Activity Licences

According to Government Decree 16/2004. an activity licence can be granted to the following entities/persons (hereinafter “firms”) operating in Hungary:

a) business entities that have been registered for at least one year at the company registry, including business entities operating with foreign participation and branches of foreign-based companies, but not including companies established in customs-free zones,

b) sole entrepreneurs that are registered in the registry of sole entrepreneurs and have had an entrepreneurial permit for at least one year,

c) in case of extra-territorial services, business entities registered within a member state of the European Union or within any other member state of the European Economic Community, and has been operating according to the respective legislation for a minimum of 1year,

d) publicly-financed institutions that are registered in the registry of publicly-financed institutions,

e) trade offices.

Until it receives an activity licence, a firm cannot carry out any preparatory activities (market research, preparation of quotations, preparatory discussions etc.) related to the export, import, transfer or transit of military equipment or to the provision or receipt of technical assistance.

The application for an activity licence must be accompanied by the following documents, none of which may be less than three months old:

a) In the case of a business entity, the registration from the court registry; in the case of a sole entrepreneur or a public-funded institution, a certified copy of the registration,

b) bank information provided by the bank where the firm keeps its accounts,

c) a declaration from the firm’s managing director that the firm has the necessary personnel and professional resources to trade and/or transit the military equipment and technical assistance and that the firm also has the necessary conditions to comply with the regulations regarding data protection and physical security.

d) a sample of the signature of the firm’s managing director, certified by a notary public,

e) written authorisation for the responsible administrator,

f) in case of extra-territorial services, business entities have to certify the registration within a member state of the European Union or within any other member state of the European Economic Community and that it has been operating according to the respective legislation,

g) certificates from the Hungarian Customs and Finance Guard and the Tax and Financial Control Administration showing whether the firm has any tax debts or other public debts (this document should not be older than 30 days).

Information on brokering activities.

Note: In cases when the company intends to carry out any production and/or service activities (such as production, stockpiling, service, maintenance, destruction, training) or when the company intends to carry out foreign trade activites of its own production, it is necessary to first obtain an activity licence according to 2005. CIX Law on the Production of military equipments and provision of military services.

Activity Licence applications can be submitted via mail to the Department of Conventional Arms Trade Control, Authority of Defence Industry and Export Control, HTLO (1124 Budapest, Németvölgyi út 37-39. or 1534 Budapest, Pf. 919.) or personally at the Customer Service Office of the Hungarian Trade Licensing Office (1124 Budapest, Németvölgyi út 37-39. D, fsz 11-12.).

After the evaluation of the application, the Applicant receives an Activity Licence in the form of an adminisrative resolution that can be handed over personally or posted to the Applicant.