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Modifying share capital of a Hungary company

Changing the share capital of a company involves altering the makeup and organization of the shares that have been issued. If your company wishes to adjust its share capital, our experts will assist you throughout the entire process.

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Assistance for share capital changes

Comprehending and handling changes in share capital is an essential part of a company’s financial structure. Various forms of share capital reflect distinct phases and obligations from shareholders. We provide support for different types of share capital changes, making sure they align with compliance requirements and your business objectives. Below are the various types of share capital we can help with:

Authorized share capital

Authorized share capital, often referred to as registered capital, represents the highest amount of capital a company is permitted to raise through the issuance of shares. We assist you in understanding the regulations and procedures required to modify your authorized share capital when necessary.

Issued share capital

Issued share capital denotes the segment of the authorized share capital that has been allocated to shareholders. We offer assistance regarding the consequences and processes involved in issuing new shares or modifying existing ones.

Subscribed capital

Subscribed capital refers to the part of the issued share capital that shareholders have pledged to acquire. Our specialists help in overseeing subscription agreements and maintaining precise documentation of shareholder commitments.

Paid-up share capital

Paid-up share capital refers to the part of the subscribed capital that shareholders have completely paid. We assist you in monitoring payments, handling installments, and keeping accurate financial records.

Called-up capital

Called-up capital refers to the sum of money that the company has asked shareholders to contribute for their subscribed shares. We assist you in efficiently handling payment calls, making sure that financial transactions are conducted accurately and on time.

Our approach

Changing share capital in Hungary can be a difficult and time-consuming task, necessitating careful attention to documentation and legal requirements. Our team of experts is available to assist, making sure that each stage of the process is seamless and hassle-free.

Understanding your needs

Our specialists start by fully grasping your specific needs. We dedicate time to hear about your objectives, challenges, and any particular targets you envision. This essential initial step guarantees that our strategy is in harmony with your vision.

Legal compliance and analysis

Our team remains informed about the most recent regulations and has a thorough understanding of Hungary’s legal framework. We carry out an in-depth evaluation of your business situation to guarantee that all our actions align with the applicable legal standards.

Customized strategy development

Our analysis leads us to create a customized strategy that corresponds with your business goals. Whether you are undertaking a capital reduction or executing a share buyback, we utilize our knowledge to formulate a plan that optimizes efficiency and reduces potential risks.

Documentation and filing

Our specialists aid in creating and examining all necessary legal documents. We carefully verify that the paperwork complies with all legal standards, allowing you to save time and effort while avoiding any possible legal complications.

Liaising with authorities

We take care of all communication and coordination with the appropriate authorities in Hungary for you. This involves overseeing filings, submissions, and engagements with the Hungarian authorities to make sure that all processes are carried out correctly.

Post-transaction compliance

Once adjustments have been made to your share capital, there might be continuous compliance obligations. Our specialists assist you in comprehending and fulfilling these requirements, making certain your business stays compliant with all applicable regulations.

Strategic share capital management

When contemplating adjustments to your organization’s equity stake, it is essential to explore all available options and possibilities. Our team, well-versed in the intricacies of capital changes, can guide you through the following routes while providing recommendations and support at each step.

Increasing share capital

Increasing equity is a wise strategy for enhancing the company’s liquidity. Our experts assist you in determining the most effective approach, whether that involves issuing new shares, converting loans into capital, or employing alternative methods.

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Decreasing share capital

In specific situations, a company might find it necessary to reduce its capital investment. Our experienced team can assist you in examining the options that are available, including share buybacks, capital reductions, or the cancellation of shares.

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Share buybacks

The specialists assist you in understanding the complexities of share buybacks, covering aspects such as adherence to legal standards, the creation of buyback contracts, and the execution of the transaction. We aid you in managing the challenges associated with obtaining shareholder approvals, completing regulatory submissions, and fulfilling reporting duties, guaranteeing a successful and compliant buyback process.

Convertible instruments

The team helps you design and carry out convertible instruments, whether they are in the form of convertible bonds, notes, or other financial tools. We offer thorough guidance on the legal and regulatory considerations, ensuring adherence to regulations and a seamless conversion process.

Transfer share capital

The process of transferring share capital requires meticulous planning and compliance with legal standards to ensure everything proceeds smoothly and correctly. Our team offers knowledgeable assistance regarding the different ways to transfer shares, including direct sale, gift, or inheritance. We take care of all essential paperwork and communicate with the appropriate authorities to ensure a hassle-free transfer, making sure that all legal and financial responsibilities are fulfilled.

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Specialized solutions for different legal entities

Our tailored solutions address the specific needs of different legal entities in Hungary. Regardless of whether you are adjusting share capital for:

We modify our approaches to align with the unique legal and financial complexities of your business structure. This guarantees a smooth and compliant procedure for altering the company’s share capital, tailored to the requirements of your entity. Rely on our experience to address the specific challenges associated with your business type, delivering a streamlined and efficient wind-up process.

Book a consultation

Prepared to advance in adjusting your company’s share capital? Arrange a consultation with our expert team to explore your unique requirements and objectives. We provide tailored support and strategic counsel to guarantee that your share capital modifications are carried out smoothly and in accordance with Hungarian regulations. Reach out to us today to take advantage of our vast experience and dedication to the success of your business.

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