Hungary is set to overhaul its Companies Act, with the changes coming into effect this summer. The New Company Act (NCA) will repeal the 1997 Old Companies Act (OCA) from 1 July, 2006. Existing companies or those for which registration is pending prior to 1 July, 2006 will have a moratorium until their general meeting, but at the latest until 1 September, 2007 to modify their articles of association in accordance with the NCA. Until modification of the articles, such companies may operate under the OCA. Lack of compliance with the deadline will trigger automatic loss of the company and cancellation from the corporate registry.
The current procedural rules will be entirely replaced. One of the novelties of this Act is that simple companies may be established on the basis of stand-ardised documents within two business days.
