No business can operate without a registered office service – or registered office – but with the former it is much simpler – we show you the details!
A registered office service provider is an entrepreneur who, as a business activity, on behalf of the taxpayer, ensures the receipt of business and official documents during working hours, their registration, safekeeping, availability, as well as the fulfillment of obligations related to the registered office, in particular the toleration of official enforcement measures related to the client’s registered office and company documents.
One of the most important conditions of registered office service is that the registered office service provider must enter into a written mandate agreement to carry out its activities, which can only be for an indefinite period, unless the client is also established for a fixed term.
As a result of the mandate agreement, the registered office service provider provides the client’s registered office, however, the client does not actually use the property and does not fulfill the legal obligations related to the registered office.
Registered office, place of business, and branch office
- The company’s registered office is the company’s registered office, which is also the company’s mailing address, and must be marked with a company sign. The company’s registered office may also be the place of central administration, but if this is not the case, it must be indicated in both the deed of foundation and the company register. For the purposes of company proceedings, the Hungarian branch of a foreign company, the direct commercial representation of foreigners, and the place of business of a European Economic Interest Grouping also qualify as a registered office.
- The company’s place of business is a place for carrying out activities involving permanent establishment as specified in the deed of foundation, which is located in a different place from the company’s registered office.
- The company’s branch office, on the other hand, is a place of business that is in a different municipality or country than the company’s registered office.
A company’s registered office, place of business, and branch office may be a property owned by the company or which the company is entitled to use – that is, it has used the registered office service.
It is important that if a company has a place of business or branch office, it must also be indicated in the company register!
How does a branch office and place of business differ from a registered office?
The place of business is located in the same municipality as the registered office, but is not the registered office; the company carries out permanent business activities here. If the company also has a place of business in addition to the registered office, its address must also be indicated in the company register.
The branch office, on the other hand, is located in a different municipality from the company’s registered office, and its address must also be indicated in the company register. If a company has both a registered office and a branch office, the local business tax must be paid divided between the municipalities of the two settlements.
Both the branch office and the place of business can be any property, but it must either be owned by the company or the company must have the right to use it.
The process of using registered office service
The use of registered office service must be reported to the NAV, and the notification must be made by the party using the service. It is important that sole proprietors and taxpayers subject to company registration must complete different forms for this purpose; the former must complete form T101E, while the latter must complete form T201T.
Such notification must only be made if there is a change in the area of registered office service, namely
- if a contract for registered office service is newly concluded,
- if a previously concluded and reported contract is terminated, or
- if something changes among the reported data.
In such cases, the notification must be made within 15 days of the change, however, in the case of sole proprietors, this must be done simultaneously with the registration of the business.
If you need more information, or if you would like to use our registered office service, please contact us with confidence at one of our contact details!
