Glossary

BGN

Bulgarian Leva

The current official currency in Bulgaria.

BULSTAT

Name of the Central Statistics Office in Bulgaria.

Bank account contract

A bank account contract is a financial management contract, whose primary function is to transact money circulation. Its parties are the credit institution on one hand and a business entity or other legal or natural person on the other. Based on such contract the credit institution is obliged to register and maintain the money on the bank account; to inform the owner of the bank account about the account balances and to fulfil the orders to the debit of the account yet the institution has right to use, utilize the amount on that account. The credit institution has free disposal of the created interest/ profit, there is no accounting obligation on those even when the contract is cancelled. The bank may also claim bonuses or its expenses. Domestic legal entities, business associations without legal entity are obliged to make bank account contracts as they are obliged to keep their monetary assets (except for the monetary assets that serve cash payment) on bank account and they are obliged to carry out the cash circulation via their bank account.

Bank account

Bankszámla

Bank account opened according to 6:391§ on the bank account contracts of the Hungarian Civil Code, and a financial claim against any credit institution irrespectively of the name and currency, that serves the fulfilment of the orders of the account holder for third parties or credited or debited on other accounts and based on the contract between the credit institute and its client.

CZK

Czech koruna

The current official currency of the Czech Republic.

Company formation

Managing all the legal tasks and administration for a company registration.

Company law

cégjog

Covers all official proceedings in company and business matters. Specifically: incorporation, company foundation, changes, dissolution procedures, liquidation and bankruptcy proceedings. It lists legal databases, acts, it suggests company foundation abroad, deadline monitor for finances and it covers other financial obligations of the companies in general.

Corporate tax

Társasági adó

Corporate tax (or company tax) is an income tax paid by a domestic or foreign legal entity, based on the income of the company activity, carrying out an activity for acquisition of property, or activity resulting such.

EOOD

еднолично дружество с ограничена отговорност

One person Limited Liability Company is a company form in Bulgaria.

EU VAT number

EU Adószám

Tax ID number issued after joining the European Union for companies who carry out commercial activity in the territory of the EU. It marks the origin country of the company and must be indicated on the invoices.

Euro

The member states of the European Union (except for Denmark, the United Kingdom and Sweden) have introduced the euro for the easier accounting towards one another in 1999, as an accounting currency but it has bank notes since 2002. Besides the Twelve, euro currency is used in Andorra, Monaco, San Marino, Vatican, and Slovenia since 2007, Malta and Cyprus since 2008, Slovakia since 2009 and Estonia since 2011.

Foreign currency

Valuta

Legal currency of a certain country but used in a different country.

Foreign exchange

Deviza

Credit or debit for foreign currency, cheque or money order issued for such claims. International means of payment. Instead of sending foreign currencies internationally which is risky and expensive (foreign currency = currency or cash of another country) payments are fulfilled mostly in currencies. Financial technical term from France.

GDP

gross domestic product

Gross Domestic Product, sum of the added value. Sum of materials and services at the final consumption in a given country in a given period (1 year). Consumption + private investments + governmental purchase + net export.

GNP

gross national product

Gross National Product or GNI (Gross National Income) by the latest terminology. Means: sum balance of each economic sector and the primary income from abroad and payments to abroad (wages, interests, land rents, dividends)

GmbH Light

Simplified Limited Liability Company is a company form in Austria, Switzerland and Germany.

GmbH

gesellschaft mit beschränkter haftung

Limited Liability Company is a company in Austria, Switzerland and Germany.

Head Office Service

Székhelyszolgáltatás

A formal office environment provided by a third party for companies. Law distinguishes the registered seat and the location of the central administration. Registered seat is a location where the administrative activity is carried out, this is the registered office. The location of the central administration is the place where the decisions are made, managing the company and administration is carried out here. If the registered seat is not where the location of the central administration is, it must be indicated in the incorporation documents.

Interest rate

The percent measures of the interest and the loaned money which is set for a defined period of time – normally for one year. So the interest rate shows a percentage of the loaned money to be paid as interest for each period.

KFT

Korlátolt Felelősségű Társaság

The most common company form in Hungary which starts up with a share capital made of shares of a certain value, and where the members’ liability covers only the capital contributions they paid themselves. Yet in case of the creditors’ damage the managing director’s liability covers all the company debts unlimitedly.

KG

Kommanditgesellschaft

Limited Partnership is a company form in Austria, Germany and Switzerland.

