The scopes of activity have been changed in the purpose of the economical protection of companies based in Hungary
In its former professional article Kapolyi Law Firm has elaborated in detail the provisions of the act on the cessation of the emergency and the destiny of regulations issued during this period published on the 17th of June 2020 (Mixing-Act; Act LVIII of 2020 on transitional rules related to the cessation of the emergency and epidemiological preparedness) related to the rules on the validity of specific transactions in the so called strategic companies (by virtue of contract, unilateral declaration or a resolution permitting: the transfer of ownership free of charge or for consideration; capital increase; transformation, merger and division of the company; the issue of bonds to be converted, bonds holding subscription right or convertible bonds; establishment of usufruct rights on shares, business quota) on the required notification to the Minister for the Economy (the Minister), and on the Minister’s acknowledgement. The Mixing-Act is supplemented by the Government Decree (VI. 17.) Nr. 289/2020 on the definition of the scopes of activity required for the economic protection of companies established in Hungary (TEÁOR Decree) which has been modified in these days. The changes are marked in red in the summary table below for easier handling.
Sectors and their changes (in red) specified in the TEÁOR Decree
| Number | Sector | NACE Serial | Subsector |
| 1 | Chemical sector | 19 | Manufacture of coke and refined petroleum products |
| 20 | Manufacture of chemicals and chemical products | ||
| 21 | Manufacture of basic pharmaceutical products and pharmaceutical preparations | ||
| 2 | Commercial facilities
|
45 | Wholesale and retail trade and repair of motor vehicles and motorcycles |
| 47 | Retail trade, except of motor vehicles and motorcycles | ||
| 46 | Wholesale trade, except of motor vehicles and motorcycles | ||
| 3 | Communication sector | 61 | Telecommunications |
| 4 | Essential industry sectors (including
electronics, mechanical engineering, steel production and manufacture of transport equipment) |
26 | Manufacture of computer, electronic and optical products |
| 27 | Manufacture of electrical equipment | ||
| 28 | Manufacture of machinery and equipment n.e.c. | ||
| 29 | Manufacture of motor vehicles, trailers and semi-trailers | ||
| 30 | Manufacture of other transport vehicles | ||
| 24 | Manufacture of basic metals | ||
| 25 | Manufacture of fabricated metal products | ||
| 5 | Defense industry | 254 | Manufacture of weapons and ammunition |
| 304 | Manufacture of military fighting vehicles | ||
| 6 | Dams | 4291 | Construction of water projects |
| 7 | Energy sector | 35 | Electricity, gas, steam and air conditioning supply |
| 8 | Emergency facilities | 8422 | Defense activities |
| 8424 | Public order and safety activities | ||
| 8425 | Fire service activities | ||
| 9 | Food sector and agriculture | 10 | Manufacture of food products |
| 11 | Manufacture of beverages | ||
| 12 | Manufacture of tobacco products | ||
| 1 | Crop and animal production, hunting and related service activities | ||
| 2 | Forestry and logging | ||
| 3 | Fishing and aquaculture | ||
| New! 6820 | Renting and operating of own or leased real estate – exclusively in the event that this activity is exercised also in respect of lands under agricultural and forestry utilization pursuant to Section 5, Clause 17 of Act CXXII. of 2013 on the trade of agricultural and forestry lands | ||
| 10 | Government facility | 84 | Public administration and defence; compulsory social security |
| 11 | Health sector | 86 | Human health activities |
| 87 | Residential care activities | ||
| 88 | Social work activities without accommodation | ||
| 12 | Information technology | 62 | Computer programming, consultancy and related activities |
| 63 | Information service activities | ||
| 13 | Nuclear sector | 2446 | Processing of nuclear fuel |
| 14 | Building industry | 41 | Construction of buildings |
| 42 | Civil engineering | ||
| 43 | Specialized construction activities | ||
| 15 | Water supply, sewerage services | 36 | Water collection, treatment and supply |
| 37 | Sewerage collection and treatment | ||
| 16 | Waste management | 38 | Waste collection |
| 39 | Remediation activities and other waste management services | ||
| 17 | Building materials industry | 81 | Quarrying of stone, sand and clay
|
| 23 | Manufacture of other non-metallic mineral products | ||
| 18 | Transport, Transportation, logistics | 49 | Land transport and transport via pipelines |
| 50 | Water transport | ||
| 51 | Air transport | ||
| 52 | Warehousing and support activities for transportation | ||
| 53 | Postal and courier activities | ||
| 19 | Manufacture of medical devices | 325 | Manufacture of medical devices |
| 20 | Tourism | 55 | Accommodation |
| 56 | Food and beverage service activities | ||
| 21 | Administrative and support service activites | 782 | Temporary employment agency activities |
| New! 22 | Raw materials of critical importance | 5 | Coal mining |
| 6 | Extraction of crude petroleum and natural gas | ||
| 7 | Mining of metal ores | ||
| 8 | Other mining and quarrying | ||
| 9 | Mining services |
The regulation sets forth the mandatory legal representation, nevertheless, in many cases, even during the planning phase of transactions questions may arise as to whether they are bound by the notification obligations provided by the regulation.
Kapolyi Law Firm, a law firm recognized in the Hungarian capital markets with over two decades of experience fully supports the compliance of the specified legal transactions with the new provisions.
