Forwarding representative and seat provider in Hungary: What’s the difference?

می 25, 2022

Many companies in Hungary have their seat address with a provider and not at a location of their own. If the owner is not Hungarian, the seat provider can also become their forwarding representative in Hungary. But what does this mean exactly? Let us explain the difference.

Registered seat in Hungary

The registered seat of a Hungarian company is the Hungarian address where authorities except to find the company, meaning that official mail is addressed there. If the official letter comes with a return receipt request, any person present at the address are entitled to receive that letter on behalf of the recipient.

If the registered seat of the company is at its own location, the recipient will probably be an employee of the company. However, many Hungarian companies have their registered seat with a provider, because it saves them time and effort. In that case, the employees of the registered seat provider can receive the letters addressed to the companies for which they provide this service.

Being a forwarding representative in Hungary

The concept of the forwarding representative in Hungary is relevant for individuals instead of companies. While every Hungarian company must have a registered seat, company owners must also have an official address in Hungary where they can be contacted. If the company owner is not a resident in Hungary and they do not have an official address, they need a forwarding representative who can handle mail on their part and forward messages to them as necessary.

When someone without an address in Hungary sets up a company, it makes sense to set their registered seat provider also as the forwarding representative of the owner (and/or the other executives and members of company). This is a separate service that can be ordered and discontinued, same as the registered seat service.

Who can be your forwarding representative?

The forwarding representative of someone can be any natural or legal person who is independent of the principal and has a Hungarian address. In line with this, the registered seat provider can undertake to become the forwarding representative of the owners, executives or members of the company they also provide the registered seat for. For the same reason, no one can become the forwarding representative of someone involved with the same company.

For example, if the company has two owners, one foreign and one Hungarian, the Hungarian owner who already has a permanent address in Hungary cannot become the forwarding representative of the other owner.

Comparison at a glance

The registered seat service is relevant for companies. It is most like a rental service, where a provider offers your Hungarian company an address it can use as its own. The provider can be any natural or legal person with a Hungarian permanent address. The registered seat is part of the core data of the company, so modifying it requires company modification.

The forwarding representative is relevant for the persons owning and operating the company, who give authorization to a natural or legal person with a Hungarian permanent address to handle their incoming mail for them. The representative must be independent from the principal. The authorization is registered primarily with the Hungarian Post, while it is also indicated in the Company Registry. Any change is handled by the Hungarian Post, but it also must be reported to the Company Registry within 15 days. However, as this is not considered a core data of the company, it does not require company modification.

 Registered seatForwarding representative
Relevant forcompaniesnatural persons
Type of relationshiprentalauthorization
Registered withCompany RegistryHungarian Post
Modificationrequires company modificationdoes not require company modification, but must be reported to the Company Registry
It can beany natural or legal person with a Hungarian permanent addressany natural or legal person with a Hungarian permanent address who is independent of the principal

Registered seat and forwarding representative service from Helpers

Helpers offers comprehensive business assistance in Hungary with a special expertise in working with foreign investors. This includes not only company formation, but also providing registered seat and forwarding representative services. In fact, what we offer is a “virtual office”, where our colleagues not only receive and forward incoming official mail, but also sort letters, and can send them directly to the company’s accountant or forward it together with a brief, actionable English summary, as necessary.

Got you interested in our services? Fill in the form below, and contact us today.

Want an exclusive deal? Click here, and ask for a seat upgrade with our team, and we will cover the legal costs of transferring your registered seat.

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Company modification tips Hungary – Address change
Company modification tips Hungary – Address change

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