KSH

Központi Statisztikai Hivatal

Central Statistical Office

LLC

Limited Liability Company

An LLC is a business entity created under state law that can shield you from personal liability. LLCs are becoming the most popular way to start a business due to their ease and flexibility.

LLP

Limited Liability Partnerships

A limited liability partnership, or LLP, is a company form designed for partners who want a voice in managing their firm, but do not want to share liability. Generally speaking, a partner in an LLP is not responsible for the debts or liabilities of the other partners.

LP

Limited Partnerships

A limited partnership, or LP, is a partnership of one or more general partners, who manage the business, and one or more limited partners, who invest in the partnership but do not manage it. Unlike partners in a general partnership, limited partners in a limited partnership have limited liability.

LTD

Private Company Limited by Shares

This is by far the most common type of company. Its members or signatories (shareholders) limit their liability (should the business run into trouble), to the value of their shares. Profits can be reinvested in the company or transferred to shareholders in the form of dividends. ‘Private’ means the company is owned privately and it cannot offer membership (shares) to the public.

OOD

дружество с ограничена отговорност

Limited Liability Company is a company form in Bulgaria.

PIT

Personal Income Tax

Personal Income Tax is a tax levied on private persons for their income.

PLN

Polish Zloty

The current official currency of Poland.

Ptk

Polgári Törvénykönyv

A Polgári törvénykönyv egy polgári jogi kódex, amely a mellérendeltség és egyenjogúság elve szerint szabályozza a személyek alapvető vagyoni és személyi viszonyait. Szabályozza a civil és a gazdasági tevékenységeket.

Ready Made Companies

Eladó kész cégek

Not operating companies kept in the drawer, ready to use immediately.

SKK

Slovak crown

The current official currency of Slovakia.

SLP

Scottish Limited Partnerships

A Scottish Limited Partnership. It has been around for over a century, the SLP has been used in recent times for modern business purposes such as private equity and property investment fund structures.

SPZOO

Spółka z ograniczoną odpowiedzialnością

Company form in Poland where the members have limited liability. Members are not liable with their full property over the company.

SRL

Societate cu Raspundere Limitata

Limited Liability Company is a company form in Romania.

SRO

Spoločnosť s ručením obmedzeným

Limited Liability Company is a company form in Slovakia and Czech Republic.

SZJA

Személyi Jövedelem Adó

Personal Income Tax is a tax levied on private persons for their income.

Specimen signature

The specimen signature serves the identification of the signature image of the officers who represent an institution or company. This is an important security so no other person can represent the corporation or can undertake commitments on behalf of the corporation but the one person named by the corporation. To make a specimen signature you need to visit a public notary with the court decree about the registration and the instruments of the incorporation. The public notary shall issue one (or more, depending on your request) specimen signature to identify the signature image of the representatives who represent the corporation (chairman, deputy chairman and/ or clerk). The specimen signature is necessary for opening a bank account but later it can be requested when submitting tenders, or for making sponsorship contracts.

Tax

Adó

A payment prescribed by the state, main income of the state budget. There is no direct consideration for the tax payer that’s why it is a significant deficit for the tax payer’s costs, expenses and taxed income. Therefore taxes are basic tools of the budget (fiscal) policy, fitted to the system of the state budget. Most of the taxes make influences on the prices of the final products, services and production factors and therefore on the whole structure of the households’ consumption, combination factors used by the companies. The government has influence on the private expenses and private demands via taxes. There are two sort of taxes: direct taxes and indirect taxes. Their extent depend on the tax rates which may be progressive, linear or degressive.

Transfer order

Átutalási megbízás

An order from the owner of the bank account to the credit institution to transfer an amount of money from his account to a recipient account he named.

Primary stake

Törzsbetét

The primary stake is the monetary contribution of a member to the capital of the company (capital stock). The capital contribution of the members may differ in terms of value, however, the amount of each contribution may not be less than one hundred thousand forint.

Capital stock

Törzstőke

The capital stock (registered capital) is part of the capital, which is provided by the owners without time limit at the time of the foundation or at the time of the increase of the capital stock in order to achieve membership rights or ownership stakes or to increase the existing shares.

VAT

Áfa

The VAT in Hungary is a multiphase, net form of taxation which is to be paid at each phase of the production and the trade, based on the added value. Yet the final tax is paid by the final consumer. The VAT might be only one phase in other countries where the VAT is paid only once over a product in particular. The whole purpose of the VAT is to create a consumer proportionate, competitively neutral tax, that shall increase the state income.