Certain types of business entities can be established without procedural fee payment obligation, as of 16 th March

Act II of 2017 on the revocation of certain stamp duties and procedural fees related to administrative proceedings entered into force on 16 March 2017, as a result of which several types of official proceedings will be conducted free of stamp duties and fees in the future.

The most important news for business entities is that as of 16 March 2017, certain type of business entities can be established without procedural fee payment, as there will be no mandatory stamp duty and mandatory publication fee payment obligation for the establishment of the following types of companies: limited liability companies (Kft.), general partnerships (Kkt.), limited partnerships (Bt.), and sole traders (single member companies), regardless of whether the company is established in a simplified procedure (by using an incorporation document template) or a standard procedure. This will result in several tens of thousands, and even up to a hundred thousand Hungarian forints savings for the founders of such companies in the future. However, such amendment to the law does not apply to stamp duties and publication fees payable in relation to any later modification of the company registration data, and the new rules shall not apply to the procedural fees payable upon the establishment of other types of business entities, for example private limited companies (Rt.).

Additional modifications to other laws introduced by the above referred law include provisions applicable to private individuals. The following official proceedings will be exempt from procedural fees in the future (amongst others): issuance of a birth certificate, issuance of a health insurance fund official certificate required for applications for government grants (twice a year), and the processing of applications submitted by Hungarian citizens living outside of Hungary, for a registration in the Hungarian national registration system of their personal identification data, and permanent address or service address.