Business Reforms in Hungary
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Paying Taxes: Hungary made paying taxes less costly for small and medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings.
Enforcing Contracts: Hungary made enforcing contracts easier by introducing an electronic filing system.
Labor Market Regulation: Hungary amended legislation to remove restrictions limiting the operating hours for retail shops.
Labor Market Regulation: Hungary adopted legislation limiting the operating hours for retail shops.
Starting a Business: Hungary made starting a business more difficult by increasing the paid-in minimum capital requirement.
Getting Credit: Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry.
Paying Taxes: Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been temporarily introduced in 2010 and by reducing the vehicle tax rate.
Labor Market Regulation: Hungary reduced the premium for night work and weekly holiday work and increased the minimum wage.
Starting a Business: Hungary made starting a business more complex by increasing the registration fees for limited liability companies and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry.
Getting Credit: Hungary improved access to credit information by passing its first credit bureau law mandating the creation of a database with positive credit information on individuals.
Paying Taxes: Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary increased health insurance contributions paid by the employer.
Trading across Borders: Hungary reduced the time to export and import by allowing electronic submission of customs declarations and other documents.
Getting Credit: Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for retaining data on defaults and late payments (if repaid) from 5 years to 1 year.
Paying Taxes: Hungary made paying taxes costlier for firms by introducing a sector-specific surtax
Dealing with Construction Permits: Hungary implemented a time limit for the issuance of building permits.
Registering Property: Hungary reduced the property registration fee by 6% of the property value.
Paying Taxes: Hungary simplified taxes and tax bases.
Resolving Insolvency: Amendments to Hungary’s bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy.
Starting a Business: Hungary made starting a business easier by implementing online registration, with registration confirmed 1 hour after application.
Starting a Business: Hungary made starting a business easier by reducing the minimum capital requirement, introducing online filing and publication and making the use of notaries optional.
Registering Property: Hungary established a new registry office in Budapest, which speeded up property registration by reducing the time required to register a title.
Starting a Business: Hungary made starting a business easier through a new company act and corporate procedure act introducing standardized forms, a “silence is consent” rule and electronic registration.
Registering Property: Hungary made property registration faster by opening a second land registry office in Budapest, which reduced the time required to submit an application to the land registry and to register the title.
Paying Taxes: Hungary made paying taxes more costly for companies by increasing the health insurance contribution rate.
Resolving Insolvency: Hungary enhanced its insolvency process through an amendment to its bankruptcy legislation granting secured creditors priority over their pledged security.