Our office has been providing legal and accounting support to business entities for more than 15 years, and we have successfully completed numerous simplified voluntary liquidations, including for foreign-owned companies operating in Hungary. We offer our clients full-scale management of the entire procedure, including the preparation of all tax returns and financial statements related to the liquidation.
What is simplified voluntary liquidation?
Simplified voluntary liquidation is a form of dissolution available to any business entity that
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is not subject to statutory audit, and
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is able to complete the liquidation within 150 days.
Accordingly, not only general partnerships (kkt.) and limited partnerships (bt.), but also limited liability companies (Kft.) and private limited companies (Zrt.) may be terminated under a simplified voluntary liquidation procedure.
Another important condition is that the company must not be insolvent. However, this does not mean that the company must be free of liabilities: in practice, in the vast majority of cases, existing obligations can be settled during the liquidation (for example through capital contributions by members, waiver of shareholder loans, or assumption of debt).
It is also available if the capital has not been fully paid in
The decision to initiate simplified voluntary liquidation is not prevented if:
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the registered capital (share capital) has not been fully paid in, or
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the company’s retained earnings are negative.
In many cases, this provides a genuine alternative for companies — including foreign-owned entities — that are no longer actively operating but whose legal status has not yet been properly settled.
Procedure of simplified voluntary liquidation
Decision and the liquidator
The initiation of the procedure is decided by the company’s supreme body, and the starting date of the liquidation must be determined at the same time (this date may not be earlier than the date of the decision).
In the case of a Kft., as a general rule, a 75% majority is sufficient to adopt the decision, unless the articles of association require a stricter majority.
One of the greatest advantages of simplified voluntary liquidation is that no separate liquidator needs to be appointed: the managing director automatically performs the duties of the liquidator as well. However, a person subject to disqualification may not act as liquidator; in such cases, a new managing director must first be appointed.
Due to the decision, no amendment of the articles of association is required, and no change registration procedure must be initiated at the court of registration.
Notification to the tax authority (NAV)
The decision on simplified voluntary liquidation and its starting date must be reported to the Hungarian Tax Authority (NAV) within 15 days of the decision, using form T201T.
Based on NAV’s notification, the court of registration automatically:
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records the status “under simplified voluntary liquidation” in the company register, and
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publishes the fact of the liquidation in the Company Gazette.
From the date of publication, creditors have 40 days to submit their claims.
Obligations during liquidation
Financial statements and tax returns
Within 30 days following the starting date of the liquidation:
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a closing financial statement for ongoing activities must be prepared, and
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the closing tax returns must be submitted (typically forms 08, 65, 71, and the final local business tax return).
During the liquidation period, continuous reporting obligations remain in force, even if the company no longer carries out economic activity. If returns are not submitted, NAV may impose default penalties directly on the liquidator.
Handling creditors’ claims
After the expiry of the 40-day deadline:
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the liquidator must prepare a register of submitted claims,
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distinguishing between acknowledged and disputed claims.
If any disputed creditor claim arises, the simplified voluntary liquidation cannot be continued, and the procedure must proceed under the general rules of voluntary liquidation.
Completion of the simplified voluntary liquidation
The procedure may be concluded in two ways:
Continuation of the company’s operation
The members may decide to terminate the simplified voluntary liquidation. This decision must be reported to NAV within 8 days.
Termination without legal successor (deregistration)
After the 40-day creditor deadline has expired, deregistration may be prepared, provided that the company has no outstanding liabilities.
The liquidator prepares:
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the final financial statement,
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the final tax returns,
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the asset distribution proposal.
The required documents must be submitted directly to the court of registration, while the final tax returns must be filed with NAV.
Why is it worth engaging professional assistance?
Simplified voluntary liquidation is a fast procedure, but it is subject to strict deadlines and complex legal and tax rules. A single missed tax return or formal error may result in the failure of the procedure or even personal liability.
Our office has been operating for over 15 years, and during simplified voluntary liquidation we:
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provide comprehensive legal and accounting administration,
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prepare all required financial statements and tax returns,
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manage communication with NAV and the court of registration,
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guide our clients — including international owners — through the entire process, from the decision to the company’s deregistration.
If you would like your company to be terminated quickly, safely, and lawfully, please contact us with confidence.
Dr. Szeiler & Partners Finance
Dr. Szeiler Legal