How to stop forced liquidation at your Hungarian company

Forced liquidation in a nutshell

Your Hungarian company needs to be registered in the Company Registry and it needs a tax number. If the company’s operation does not comply with local regulations, the Tax Authority may cancel its tax number, which will lead to the company getting deleted from the Company Registry.

There are several steps that lead from non-compliance to getting your company deleted, and forced liquidation is just the last phase. From the first time the Tax Authority realizes that something is amiss, you will get several notices, giving you several opportunities and plenty of time to amend address the problems and stop forced liquidation from happening (or being completed). Additionally, letters from NAV typically list the reasons why the status of your Hungarian company is being under review, so you will know what to do. If you are not sure, ask your accountant for an explanation – if you are our client, ask your account manager.

Typical reasons for getting liquidated

For foreign-owned companies, the most common reasons for forced liquidation are the following:

1. No Hungarian bank account

Hungarian companies are required by law to have a HUF bank account at a Hungarian bank. This is because you are supposed to pay taxes from this account, and the Tax Authority can collect tax debts only from such accounts. However, opening a Hungarian bank account is not always possible right away because banks need to do strict background checks on foreign-owned businesses. For this period, opening a Revolut, Wise, or other fintech account offers a simple solution that will let you do business and pay taxes. Additionally, a healthy and active Revolut or Wise account can prove to banks that your business is valid and feasible, which will improve your options for bank account opening.

Unfortunately, a Revolut or Wise account in itself is not accepted for compliance with the legal requirement regarding bank accounts. The Tax Authority reviews every new company within a few months after company setup, and if they find out you are non-compliant, they will start a review procedure (“törvényességi felügyeleti eljárás”) and send you a notice thereof. From that point, you will have 30 days to open a HUF bank account at a Hungarian bank. If you succeed, all is good.

If you cannot comply within 30 days, the Tax Authority will move forward towards forced liquidation (which in fact may take 2-3 months). You will get a notice of when the ruling of forced liquidation comes into force, and then the ruling will be published in the Company Gazette (“Cégközlöny”), and the note “kt.a.” will appear next to your company’s name in the Company Registry (short for “under forced liquidation”, or “kényszertörlés alatt”). When that happens, you will not be able to remedy the situation anymore because no bank will open a bank account for a company under forced liquidation.

2. Missing monthly reports

Hungarian companies need to submit monthly, quarterly, and yearly reports to the Tax Authority. There needs to be a report even if there is no activity, which means you need an accountant from the first day of operation, even if you are only starting your activity gradually. If you do not want to hire an accountant while you do not have an activity, that can cost you your company.

The Tax Authority reviews every new company within a few months after company setup, and if they find out you are non-compliant, they will send you a notice with a deadline (typically 30 days). If you do not submit the missing reports by then, the tax number of your company will be canceled. Forced liquidation will be initiated, and once it is published in the Company Gazette, you have 90 days to reverse the process.

To stop the forced liquidation procedure, you will need to hire an accountant so they can submit the missing reports and request the Tax Authority to reinstate your tax number. (You might need to open an Ügyfélkapu or Client Gate account so you can open a Cégkapu or Company Gate account if you do not already have these.) Once you have your tax number back, you can submit another request to the Registry Court to stop the forced liquidation procedure, and pay the relevant fee (which is HUF 50,000 in 2026). For this, you will need a lawyer to represent you in front of the Court.

3. Other reasons

If your Hungarian company’s tax number was canceled or the forced liquidation was started for another reason, the reasons will be clearly communicated in the notices you get, alongside the deadlines by which you can remedy the situation. Discuss your options with your accountant as soon as possible.

Since forced liquidation is just the last step of a lengthy process, the steps you need to take will depend on where you are in that process. If you have only received notices from the Tax Authority, the help of an accountant or another expert might be enough to reverse the process, but if the forced liquidation is already announced, you will need a lawyer too. Once forced liquidation is published in the Company Gazette, you have 90 days to reverse the process.

When your company is under forced liquidation

When your company is being liquidated, you cannot perform any activity, you cannot make any modifications to it, and you cannot issue invoices. At the same time, if your company has debts, a windup procedure may be started, during which the company’s assets and share capital will be used to pay creditors. Forced liquidation itself also has a cost, which is HUF 250,000 in 2026. Additionally, owners and/or executives may be banned from Hungarian business operation for up to 5 years, depending on the amount of unpaid debts.

Helpers Finance at your service

Helpers offers both accountancy and virtual office services alongside business setup, ensuring that your Hungarian operation remains compliant with regulations. Official mail sent to your company seat is directly forwarded to your accountant as necessary, and whenever you need to take action, you will be given a short English-language summary, with steps to take.

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