The importance and role of professional document translation in legal process

In today’s world of international cooperation, business transactions, and legal proceedings, foreign-language documents have become increasingly common. In order for these documents to have legal effect in official contexts, it is essential that they are translated accurately, professionally, and—when required—in an officially certified format. A flawed or incomplete translation can lead not only to administrative obstacles, but also to serious legal, financial, and reputational risks.

In this article, we provide a detailed overview of why professional translation is critical, the different types of document translations, and in which legal or administrative processes official translations are typically required.

I. Why Isn’t a “Simple” Translation Enough?

At first glance, translation may seem like a straightforward process: transferring words from one language to another. However, in legal and business contexts, this simplistic approach can be dangerously inadequate. Professional document translation requires not only linguistic fluency but also specialized domain knowledge and a deep understanding of the legal and cultural implications of both the source and target languages.

Translators must faithfully preserve not just the literal meaning of the original text, but also its legal intent, structure, and precise terminology. Failure to do so can compromise the validity of a document, lead to serious misunderstandings, or render a submission non-compliant with legal or institutional requirements.

Examples of Documents Where Simple Translation Is Not Sufficient:

• Legal Documents: Such as contracts, powers of attorney, court pleadings, legal notices, arbitration awards, and judicial decisions. These documents often contain nuanced legal language and require precise terminology to maintain enforceability across jurisdictions.
• Business and Financial Records: Including annual financial statements, shareholder reports, audit findings, invoices, tax declarations, and partnership agreements. Even minor translation errors in figures or clauses can lead to tax penalties, disputes, or regulatory issues.
• Personal Official Certificates: Such as birth, marriage, and death certificates, criminal background checks, university diplomas, and other academic or civil status documents. These are often required for immigration, citizenship, or employment abroad, and must be translated in formats accepted by governmental bodies.

Consequences of Inadequate or Incorrect Translation:

• Legal Invalidation: A mistranslation of a contractual clause or statutory reference can render the document unenforceable or void under law. In court proceedings, a misrepresented argument or evidence due to poor translation may lead to case dismissal or an unfavorable ruling.
• Rejected Submissions: Government agencies, banks, courts, and notaries often reject documents that do not meet official formatting or language accuracy standards. This can delay proceedings and force resubmission at additional cost.
• Missed Deadlines and Penalties: In regulatory or legal contexts, failure to provide properly translated documentation within set deadlines can result in fines, sanctions, or the loss of a legal remedy.
• Tax Complications: Inaccurate translation of contracts, invoices, or financial reports may lead to discrepancies during tax audits, triggering audits, financial penalties, or compliance investigations.
• Reputational Harm: Submitting poorly translated documents can damage your company’s image with business partners, authorities, or clients. It may signal negligence, lack of professionalism, or even raise concerns about fraudulent intent.

In legal, governmental, and institutional procedures, not all translations are created equal. Depending on the nature of the process and the authority involved, different levels of formality and verification are required for translated documents to be accepted. Understanding these distinctions is crucial for ensuring compliance and avoiding unnecessary delays or rejections.

Below is a breakdown of the three primary types of translation and where each is typically accepted or required.

1. Simple (Non-Certified) Translation

A simple translation refers to a standard translation completed by a professional or bilingual individual, but it lacks any formal certification, translator’s declaration, or institutional seal.

Characteristics:

• No certification or official stamp.
• Usually not signed by the translator.
• No legal standing on its own in official processes.

Suitable for:

• Internal company uses.
• Preliminary review of foreign-language documents.
• Informational or decision-preparation purposes.
• Draft versions of contracts or legal texts for negotiation.

⚠️ Important: Simple translations are rarely accepted by courts, authorities, or financial institutions in any formal or procedural context. They may be sufficient for understanding content but not for legal submission.

2. Official Translation (Certified by a Translation Agency)

An official translation is created by a professional translator or translation agency, and is accompanied by a declaration of authenticity, confirming that the translation is accurate and complete. It is often signed and sealed by the agency or a certified translator.

Characteristics:

• Includes a signed statement by the translation agency.
• Confirms the translation matches the original document in content and structure.
• Often includes the original document as an annex.

Commonly Accepted for:

• Company registration and modifications (especially if foreign ownership is involved).
• Banking and financial procedures, including loan applications and foreign investment documentation.
• Hungarian Tax Authority (NAV) submissions, such as:
  • Contracts and agreements with foreign partners.
  • Invoices and transaction records in other languages.
  • Audit documentation.

Note: This type of translation is widely accepted by most private sector institutions and semi-official bodies in Hungary and the EU.

3. Certified (Sworn or Officially Attested) Translation

Certified translation, also known in Hungary as “hiteles fordítás”, is the most formal and legally recognized translation level. These are issued by the Hungarian Office for Translation and Attestation (OFFI) or other authorized bodies in compliance with Hungarian law. They are legally binding and often bear an official stamp, registration number, and accompanying certificate.

Characteristics:

• Officially attested by an authorized entity (typically OFFI)
• Includes certification with legal force.
• Format and layout comply with specific legal and procedural requirements.
• Often required with an attached original or notarized copy of the source document.

Required in the following scenarios:
Court proceedings or notarial processes involving foreign-language documents, such as:

• Foreign judgments.
• International powers of attorney.
• Cross-border litigation materials.

Civil registry cases, e.g.:

• Birth, marriage, or death certificates issued abroad.
• Divorce decrees from another jurisdiction.

Citizenship or naturalization procedures, where foreign-origin documents must be officially accepted by Hungarian authorities.

Consular services and visa applications, where embassies or consulates require official verification of a document’s translation.

Keep in mind: Only OFFI or authorized sworn translators can issue these certified translations in Hungary. Submitting a translation from an uncertified source may result in outright rejection of your application or a requirement to re-submit the documents with proper authentication.

Different authorities have different rules about when and how translations are required. Here are some key examples:

1. Company Formation and Amendments in Hungary

If a foreign national is involved in the process, translations are often required for:

• Personal identification documents (passport, ID card)
• Proof of address
• Foreign corporate records (company extracts, articles of association)

These usually need to be in certified or officially sealed form.

2. Court Proceedings

In litigation or legal disputes, any submitted foreign-language document—such as contracts, correspondence, or witness statements—must be accompanied by an official or certified translation. Courts may also verify the quality and completeness of the translation.

3. Tax Audits and NAV Proceedings

If a business works with foreign partners, the Hungarian tax authority (NAV) may request translations of:

• Contracts
• Invoices
• Performance confirmations

These translations don’t necessarily have to be certified, but they must be professionally accurate and complete.

4. Citizenship, Immigration, and Registry Procedures

The Immigration Office and registry authorities only accept certified (sworn) translations for:

• Birth, marriage, or death certificates
• Criminal records
• Diplomas or educational certificates

To be officially accepted, a translation must meet both formal and substantive criteria, including:

• Full translation of the document, including headers, footers, signatures, and notes
• Correct use of specialized legal and professional terminology
• Page numbering, translation clause, and translator’s certification (for official versions)
• Attachment of a copy of the original document, if required

If a translation does not meet these standards, it may be rejected, resulting in delays or additional administrative procedures—especially problematic when deadlines are tight.

Professional document translation is not merely a language service—it is a legal and business responsibility. With increasing regulation and stricter administrative procedures, it is essential that every foreign-language document is translated accurately, completely, and in an officially acceptable format, especially when it is submitted to courts, company registries, or other authorities.

If you’re unsure about which type of translation you need, or whether your process requires an official or certified translation, feel free to contact us. Our experienced legal translators and consultants will guide you through the requirements and ensure your documents meet all official standards—professionally, on time, and with full legal security.