This dissertation examines in a detailed analysis the status of legal harmonization of Hungarian company law in selected areas of company formation and capital constitution. The legal areas of incorporation and capital protection regulated by the EC Directives on company law are dealt with, along with the related issues of liability, board structure, the law of branches, and the single-member company. The study focuses in particular on the AG and the GmbH, since it is mainly these forms of company that are covered by the harmonization of laws. In comparison with European and member state legislation, the study examines the extent to which Hungarian company law has been adapted to European directive law and how effectively the harmonized Hungarian company law functions with respect to the standards of creditor protection, small investor protection and shareholder protection. Special attention is paid to the realization of the freedom of establishment of companies incorporated in Hungary, which is to be regarded as one of the most important objectives of European company law.