Dissolution

Inasmuch your company’s operation became unnecessary, or means an unreasonable burden, you can opt for its dissolution. It is essential, that the dissolution is only possible if your company does not have any obligation, which the company is not able/ not intended to settle until the end of the dissolution.

Let us introduce the necessary steps for the dissolution of your company. Please note that in individual cases the responsibilities, other circumstances can be different.

 

Necessary steps: conclusion date of the dissolution

1. A preliminary, free consultation (can be personal also), where we reconcile the process of the dissolution if necessary. We inform you about the expected period of time, and the documents needed to be prepared.
2. Our office prepares the necessary resolutions, other documents needed for the dissolution process, based on the prior consultation. For this we will need the last, applicable constitutor document (association contract or deed of foundation), which you can send us in e-mail.
3. The members, the former directors and the chosen liquidator sign the documents. They can sign the documents in our office (in this case the fee has to be paid as the same time as the signing), or we can send you the documents in pdf format (in this case you have to pay the fee before we can send it to you), and you can sign them remotely at the Hungarian Consulate or at a notary who speaks English language (this will have additional costs). Please note that identification documents are a requirement from everybody for signing the documents.
4. The dissolution process starts with the signing, which has to be finished within three years (in case of simplified procedure within 150 days). Obviously, the procedure is not necessarily this long, it approximately takes 4-6 months.
5. The chosen liquidator (in most cases the former director) informs the company’s accountant and members of the starting date of the dissolution. They prepare the closing balance sheet with the sheet date before the start of dissolution, but unlike its name, the company remains operational.
6. The notice of the dissolution of the company will be published in the Companies Gazette within a few weeks from the start day of the dissolution. The possible lenders can apply with their certified demands within 40 days calculated from the publishment. The expiry of the 40 day deadline is not enforceable, but it is more complicated to enforce the indicated demands after the expiry of the deadline.
7. The liquidator prepares the list of demands after the expiry of the 40 days deadline, and sends it to the Court of Registry through our office.
8. The members in consultation of the director and the accountant decide the conclusion date of the dissolution. Please note that you have to notify us in time, so that we can prepare the necessary documents in connection with the conclusion of the dissolution.
9. You have to sign documents in connection with the conclusion of the dissolution. You can sign them personally at our office, or remotely at the Hungarian Consulate or at a notary.
10. Inasmuch you do not need your company’s bank account anymore, you can terminate your account.
11. You prepare the conclusion report and the asset allocation proposal with the assistance of the accountant, you obtain the verification of the period between 1 January 2010., and the conclusion date of the dissolution from the National Tax Authority, which proves that the data of the insured persons were reported and the company fulfilled its obligation during that period. You have to send us these documents within 30 days from the conclusion date of the dissolution.
12. We hand in the necessary documents to the Court of Registry.
13. The Court of Registry cancels the company from the registry, as soon as they get the notice from the National Tax authority, that there is no barrier to the cancellation.
14. We will forward the cancellation order immediately to you.

 

Important information:

• The member’s loan is an obligation too, so it is expedient to check the obligations in the records before the process. In case there is member’s loan and the company can’t settle it, the members, as creditors can resign it. In this case, it may be necessary to pay a gift tax.
• The company must have a bank account until the conclusion date of the dissolution.
• The liquidator has a similar responsibilities and power, as the former directors.
• The process of dissolution requires specific steps in many cases, same circumstances can’t be assured in all cases. The outlined process is a simplified, standard version, which provides only a brief overview of the expected process. Precise information is always available in the knowledge of the actual circumstances.

As you can see the coordination of the dissolution needs special, serious knowledge and experience. Based on our company’s nearly two decades past and high case number, you can contact us with confidence. If you entrust us with your confidence we can help you carry out all the necessary measures needed for your company’s dissolution.