What to think about before starting a business?

In the following post, we give you ammunition for planning and thinking about the Kft. (similar to LTD or LLC in meaning), LP or other forms of business. If you follow these steps through, it will be much easier to book an appointment with a lawyer and prepare the documents you need to file to incorporate.

1. Activities of the company
   1. Your company can take on more than one of these activities

2. Determining the type of business– it depends on the turnover and the activity!

Make a plan on paper (even by hand):

1. Annual expected turnover (calculation only)
2. Costs (for start-ups, accounting costs, bank costs, possibly wage costs with contributions)

Based on these, you can think about whether you want to start a Kft. (similar to LTD or LLC in meaning), Bt. Or any other form of business.

3. Defining a company name
   1. Generally, the best way is to come up with a company name that is in line with your business, of which you should have at least 3 before you start
   2. Important: the chosen name should differ from existing company names by at least 3 characters, but if you have at least 3 ideas for a company name before you start your business, you will almost certainly have a registrable company name.

4. Discuss accounting issues with your accountant
   1. You should think about with your accountant filling in the following declaration for the NAV based on the above information.
   2. In all cases, the following conditions should be discussed with your accountant before incorporating the company:
      1. Tax form?
      2. Does the manager perform its duties on a contract or an employment contract?
      3. How, when and how much share capital is paid in?
      4. Choice of TEÁOR (adapted to the activity)
      5. Are other licences or qualifications required for the activity?

5. Locations, property required for registration
   1. Determination of registered office, which is the mailing address of the company
   2. Establishment/Branch determination, which is a function of the activity, which requires an acceptance statement from the owner

6. Establishment of an email address, which will also be registered with the Companies Registry

All correspondence from NAV, Companies Court will be sent here. It is important that this email address is public (anyone can access it) and that you use it!

If all of the above is established, the incorporation will go smoothly, and our experienced incorporation lawyers will help you with the rest!