Hungary
Financial Reporting Obligations for Companies in Hungary
1. Registry for Submission of Financial Statements
In Hungary, companies are required to submit their financial statements (annual reports) to the Company Information and Electronic Company Registration Service (Céginformációs és Elektronikus Cégnyilvántartási Szolgálat). This service operates under the Court of Registration (Cégbíróság) within the Ministry of Justice.
- Registry: Company Information and Electronic Company Registration Service — e-Beszámoló (https://e-beszamolo.im.gov.hu)
- Company Register Search: Electronic Company Register (https://www.e-cegjegyzek.hu)
- Court of Registration (overview): National Office for the Judiciary (https://birosag.hu)
2. Legal Forms Obligated to Publish Financial Statements
Comprehensive list of legal forms in Hungary regarding financial statement requirements:
- Korlátolt Felelősségű Társaság (Kft.)
- English Translation: Limited Liability Company
- Obligated: Yes. Kft. must submit financial statements annually.
- Részvénytársaság (Rt.)
- English Translation: Joint Stock Company
- Obligated: Yes. Both forms of Rt. (Nyrt. and Zrt.) must submit financial statements annually.
- Subcategories:
- Nyilvánosan működő részvénytársaság (Nyrt.): Public Joint Stock Company
- Zártkörűen működő részvénytársaság (Zrt.): Private Joint Stock Company
- Betéti Társaság (Bt.)
- English Translation: Limited Partnership
- Obligated: Yes, if certain financial thresholds are exceeded.
- Közkereseti Társaság (Kkt.)
- English Translation: General Partnership
- Obligated: Yes, if certain financial thresholds are exceeded.
- Szövetkezet
- English Translation: Cooperative Society
- Obligated: Yes, must submit financial statements.
- Egyesülés
- English Translation: Association
- Obligated: Yes, must submit financial statements.
- Közhasznú Társaság (Kt.)
- English Translation: Public Benefit Company
- Obligated: Yes, required to submit financial statements.
- Közalapítvány
- English Translation: Public Foundation
- Obligated: Yes, required to submit financial statements.
- Egyéni Cég (EC)
- English Translation: Sole Proprietorship with Legal Personality
- Obligated: Yes, if financial thresholds are met (e.g., higher turnover or VAT registration).
- Egyéni Vállalkozó (EV)
- English Translation: Sole Proprietorship
- Obligated: Generally not required to publish financial statements unless exceeding certain thresholds.
- Vállalatcsoport
- English Translation: Group of Companies
- Obligated: Yes, if the group exceeds thresholds for revenue, assets, or employees.
Legal Forms Not Obligated to Submit Financial Statements:
- Egyéni Vállalkozó (EV): Typically exempt unless exceeding thresholds.
- Civil organizations and associations not engaged in profit-oriented business activities are generally exempt unless classified as public benefit organizations.
3. Companies Required to Audit Financial Statements
The table below provides a detailed breakdown of the legal forms in Hungary, the applicable rules, and the criteria for mandatory audits:
|
Legal Form (Original and English Translation) |
Rule |
Criteria for Mandatory Audit |
|
Korlátolt Felelősségű Társaság (Kft.) - Limited Liability Company |
Mandatory audit if certain thresholds are exceeded |
Audit required if two of the following three criteria are met: |
|
Részvénytársaság (Rt.) - Joint Stock Company |
Mandatory audit |
Auditing is required for all Rt., regardless of size or criteria. |
|
Betéti Társaság (Bt.) - Limited Partnership |
Conditional audit |
Audit is required if the company exceeds two of the three criteria applicable to Kft. (mentioned above). |
|
Közkereseti Társaság (Kkt.) - General Partnership |
Conditional audit |
Audit is required if the company exceeds two of the three criteria applicable to Kft. (mentioned above). |
|
Szövetkezet - Cooperative Society |
Mandatory audit |
Audit required if the cooperative exceeds two of the following three criteria: |
|
Egyéni Cég (EC) - Sole Proprietorship with Legal Personality |
Conditional audit |
Audit is required if financial thresholds (similar to Kft.) are exceeded. |
|
Közhasznú Társaság (Kt.) - Public Benefit Company |
Mandatory audit |
Audit required due to public interest obligations, regardless of financial size. |
|
Közalapítvány - Public Foundation |
Mandatory audit |
Audit required due to public interest obligations, regardless of financial size. |
|
Egyesülés - Association |
Conditional audit |
Audit is required if the association exceeds two of the three criteria applicable to Kft. (mentioned above). |
Key Criteria for Auditing
- Net Revenue: HUF 300 million or more
- Total Assets (Balance Sheet Total): HUF 150 million or more
- Number of Employees: 50 or more
If a company exceeds two out of these three thresholds, an audit of the financial statements is required.
Special Cases
- Public Joint Stock Companies (Nyrt.) and Private Joint Stock Companies (Zrt.) are always required to undergo audits regardless of financial size.
- Public Benefit Companies (Kt.) and Public Foundations (Közalapítvány) must also be audited due to their public interest roles.
4. Stock Exchange for Listed Companies
Companies listed on the Hungarian stock exchange must publish their financial statements on the Budapest Stock Exchange (Budapesti Értéktőzsde, BÉT) — https://www.bse.hu.
5. Deadline for Submission of Financial Statements
The deadline for submitting financial statements in Hungary depends on the legal form:
- Kft., Rt. (Zrt. and Nyrt.): Financial statements must be submitted by May 31st of the following year.
- Bt. and Kkt.: Same deadline as Kft. and Rt., by May 31st.
- Egyesülés and Szövetkezet: Deadlines typically align with May 31st unless otherwise specified.
6. Partial Financial Statements Submission
Hungarian law generally requires full annual reports for entities obligated to file; partial financial statements are not typically permitted.
7. Consequences of Not Submitting Financial Statements on Time
Failure to submit financial statements on time can result in significant consequences, including:
- Fines and Penalties: Companies may face fines ranging from HUF 200 000 to HUF 2 000 000 depending on the size and legal form.
- Legal Actions: Continued non-compliance can lead to the dissolution of the company by the Court of Registration.
- Striking Off: Persistent non-submission may result in the company being struck off the register, leading to a compulsory liquidation process.
8. Conditions for Foreign-Owned Branches and Newly Established Companies
- Foreign-Owned Branches: Must submit financial statements within 6 months after the fiscal year-end, similar to local companies. Additional obligations may include Hungarian translations if prepared in another language.
- Newly Established Companies: Generally follow the same reporting deadlines but must submit an initial report within 90 days of registration if operations commence immediately.
Sources
| Source | Link |
|---|---|
| Company Information & Electronic Company Registration Service — e-Beszámoló | https://e-beszamolo.im.gov.hu |
| Electronic Company Register (e-Cégjegyzék) | https://www.e-cegjegyzek.hu |
| Budapest Stock Exchange (BÉT) | https://www.bse.hu |
| Chamber of Hungarian Auditors (Magyar Könyvvizsgálói Kamara) | https://mkvk.hu |
| Start Companies Search | Order Credit Report |
Keywords
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