Mandatory Firm Portal registration (Cégkapu) – to whom, how and until when?
In the beginning of the next year, the so-called Firm Portal service starts operating; this is considered as the “brother” of the well-known Citizen Portal, just for companies. The new system was implemented to provide direct connection between business organizations and the government.
In this short summary, we will provide some guidance and information regarding the registration process.
Probably the most important question – who will be affected?
According to the definition of business organizations in 2015’s CCXXII. law (E-administration law), the Firm Portal registration is mandatory to every business organisation who have domestic residence. Therefore, it will not applying to the ones who only have VAT registration. Those who operate as sole proprietorship will still have to take care their business administration via Citizen Portal.
What is its function?
From the beginning of next year, the business organizations have to be in touch with the government electronically. After 2018.01.01 the organizations can only send official forms and documents via Firm Portal and the authorities only communicate with them via Firm Portal too. The contact details of the Firm Portal must be shown in the company register.
Until when and how to register?
The deadline for the Firm Portal registration was originally 2017.08.30 but there is a cooling-off period until the 31st of December, so there is not going to be any penalties imposed because of missing the deadline.
If there is no registration until the end of the year, the companies who did not register should expect receiving fines because their violation.
Practically the registration means the announcement of the Firm Portal. First, an e-mail address is needed and it is worthy to check the inbox on a daily basis. It is recommended to create an e-mail address just for this purpose (for example: firstname.lastname@example.org). Secondly, identification must be done which easiest way if the CEO does it via his/her Citizen Portal and after that only the details of the business organisation are needed. Eventually there is an opportunity to pick some employees who have access to check the mailbox, but cannot do anything in the name of the company.
What to do if the CEO is foreigner?
The 451/2016. (XII. 19.) government regulation’s 89. § (2) clearly states that “In the name of a business organisation, only the natural person who has the right to represent the company can initiate the Firm Portal registration”. Therefore, it is obvious that neither an accounting company nor a tax advisory company cannot initiate the registration, only the ones can who have the right to represent the firm irrespectively of their nationality.
If you have any other questions about the Firm Portal or you would need further information about the registration and the process of it, please contact us our experts are glad to help!