KFT. és ZRT.

A private limited company (korlátolt felelősségű társaság – kft, zártkörű részvénytársaság – zrt.) is a type of business entity in which the members/shareholders (tag, részvényes) have limited liability and the shares (üzletrész, részvény) of which may not be offered to the general public, unlike those of a public limited company. The name of the private limited company has to end with ‘ltd’ or ‘limited’ in order to clearly indicate what type of company it is.

The liability of the shareholders towards the creditors (hitelezők) of the company is limited to the capital they originally invested, i.e. the authorised share capital (jegyzett tőke – törzstőke, alaptőke). A shareholder’s personal assets are thereby protected in the event of the company’s insolvency, but the money invested in the company will be lost.

A private limited company can have any number of shareholders. However, it is very common to have a private limited company with just one shareholder: such a company is called a single member company (egyszemélyes kft. vagy egyszemélyes rt.). Even a minor (kiskorú) can be the member/shareholder of a single member company, with a major (nagykorú) representing the company as the managing director.

Single member companies are established by the memorandum of association and the articles of association (létesítő okirat – alapító okirat). 

Other private limited companies are established by the memorandum of association and the articles of association (létesítő okirat – társasági szerződés, alapszabály).