Why Choose Hungary for Company Formation
Benefits of Registering a Company in Hungary
Benefits of Hungary in addition to strategic location in the center of Europe, low 9% corporate taxes and EU single market access. These benefits drive many startups and enterprises to register a company in Hungary. There are more benefits of starting business in Hungary including a good tax environment, access to talented and multilingual staff, good infrastructure and so on.
Who Can Open a Business in Hungary?
Hungary corporate registration is an option open for all nationalities including EU residents and non-EU residents. And there are no nationality restrictions, making it particularly accessible. Whether you are a one man operation or a company, the registration of the company in Hungary provides the opportunity to do business in a transparent and welcoming environment.
Hungary’s EU Status and Tax Treaties
Full EU membership of Hungary enables businesses to operate in all EU states with minimum hindrances. Furthermore, Hungary has concluded more than 80 double taxation agreements providing good protection from double taxation of potential foreign investors. These treaties also enhance the benefits of Hungary company registration for overseas clients.
Company Types Available in Hungary
Limited Liability Company (Kft)
The most popular legal form in Hungary is the Kft (Korlátolt Felelősségű Társaság). The Kft is a legally easier form to manage and has a more advantageous range of eligible applicants, that is why Hungarian company formation services are likely to advise on to go for it.
Limited Partnership (Bt)
A Bt (Betéti Társaság) consists of at least one general partner and one limited partner. This form is suitable for joint ventures or family-owned businesses. Registering a Bt in Hungary is straightforward and cost-effective. The legislation does not establish the size of the authorized capital, the profit is distributed proportionally according to the contributions.
Unlimited Partnership (Kkt)
The Kkt (Közkereseti Társaság) is intended for businesses where partners share unlimited liability. Though less common, this type allows for direct involvement of all partners in business operations and may suit enterprises based on trust and cooperation.
Public Limited Company (Rt)
The Rt (Részvénytársaság) is used for large enterprises and may be listed on the stock exchange. The minimum statutory capital required by law is 5 million forints or 20 thousand euros. At the time of establishment, 1/3 of the indicated amount must be paid. The minimum number of shareholders is 1; in general, their number is not limited. There should also be 1 leader, who is a private person. The liability for the debts of a company in Hungary is limited to a shareholder contribution.
Step-by-Step Process of Company Incorporation in Hungary
Selecting the Legal Structure
Before you start, it’s important to choose the legal form that best fits your business. Whether you go with a Kft or something else, getting professional guidance can help you make the right decision. It’s also essential to pick a company name that isn’t already taken.
Preparing the Required Documents
Necessary documents include identification, proof of address, business purpose, and company structure. Some may need notarization. Сompany incorporation in Hungary must meet local documentation standards.
Drafting the Articles of Association
This legal document outlines the company’s governance, ownership, and operations. It is essential for registration and must be prepared in Hungarian and submitted to authorities.
Appointing a Local Representative
Although not always mandatory, appointing a local representative can simplify communication with Hungarian authorities. This service is commonly included in Hungarian company formation packages.
Filing with the Commercial Register
To register a company in Hungary, you’ll need to go through the Commercial Register. After the share capital is paid and the documents are filed with the Companies House, the process usually takes one to two weeks, depending on how quickly things move internally. Once approved, you’ll get a registration certificate with your company’s name, address, registration number, and a temporary tax ID—an essential milestone in getting your business up and running.
Receiving Your Company Certificate
Upon approval, you will receive your company certificate and tax number. These are required to legally operate and to open a business bank account in Hungary.
Legal and Regulatory Requirements
Minimum Share Capital and Structure
The minimum share capital depends on the legal form of the company. For a Kft (private limited company), it’s set at 3,000,000 forints (around EUR 7,500). In practice, it's common to provide the capital in cash to the managing director, who then confirms in a formal statement that the funds are available, as required by law.
Residency and Nationality of Shareholders
There are no residency requirements for shareholders or directors. Non-EU residents can fully own and manage a company, making Hungary attractive to global investors.
Mandatory Use of a Hungarian Lawyer
A local lawyer must be involved in the registration process, since the preparation of constituent documents is carried out with the participation of a local lawyer authorized by the state, who supervises the signing of the constituent agreement, the application for company registration and the director's application for acceptance. If a personal meeting with a Hungarian specialist is impossible for any reason, the documents must be notarized and legalized with an apostille.
Virtual Office and Registered Address Rules
All Hungarian companies must have a registered local address. Virtual office solutions are permitted and commonly included in formation services.
Taxation and Financial Obligations
Corporate Tax Rates in Hungary
Hungary offers one of the lowest corporate tax rates in the EU at 9%. This is a key incentive for incorporating a business in Hungary.
VAT Rules and Other Local Taxes
Hungary has a standard VAT rate of 27%, which is among the highest in the EU. There’s also a local business tax of up to 2%, along with certain industry-specific charges.
Hungary company formation services include registration with the Hungarian tax authority, which results in the issuance of a tax identification number and, if necessary, a VAT number, including an EU VAT number.
Opening a Business Bank Account in Hungary
Personal Visit and Identification
Most banks require a personal visit to open a corporate account. Some offer remote options, but ID and verification are always necessary. Company formation services in Hungary can assist with this step.
Required Banking Documents
You will need the company certificate, tax number, Articles of Association, and identification for company representatives. These documents confirm your company’s legal status post-registration.
Online Banking and Multilingual Support
Many Hungarian banks offer online banking in English and other languages, providing convenience for foreign business owners.
How ICON Partners Can Help
Full-Service Incorporation Packages
ICON Partners helps you set up your company in Hungary with everything you need – from legal guidance and paperwork to registration and ongoing support.
Legal Assistance from Accredited Experts
Setting up a company in Hungary is simple when you have experienced lawyers by your side to guide you through every step, ensuring everything stays fully compliant with local laws.
Fast Turnaround and Transparent Pricing
We provide fast processing—formation is usually completed within 3–5 business days after submitting all required documents. Our all-inclusive packages feature transparent pricing for efficient registration.
Pricing and Timeline
Total Cost of Company Registration in Hungary
The total cost will vary depending on the company structure and level of service you choose. It covers legal fees, government charges, and related expenses. Setting up a company in Hungary is generally more affordable than in many other EU countries.
How Long Does It Take to Register a Company?
The registration process typically takes one to two weeks after all documents are submitted. However, this deadline may be extended depending on factors such as the complexity of the application, completeness of documentation, and administrative delays.
Next Steps to Launch Your Hungarian Business
Free Consultation with Our Experts
Contact ICON Partners for a free consultation. Our team will assess your needs and guide you through the entire Hungarian company registration process.
Start the Online Registration Process
Begin your Hungarian business formation by contacting us. Starting a legal entity in Hungary has never been more accessible. Let us help you take the first step toward entering the European market.
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