1. Foreign Investment in Hungary

2. Foundation of New Companies or Acquisition of Shares in Existing
Foreign Investment in Hungary
The Hungarian Act on Foreign Investment specifies that investments by non-residents enjoy full legal protection and security.
Foundation of New Companies or Acquisition of Shares in Existing
Companies by Foreign Investors
Foreign individuals and legal entities may found new
companies or acquire shares in existing companies in Hungary.
Wholly or partly owned foreign companies can operate in all
business areas.
Where the chosen activity requires a permit (e.g., for
banking activity) the same rules apply regardless of whether
the owners of the entity are residents in Hungary or abroad.

3. Four types of business associations may be established under the Companies Act
Unlimited Partnership (Közkereseti Társaság – Kkt.)
Limited Partnership (Betéti Társaság – Bt.)
Limited Liability Company (Korlátolt Felelősségű Társaság –
Kft.)
Company Limited by Shares (Részvénytársaság – Rt.);
In practice, most foreign investors are likely to form or take a financial interest in
a limited liability company (Kft.)
a company limited by shares (Rt.)
These legal entity forms correspond to the company forms most commonly used by businesses in the European Union.

4. Limited Liability Company (Kft
Limited Liability Company (Kft.) The Limited Liability Company is a very popular form of company for small or medium-sized businesses in Europe. The Hungarian Kft. form is very close to the German and Austrian GmbH (Gesellschaft mit beschränkter Haftung) and similar to the British Ltd (private company limited by shares). It is possible to establish a single-owner Kft. The Kft. form is the most common company form for wholly-owned subsidiaries. Company Limited by Shares (Rt.) A company limited by shares is the other popular corporate form for medium-sized or larger companies all over Europe. The Hungarian Rt. is very similar in form to the German and Austrian AG (Aktiengesellschaft) and similar to the British PLC (Public Limited Company).

5. Property Investments by Foreign Investors Possible Forms of Investment
Working Permission
As a general rule foreign persons can usually be employed in Hungary only if they hold a valid work permit and stay visa or residence permit.
Property Investments by Foreign Investors
Interest in property investment in Hungary has grown sharply in recent years.
Possible Forms of Investment
Use of a Hungarian subsidiary of a foreign company.
Use of a Hungarian branch office of a foreign company.
Direct investment by foreign individuals.

7. Three examples of international co-operation
Spar Commerce
Audi Manufacturing
Erste Banking

8. SPAR in Hungary
SPAR Hungary Ltd has actively been involved in the development of retailing and wholesaling in Hungary since 1991.
At the end of 2007, SPAR had total retail sales of ?1.13 billion and a market share in this highly competitive market of 10%. Store numbers totalled 204 and included 29 INTERSPAR hypermarkets and 20 large format EUROSPAR supermarkets.

9. Total selling area Sq Mtrs Average store size Sq Mtrs
Key Figures In 2007, SPAR worldwide had retail sales of €27 billion from outlets in 33 countries. Figures per country:
Country
Retail sales 2007 in € 000's
Retail store numbers
Total selling area Sq Mtrs
Average store size Sq Mtrs
Austria
4,500,170
1417
993,272
701
Italy
3,931,358
1950
853,291
438
U.K.
3,471,976
2557
365,600
143
S. Africa
2,911,680
772
745,224
965
Ireland
1,278,146
471
121,484
258
Norway
1,266,537
324
169,756
524
Spain
1,242,179
1617
422,934
262
Hungary
1,126,608
204
258,688
1,268
France
930,582
908
230,248
254
Total
27,217,567
13,510
5,659,190
419

10. Audi in Hungary
AUDI HUNGARIA MOTOR Ltd. was established in Győr in Subsidiary company with 1 million euros of equity capital of AUDI AG.
AUDI HUNGARIA MOTOR Ltd. produces almost all the range of AUDI engines. They also make engines for Volkswagen, Seat and Skoda.

11. Audi in Hungary
Audi TT Coupé has been assembled in Győr since TT Roadster sports cars came out in 1999.

12. Audi in Hungary Employees: about 5000
They produce more than 1.8 million engines a year, and assemble about 55 thousand vehicles.

13. Foreign employees in Hungary

14. Erste Bank
ERSTE BANK HUNGARY NYRT. is member of the Erste Bank Group; its mother institution is the Erste Bank Group AG - a well-known name on the Central-European banking market with a 180 years history in Austria.
The Austrian Erste Group entered the Hungarian market by purchasing the state-owned Mezőbank in Since its renaming to Erste Bank Hungary Rt. on 1 October 1998, the bank has provided full-range financial services for its retail and corporate customers.

15. Erste Bank Facts in Hungary
Costumers: 900,000
Branches: 196
ATMs: 388
POS terminals: 1700
Annual turnover: 2,500 billion HUF

16. Pápa Horváth Attila Prokoly István Tamás Kata Schimmer Renáta
Katavics Júlia
Léránt Dóra
Nagy Zsófia
February 2008