VI. Consultancy for setting-up trading companies.

When setting-up a company, its denomination is chosen before starting the registration at the Trade Registry. Taking into account the denominations of the companies previously registered on the territory of Hungary, only those denominations, which differ from the existing ones, will be approved, according to the already stated criteria.

The registered (subscribed) capital should be determined having in view the minimum level prescribed by the law - 3 mill. HUF - and the quantum of capital of each partner must be established. When the registered capital is determined, partners must have in view the contribution in cash and in kind; the contribution in cash can not be lower than 30% of the minimum capital provided by the law, namely 1 mill. HUF.

From among the partners, the authorized persons and those in charge with the company's administration must be appointed, as well as the way of engaging the company. The area of the object of activity according to TEAOR 98 must be established along with the profile of the company, according to the following details.

Decisions should be taken with regard to the duration of the company (set up for a limited or unlimited period of time). Partners should decide with regard to the moment of starting the activity, date that will be considered as starting date of the activity.

If the company does not start operating up to the registration date in the Trade Registry (as it is now, about 1 month from the date of registration of the registration request), then, those mentioned below must not be accomplished.

If the starting of the operation is desired, from the day the company contract, the setting-up document respectively, is drawn up, then at setting-up of the company, partners should decide the operation as a pre-company.

The pre-company

The trading company can start its activity once the company contract has been authenticated. We must, however, underline that this activity is very much limited. This is because the company is not yet legally set-up and registered in the Trade Registry.

The pre-company expresses this state of legal suspension.

This transitory state of pre-company is of about one month and covers the time period between the authentication of the setting-up documents of the company up to the moment the legal decision of registration remains final and the registration in the Trade Registry is accomplished.

In this period the company's denomination is followed by "b. a."(bejegyzes alatt = registration in progress). The limitation consists in the fact that for the activities that need official approvals, the approvals can not be got but after the registration of the company.

The pre-company is submitted to the regulations referring to the trading company to become, but there are other provisions as well, as it follows:
a) it is forbidden to make changes with regard to the partners of the company, except for the cases prescribed by the law;
b) it is forbidden to bring any changes to the setting-up documents, except for the cases when the judge decides it;
c) it is forbidden to start the legal procedure of exclusion of the partners;
d) the decision of the dissolution without lawful heir can not be taken, or the modification of the legal type of company and its transformation into a company of public utility.

In case the registration request is rejected and the decision is final, the pre-company ceases its activity and according to the dissolution of companies without lawful heir, the partners have the obligation to divide the rights and obligations among them and are liable towards the thirds.

After registration in the Trade Registry, according to the book keeping, the activity of the pre-company must cease and according to the rules of calendar year the balance-sheet is drawn up and the "b. a." added after the denomination will be erased.