General overview of Hungary

The Republic of Hungary is situated in Central Europe and has borders with Austria, Slovenia, Croatia, Serbia, Romania, the Ukraine and Slovakia. On October, 17, 1918 Hungary gained its independence from the Austro-Hungarian Empire. First free elections were held in 1990 since World War II. Hungary became an associated member of the European Union in 1993 and applied for full membership in 1994. Hungary joined NATO in 1999. Hungary became a full member of European Union on May 1, 2004.

The official language is – Hungarian, the capital is Budapest.

Administratively, Hungary is divided into 19 counties. In addition, the capital (főváros), Budapest, is independent on any county government.M

Political Structure

Hungary is a parliamentary republic. Legislative power is exercised by a unicameral Parliament (National Assembly) (386 seats). The president is currently Pal Schmitt, and the prime minister is Viktor Orban.

Economy of Hungary

Hungary is a country with a rapidly developing economy. Having begun the transition to a market economy in 1970, now Hungary is a rather attractive country for foreign investments. The most important economic partners of Hungary are the countries of the European Union (about 80% of Hungarian export). The main foreign trade partners of Hungary are: Germany, Austria, France, Italy and the UK.  More than 200,000 companies and 700,000 private entrepreneurs have been registered in Hungary since 1989.

The currency of Hungary is the Hungarian Forint. As a member of the European Union, Hungary aims to adopt the Euro. However, the transition can occur no earlier than 2014. in a favorable economic situation. 

The largest bank in Hungary is OTP Bank. Other large banks, operating in Hungary are the following: 

• Allianz Bank
• Axa Bank
• Banco Popolare
• Bank of China
• BNP Paribas
• Budapest Bank (GE Bank)
• CIB (Bank of San Paolo)
• Citibank
• Commerzbank
• Deutsche Bank
• Erste Bank
• ING Bank
• Korean Development Bank
• K&H Bank
• MKB
• Raiffeisen Bank
• UniCredit Bank
• Volksbank

Legislation of Hungary

Hungary is a civil law jurisdiction, based on written laws enacted in accordance with the Constitution, which was rewritten in 1989. All major obligations and rights of corporations and citizens are based on Acts of Parliament. The Companies Act of 2006 regulates all legal forms of business entities.