For foreign-owned companies in Hungary
Professional managing director services: a local managing director who acts in person
A Consiliar partner manages the Hungarian company as a managing director registered in the company register, or as co-managing director alongside the expatriate manager. The partner acts in Hungarian, keeps regulatory compliance under control and reports regularly to the parent company.
Request a proposalWhen does a company need a local managing director?
We designed the service mainly for small and medium-sized companies under Chinese ownership, and also under Korean ownership – suppliers, subcontractors and trading companies – but it can also be used by the Hungarian company of any other foreign parent. It is typically needed in the following situations.
The expatriate manager is leaving
Expatriate managers typically come for a fixed term of a few years. If the successor has not yet been appointed, or does not know the Hungarian operation, the change is a continuity risk: signing authority, banking and pending matters before the authorities may be left with no one in charge.
An inspection by the authorities is expected
In 2026 the authorities are visibly stricter in checking that foreign-owned manufacturers comply with occupational safety, employment and environmental rules. Preparation for an inspection has to happen at management level, and not on the day the inspectors arrive.
The parent company cannot see into the Hungarian operation
The owner receives the monthly figures but does not know which obligations, deadlines and risks lie behind them. The company needs a manager who knows these and reports on them regularly and in clear terms.
Matters have to be handled in Hungarian
The bank, the authorities and the employees expect answers in Hungarian and in line with local practice. Matters handled through an interpreter move more slowly and give rise to more misunderstandings.
A new subsidiary is being set up
In a new company, the first months decide how its operating routines are built. It is easier to set them up properly at the start than to correct them later.
What does the service provide?
Three elements, which can be ordered separately or together.
Professional managing director services
A managing director or co-managing director who is registered in the company register and performs the role in person. As sole managing director, he or she is the most senior executive of the Hungarian company; as co-managing director, he or she is responsible for local matters alongside the expatriate manager, while business direction remains with the expatriate manager.
Change of managing director and handover
A fixed-term engagement to replace a departing expatriate manager. Our partner takes over pending matters, runs the company during the transition and then hands them over to the successor in an orderly way.
Management-level compliance support
Keeping occupational safety, employment matters, environmental protection and the employment of guest workers under control at management level: who is responsible for what, what the deadline is, what is missing, and what has to be put before the owner. This is business management support, not legal advice.
What does the managing director do day to day?
For every engagement, the scope of duties is set out in the contract. It typically consists of the following:
- representing the company before the bank, the authorities and business partners;
- exercising the employer’s rights within the agreed scope, and communicating with employees in Hungarian;
- coordinating the work of the accountant, the payroll provider, the occupational safety specialist and the other external service providers, and holding them to their deadlines;
- monitoring the company’s financial position and its reporting and filing obligations;
- being present on site according to the schedule set out in the contract;
- reporting to the parent company regularly and in writing: what has happened, what is expected, and where an owner’s decision is needed.
The managing director does not take over the work of the specialists. Accounting, tax advice and legal work continue to be done by the company’s own duly authorised service providers; the managing director’s job is to make sure that this work is completed, fits together, and is known to the owner.
Actual management, not nominee directors
Under Hungarian law a managing director must act in person and, as an executive officer, also bears personal responsibility. Our partner therefore accepts only engagements in which he or she can actually manage the company: with full sight of the accounts, the bank account, the contracts and the official documents, and with a part in decisions. We do not provide nominee directors who exist on paper only, and we do not recommend such arrangements.
Three arrangements compared
The three arrangements suit different situations and do not exclude one another. The table shows general characteristics; individual engagements may differ.
| Aspect | Expatriate manager alone | Interim manager on a day rate | Consiliar co-managing director |
|---|---|---|---|
| Role | Registered managing director of the Hungarian company; the parent company’s own person | Typically an appointed operational or functional manager; entry in the company register is a matter of agreement | Registered co-managing director alongside the expatriate manager |
| Main strength | Knows the parent company’s product, culture and expectations | Expertise that can be brought in quickly for a defined task, such as a reorganisation or a project | Knows the Hungarian operating and regulatory environment and is on site on a lasting basis |
| Language | Works in the parent company’s language; typically relies on an intermediary for Hungarian administration | Works in Hungarian and typically in English | Acts in Hungarian; communicates with the parent company in the language agreed at the start of the engagement |
| Time frame | Fixed-term assignment, typically a few years | For the duration of one task or a transitional period | Ongoing engagement that spans changes of expatriate manager |
| Presence | Full time | Typically full time or close to full time during the engagement | According to the presence schedule set out in the contract |
| Fee structure | Salary and the costs of the assignment | Day rate for the days worked | Monthly retainer for a fixed scope of presence and duties |
| When the manager changes | Part of the local knowledge leaves with the manager | The engagement ends with a handover | The local managing director stays and introduces the new expatriate manager to the Hungarian matters |
| When it is a good choice | When the company has an experienced Hungarian management team | When a full-time manager is needed temporarily for a specific task | When lasting, registered Hungarian management presence is needed alongside the expatriate manager |
How does an engagement start?
