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.