As a result of the amendment of Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings, from 1 July 2018 any company can opt for a simplified voluntary liquidation in Hungary, not only entities without legal personality, if they are not subject to an audit and the voluntary liquidation can be completed within 150 days. In light of the reduced and faster administration, our experience shows that more and more companies are making use of this opportunity.
NAV must be notified
A voluntary liquidation – as in the case of a standard voluntary liquidation – commences upon the decision of the company owner specifying the start date of the simplified voluntary liquidation. The start date may not be earlier than the date of the owner’s decision. In the event of a simplified voluntary liquidation, however, there is no need to appoint a liquidator, the senior executive performs this role.
The National Tax and Customs Administration (NAV) must be informed about the start of a simplified voluntary liquidation process within 15 days by submitting form T201T. It is recommended to attach the owner’s decision on the simplified voluntary liquidation to the form. Though this is not mandatory, it can accelerate the administration. The NAV has 30 days to process the form and they inform the Court of Registration automatically about the start of the simplified voluntary liquidation. The Court of Registration arranges the publication of the notification regarding the simplified voluntary liquidation in the Company Gazette. Creditors have 40 days from the date of the publication to submit their claims.
Besides the NAV, the local government and the account-holding bank must also be informed about the initiation of the simplified voluntary liquidation. It is important to note that the bank account cannot be closed until the company is deregistered.
The report and tax returns on the termination of the activity must be prepared and submitted within 30 days following the start of the simplified voluntary liquidation.
Completing the simplified voluntary liquidation using document templates
The simplified voluntary liquidation may not be completed until the 40-day period provided for creditors to submit their claims has expired. Then the voluntary liquidation must be completed and the reports and tax returns finalising the voluntary liquidation must be prepared and submitted within 60 days, but no later than within 150 days. The NAV must also be informed about the completion of the voluntary liquidation by submitting form T201T.
At the same time the company must notify the Court of Registration about the end of the simplified voluntary liquidation using document templates and submit the recommendation for the distribution of assets and the final voluntary liquidation decision.
Within 30 days of the notification about the completion of the procedure the NAV informs the Court of Registration if there are any reasons against deregistering the company. If not, the Court of Registration deregisters the company.
Broadening the possibility of conducting a simplified voluntary liquidation is primarily aimed at reducing the costs and administrative burdens related to voluntary liquidations. However experts are still needed to arrange the procedure itself and prepare the documents prescribed by law. Using the synergies within our group and in cooperation with our lawyers, the accounting consultants of WTS Klient will gladly help if you decide to opt for this procedure to terminate your company.