarily to sign the contract.
Starting an online business
Many people don’t believe it, but today it’s really a solution that you don’t have to travel, park, print, and meet with members or a lawyer to start a business.
But that’s the way it is. Hungarian law and the Legisly platform, for example, can help you with this and you can even get an electronic signature with which you can sign all the necessary documents. Not just now when starting an online business, but later. If you use the Legisly platform, obtaining this signature is free. From then on, you don’t need to print, travel or scan, but you can simply sign different documents electronically. So it’s worth taking the time to get your electronic signature. And when starting an online business, the lawyer fulfills the required identification obligation with the help of video identification.
Once you have the details, how do you start an online business?
If you have contacted a solicitor on the Legisly platform, once you have thought through the questions you need to decide, all you have to do is fill in the forms and then entrust the chosen solicitor to do the work and clarify the issues with the solicitor online. It’s a simple process and you’ll be notified via email and you can even talk to a lawyer if needed. If all goes well, this part of the process will take no more than an hour or two. The company is founded by identifying the members and an online inaugural membership meeting or general meeting.
The lawyer will then prepare the necessary documents, which will be sent to you for electronic signature, and then submitted to the court of registration after acceptance and signing.
You are now familiar with the process, but there are still some important issues that I have seen raised in a few other places.
What is it worth paying attention to when laying the foundations of a company, that is, agreeing on the details of a memorandum of association?
We would like to draw your attention to two seemingly small things that are definitely worth paying attention to during the foundation. One is the issue of additional payment. The company’s articles of association must regulate in advance whether an additional payment obligation can be imposed at a later date. If members agree that an additional payment may be required, some members may be disadvantaged at a later date if they are unable or unwilling to meet their additional payment obligation. In such cases, their business share in the company may decrease against their will. Therefore, think twice about this issue.
The other important question is whether the shareholding in the company can be transferred to a person other than the members. There are arguments for and against both options, which is why you should try to consider the options in advance and decide accordingly.
Can the rules on dividends and voting ratios differ from business shares?
Yes of course. It is conceivable, for example, if three of you start a company, one member has half of the dividend entitlement, but let’s say all three vote equally at the company’s general meeting.
Many people ask us, is it really possible to start a business in as little as 1-2 days?
Yes, if the company is established according to the rules of the simplified procedure, ie using the model contract, then yes. If the essential issues are resolved quickly and the data is provided and the company is set up soon, the court of registration will, as a general rule, deal with the application within one working day of issuing the tax number. There have already been cases where the company was “ready” the day after the check-in.
What happens if the documents needed to start a business are signed?
In this case, the lawyer initiates the registration of the company in an electronic procedure, and as a result of the communication between the court of registration and NAV, the company will ideally receive its tax number and the court of registration will arrange for the registration of the company. Of course, it is conceivable that an application for company registration will be rejected for some reason. In such a case, the lawyer will indicate the fact and any further action and options.
How do you know that your business has been registered?
The court of registration does not directly notify the founder or chief executive officer / managing director of the fact of registration, but the legal representative. Therefore, in practice, the legal representative notifies the members if the company has been registered. Of course, not all legal obligations have been met after registration, as the company must open a bank account within 8 days of registration, for example. An attorney accessed through the Legisly platform will inform you of the next steps after registration.
Do you have more questions?
Of course, not a single summary can tell you everything about starting a business quickly and easily. If you are bothering to start a business, ask your questions to an expert lawyer for free through the Legisly platform here .
You can access the company formation service here: https://legisly.com/ther/cegalapitas/
Read our article on company forms by clicking HERE .
You can access the Companies Act HERE .