First conversation
We learn about the situation: what the company does, who manages it now, and why you are contacting us. The conversation is without obligation, and at the end we tell you whether we can help.
Assessment of the company and its risks
We review the operations, the headcount, the sites, pending matters before the authorities and the financial position. This is necessary because our partner takes on the management only of a company whose situation he or she knows.
Written proposal and contract
The proposal sets out the scope of duties, the level of presence, decision-making powers, the arrangements and language for reporting, the fee and the terms of termination. At this stage you meet the prospective managing director in person.
Registration with the court of registration and handover
The managing director is appointed by the owner; the legal work required for registration with the court of registration is done by a lawyer. The handover takes place at the same time: documents, banking and official authorisations, and pending matters.
Ongoing operation and reporting
The managing director manages the company according to the agreed arrangements and reports to the parent company regularly and in writing. From time to time we review the scope of duties and the presence together, and if the company’s situation changes, we adjust the contract accordingly.
How is the fee determined?
The fee is a monthly retainer for a scope of presence and duties fixed in advance. We do not publish amounts on the website because they depend on the engagement; we state the fee in a written proposal after the assessment.
The factors that determine the fee:
- the size and headcount of the company;
- the number of sites;
- the risk profile of the industry;
- the level of presence;
- whether the role is that of co-managing director or sole managing director;
- the duration of the engagement.
It is a condition of the contract that the client company maintains directors’ and officers’ (D&O) liability insurance that also covers the managing director.
Frequently asked questions
Who will be the managing director?
A contracted partner of Consiliar, who performs the role in person. We expect our managing directors to have several years of senior management experience at the head of a foreign-owned company in Hungary, to know the Hungarian legal, tax and regulatory environment, and to be at home in the owner’s business culture. Our current managing director partner led a substantial Korean-owned construction company in Hungary for several years, and this partner’s work is recognised within the Korean business community in Hungary. You meet the prospective managing director in person before the contract is signed; the appointment is decided by the owner of the company.
Can there be a co-managing director alongside the expatriate manager?
Yes, this is the situation the service was mainly designed for. The expatriate manager is in charge of business direction and relations with the parent company; the co-managing director is in charge of local matters. Whether the two managing directors sign individually or jointly is decided by the owner; the division of duties is set out in the contract.
In which language does the managing director communicate with the parent company?
The language of communication and reporting is agreed at the start of the engagement. The working languages are Hungarian and English; we also provide support in Chinese and Korean.
How long does the engagement last?
That depends on the situation. A co-managing director role is typically an ongoing engagement; an engagement that bridges a change of managing director is for a fixed term. The duration and the conditions of termination are set out in the contract.
How much time does the managing director spend at the company?
As much as the presence schedule in the contract requires. We define it on the basis of the assessment, in line with the size and risks of the company, and it is one of the main factors in the fee.
What does the managing director need in order to do the job?
Full sight of the company’s operations: the accounts, the bank account, the contracts, and the employment and official documents. This is a condition of the engagement; without it, the managing director could not perform the role responsibly.
Does the parent company keep control?
Yes. Owner’s decisions remain with the owner. At the start of the engagement we record in writing which matters are decided by the owner and which by the managing director, together with the reporting arrangements.
What happens when the engagement ends?
The managing director hands over the documents, the authorisations and the pending matters to the successor or to the person designated by the owner. The procedure and the time needed for the handover are set out in the contract in advance, so that the company is not left without a manager during the change.
Do you provide nominee directors?
No. We do not provide nominee directors. Our partner is an actual managing director who acts in person. We do not accept engagements in which the managing director would only lend his or her name while someone else runs the company.
Do you give legal advice?
No. Consiliar does not provide legal services; our compliance support is of a management and business nature. Legal matters are handled by Czudar DHH Law Firm, an independent law firm, under a separate engagement. If the company has its own lawyer, the managing director works with that lawyer.
Do you provide accounting or a registered office?
No. We do not provide accounting, tax advice or registered office services. The managing director works with the company’s existing, duly authorised service providers.
How do you calculate the fee?
As a monthly retainer for a scope of presence and duties fixed in advance. The amount is determined by the size and headcount of the company, the number of sites, the risk profile of the industry, the level of presence, and the form and duration of the engagement. We state the fee in a written proposal.
Let’s start with a conversation
Tell us briefly about the situation of the Hungarian company: who manages it now, what is changing, and by when a solution is needed. We usually reply within two working days.
Request a proposal