Rules of Company Naming in Hungary

The rules of name-giving regarding companies in Hungary

The first question when you decide to establish a company - either a joint stock company (Rt.), an Ltd. (Kft.) or a limited partenship (Bt.) - is the name of your future company.

This is maybe not the most important question, but relevant enough to expose the rules of the name-giving regarding companies. The name of the company has a value in marketing point of view and its another function is to distinguish our company from the other business associations.

Accordding to the Civil Code the name of a legal entity must differ from the name of another legal entities which have been already registered and their sphere of acitivity is the same or it is similar.

The principle of exclusivity serves the distinguishability of the companies. According to the the Companies Act the company which has already submitted its application  for registration to the Company Registry or has already reserved the name by the Company Registry has the right to use the name as the company name.

You can reserve the name of your company at the Company Court. This option can be relevant if two or more companies want to choose the same name.

The reservation of the name for your company is similar to the reservation of domain names. Although the reservation of the desired name lasts only for 60 days, in which period other companies can not be registered in the company registry with the reserved name and they are not allowed to reserve the reserved name. After the expiry of the 60 days period the name will be available again for other legal entites. 

According to the Companies Act the company does not have to indicate its main scope of activity in its company name, as it was the case until 2007. So the name of the company has to contain only the form of the company and the so called subject-heading.

The subject-heading stands in the first place of the company name. The subject-heading main function is to facilitate the identification of the company. The subject-heading can be a foreign word, an abbreviation or an acronym.

Besides the subject-heading the company name shall contain only Hungarian words according to the spelling rules of the Hungarian language.
Considering the above rules you can calmly choose your company name which you like and which fits your company’s business activity.

Budapest, July 2008

DISCLAIMER:
The information contained in this article is provided for general information only. Considering the nature of online advising is inadequate for all-around complete advising Dr. Andras Toth-Kalaszi Law Firm is no responsible for the on-line advices, and it's not amenable to any action.

Related Legal Articles - Company Naming in Hungary

Foundation of Business Associations in Hungary.

Establishment of Foundation in Hungary

About Limited Partnership in Hungary

Liquidation, Bankruptcy and Dissolution in Hungary

Arbitration Proceeding in Hungary

How to purchase Development Area in Hungary

Land Registry in Hungary

Building Constructions in Hungary

Rules of Renting Property in Hungary

Leasing Real Estate in Hungary

Neighbouring Rights in Hungary

Legal Articles Hungary Main Page