Hungarian legislative provisions are fundamentally harmonised with European law. The Civil Code of Hungary regulates the most important areas of private law, including the relationships among natural persons as well as legal persons. It contains the basic provisions governing different areas of business life, such as the formation, performance and termination of contracts, or collaterals and guarantees.
From 15 March 2014 the new Civil Code (Act V of 2013) regulates the formation, organisation and operation of companies with a registered office in Hungary, as well as the rights, obligations and liabilities of the founders and members of companies. Business associations may take the company forms of limited partnerships (Bt.), limited liability companies (Kft.) and companies limited by shares (Rt.).