Building Strong Partnerships: Key Considerations for Setting Up a Joint Venture in Hungary
6 January 2023
A joint venture in Hungary succeeds when the partners translate their business plan into enforceable governance and exit rules. Hungarian practice usually favours a limited liability company (Kft.) for most projects and a private company limited by shares (Zrt.) for larger or investment-heavy ventures, but the vehicle is secondary to the quality of the shareholders’ agreement. This article concentrates on avoiding paralysis in a fifty–fifty ownership structure by designing specific decision rules, timed escalation, and credible exit outcome.