Egyéni vállalkozó

When someone decides to go into business, they have different options, they can choose various business vehicles /trading vehicles (gazdálkodó szervezetek), depending on whether they intend to conduct business as a natural person (természetes személy) or as a legal entity (jogi személy).

This week we are going to learn about the different types of business vehicles from the sole trader to the public limited company, and what needs to be done to form / establish  (alapítani) them.

Sole tradership / Sole proprietorship (egyéni vállalkozás) is a type of business vehicle that is owned, controlled and managed by one individual and in which there is no legal distinction between the owner and the business. It does not have a legal personality separate from its owner, which means that sole traders / sole proprietors (egyéni vállalkozók) are personally liable (személyesen felelős  / személyes helytállásra kötelezett) for the debts of the business,  have unlimited liability (korlátlan felelősség / korlátlan helytállási kötelezettség) and, at the same time, they receive all profits (subject to taxation specific to the business). Every asset (eszköz, vagyontárgy) of the business is owned by the sole trader.

In certain countries, sole traders may start trading immediately and do not need to register (bejegyez, nyilvántartásba vesz) as a business. The only requirement is that a sole trader must register as self-employed (önfoglalkoztató) with the tax authority.