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Banking challenges in Hungary

Sometimes running a new company becomes a nightmare due to the lack of a bank account. In the absence of a bank account, it is not possible to receive the income, it is not possible to pay bills, wages, taxes. But what is the reason for this and how can we avoid it?

Legal regulations

On the one hand, every Hungarian company must have at least one Hungarian bank account within 14 days after the registration. This is checked by the court of registration and it also appears among the company's public data. Although it is not mandatory to use this account in day-to-day operations, as a company may now have bank accounts abroad, which need to be reported to the tax authorities.

Operation of banks

However, nothing obliges banks to serve corporate customers. They are free to decide whether to grant or refuse an account opening request in accordance with their own internal policies. The rejection usually affects new businesses owned by one or more foreign individuals. Banks usually do not provide any information on the reasons for the rejection. However, when they did, we learned the following:

 1. It is considered risky if a new company is owned by foreign individuals who do not have a Hungarian address or any other connection to Hungary.
 2. The use of legal address providers instead of a leased office also involves risks.
 3. Citing the strict transparency and anti-money laundering rules of the national bank, they do not dare to open an account for some companies to avoid problems with their supervising authority.
 4. Some activities are also considered risky by banks, but this does not only apply to companies in foreign ownership.


Unfortunately, the court of registration does is not touched by these reasons, they still request the opening of the accounts, or they start the deletion process of the company.

What can we do?

Although these answers raise new questions for us, for example, about equal opportunities within the European Union, unfortunately we can do nothing about the internal policies of the big banks. Therefore, the above aspects need to be taken into account, and we need to find solutions for start-ups within this framework. The best solution starts consulting with experts before you set up your company.

If you need further information, feel free to contact us.
04.02.21


Author:   

Ákos Eőry

Ákos Eőry

Managing Director

Mobile: +36 70 621 7595

Skype:eoryakos
Email: akos.eory(at)leinonen.hu

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