Company modification is the official procedure through which a lawyer helps you change the core data of your Hungarian company with the Company Registry. One of the cases you need this procedure is when there is a change to the address of any of the owners and main executives.
Information about your company is considered public data in Hungary. As a result, it must always be up to date in the database of the Hungarian Company Registry. The database is available online at https://www.e-cegjegyzek.hu/.
Company modification is the procedure for giving an official notice to the Company Registry about any change to your company data. It always needs to involve a lawyer, and it has a fixed fee. Not every change requires company modification, however: some data are updated automatically, like your corporate bank account numbers, while some can be updated by your accountant, like your activities.
To learn the basics of company modification in Hungary, click here.
The address of the owners and executives is considered part of the core data of a Hungarian company. There are two reasons for it:
As a result, changes to their permanent addresses should be reported to the Company Registry. In some cases this is automatic, but even then it is worth checking whether the update has actually happened. Below we list some cases that are typical in our work with foreign company owners.
Many of our clients do not have a Hungarian address when they first set up their Hungarian company. However, later they might become Hungarian residents, with a Hungarian permanent address. When that happens, their address should automatically update in the database of the Company Registry.
Nevertheless, the data flow between the Company Registry and other authorities is not always smooth. As a result, when you get your Hungarian residency, it is worth checking if the Registry has been updated.
If you see that the Company Registry has not been updated within 30 calendar days after you have received your proof of address, we suggest you start the company modification procedure. We understand that this is a costly inconvenience; however, there is unfortunately no other way to have your data corrected, and it is your responsibility as the company owner to have your data up to date in order to prevent further fines.
Sometimes our clients leave Hungary after a few years of Hungarian residency. In this case, if they do not want to continue to pay taxes and contributions in Hungary, they need to deregister from Hungary, and cancel their Hungarian address.
At the same time, you still need to have a valid permanent address indicated in the Hungarian Company Registry. Your new foreign address will not automatically update, since the Hungarian database is not in direct contact with any foreign address registry. You will be able to update your foreign address through the company modification procedure.
Moreover, you still need a Hungarian address for yourself in case authorities want to contact you. This may be a care-of address (CoA), where an authorized person (a “delivery agent”) may receive incoming mail on your behalf and forward it to you as necessary. This is very much like a virtual office for your company, but it is for you personally. The delivery agent must also be listed in the Company Registry.
(By the way, if your seat address is not yet with a virtual office provider, moving out of Hungary is a good time to move your seat address to a provider in order to make sure official mail will always reach you and your company. Here you can learn more about the virtual office services of Helpers.)
Even if you have a foreign address indicated in the Company Registry, it must be a valid address which you must keep up to date. When your foreign address changes to another foreign address, company modification is the only way for this to be recorded in the Hungarian Company Registry.
Helpers has almost 20 years of experience providing business solutions to foreign company owners active in Hungary. We offer a one-stop-shop for every aspect of company operation, and naturally this includes:
Got questions? Fill in the form below to contact us, or reach out to your account manager if you are already a client.
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