What shall a foreign company take care of when entering into a contract with a Hungarian company?

According to the statistics of the German-Hungarian chamber of commerce and industry, it is quite obvious that in the last decades the business relationship has immensely strengthened between Germany and Hungary. Introduction From 2000 until 2014 the import between the two countries has grown from 10.000 million euros to approximately 19.000 million euros as well as the export which has increased from 10.000 million euros to 22.000 million euros (source:…

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Which circumstances shall be considered when buying an apartment in Hungary?

1. Check the land registry sheet carefully. You (or your attorney) have to examine, if there are any encumbrances registered concerning the apartment. If so, you shall agree with the seller about the procedure how to cancel the encumbrances. 2. Undersigning the sale and purchase agreement (S&P): There are two options when you conclude the S&P agreement. a./ Either you undersign it in Hungary, in front of the attorney at…

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Business Immigration to Hungary

When it comes to arriving to Hungary and applying for a residence permit, the legal regulations allow a special type of permit: the residence permit for the purpose of employment or other gainful activities (“Business Immigration”). Hungarian regulations According to Act II of 2007, third-country nationals have the right to apply for a residence permit of such kind in three cases. The first option is if they perform actual work…

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Undersigning Attorney Agreement Abroad

Undersigning an attorney agreement which was drafted in another country equals to the situation when an official document is to be used abroad. If someone resides in a different country than the attorney whom he wishes to sign an attorney agreement with, he can also do it in the country of residence, given the condition that it occurs before a public notary. The use of such documents abroad only constitutes…

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Civil Litigation in Hungary

In case a dispute concerning a civil matter occurs and subsequently no settlement is reached between the parties, most of the times the issue will be dealt with before the competent court pursuant to the rules laid down in the Civil Procedure Act. Courts In Hungary currently there is a four-tier court system: there exist more than a hundred district courts which deals with cases concerning for instance family law,…

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Sale and Purchase of Properties in Hungary

In Hungary the devolution of property when it comes to land and a building on it, contains two major steps. Written and countersigned sale and purchase agreement: First of all a written sale and purchase agreement has to be drafted and signed by the parties. There are a number of obligatory elements and formalities which the seller and the purchaser have to comply with. The contract has to be countersigned…

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Concept of the Takeover Directive

The Takeover Directive sets out minimum requirements for the conduct of takeover bids for individual Member States, including disclosure, involving securities with voting rights of companies governed by the laws of Member States, where all or some of these shares are admitted to trading on a regulated market. Main points of the Takeover Directive The framework means that supervisory agencies are appointed to review and approve the proposed takeovers. Each…

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