To-Dos after setting up a company

Klaudia Gáspár at July 04, 2022

Once the company is registered, there are still some important steps to take, and failure to do so can result in heavy fines. When setting up a company, the lawyer in charge will provide information on all the filing and registration obligations, but unfortunately this is not always done. These tasks are mostly the responsibility of the accountant, but the failure to provide information is often due to the lawyer believing that the founders are aware of what they have to do.

Chamber registration

You must register with the relevant Chamber of Commerce and Industry within 5 days of incorporation. At the same time, the HUF 5,000 Chamber fee must be paid.

Open a bank account

The person authorised to represent the company – i.e. the managing director – must open a bank account within 8 days of incorporation. Under the Tax Act, this is not an option but an obligation for companies.

Preparing a power of attorney for the accountant

Immediately after the company is incorporated, it is advisable to grant a power of attorney to the accountant, who will then be entitled to handle tax matters. This can now be done with just a few clicks on the Ebev portal, details of which can be found here:

Registration under NAV, KSH, HIPA

An authorised accountant can arrange for the registration with the KSH (Hungary Central Statistical Office=HCSO), which must be done within 15 days of incorporation

Regulatory and operating licences, notifications

Depending on the activity of the company, the notification obligations must be fulfilled as soon as possible. Some examples: in the case of a company engaged in financial activities, the MNB must be notified, and in the case of a company selling hot food, the ÁNTSZ. For certain activities, an operating licence must also be obtained.

Purchase of an invoicing program or cash register

It is really important to get an invoicing software, because without it the company cannot prepare invoices. It is also possible to use an invoice pad, but this is not recommended in 2022, as from 1 January 2021 all invoices issued must be reported to the NAV and this is very cumbersome for paper invoices.

The advantage of the invoicing software is that it is linked to the NAV, so all invoices issued there are automatically sent to the tax office.

Those who are obliged to use a cash register will also need at least one cash register, for which a code can be obtained from the NAV and the cash register registered.

Preparation of internal regulations

Rules for the operation and accounting of the company must be drawn up within 90 days (e.g. accounting policy, cash management rules, etc.).

Opening a Corporate Mailbox

If the company director does not have a E-Identification Services, this gap must be filled, because companies are required to open a Corporate Mailbox (official contact with the Organizations), which can only be done if they are registered with a E-Identification Services.