Company registration in Hungary

Registration fee is from 6000 €

Registration period — 2 weeks

Minimum authorized capital - 3,000,000 HUF

Remote opening — yes

Financial statements — Yes

Hungary, a country in Central Europe, has been an active member of the UN since 1955, joined NATO in 1999, and became a member of the European Union in 2004. Its capital is Budapest.

Maira Consult recommends using a company registered in Hungary for export-import activities in EU countries, for logistics or transport services, and for intellectual property operations. 

Registering an IT company in Hungary is a very advantageous solution, as Hungary offers tax incentives for income from qualified intellectual property. The application of such incentives depends on the type of IP, the nature of the company's activities, and compliance with the conditions established by law.

The process of registering a company in Hungary. An application for company registration is submitted to the Court of Registration electronically through a Hungarian attorney.

A company registered in Hungary is a Hungarian tax resident for corporate tax purposes. For foreign companies, tax residency may also arise if their place of effective management is located in Hungary.

Our experts are well versed in the process of registering a company in Hungary and are ready to offer high-quality services and provide consultations on all matters. Contact us for professional assistance!

Hungary advantages

1

Lowest corporate income tax in the EU - 9%

2

No withholding tax on dividends, interest, and royalties for foreign legal entities

3

Payment of dividends, interest, and royalties to foreign legal entities - without withholding tax

4

Special tax regime for IT companies

5

Benefits for intellectual property operations

General Information

Registration Features

A mandatory registration requirement is holding at least one bank account with a Hungarian bank.

Company Name

The company name must end with a word, phrase, or abbreviation reflecting its legal form.

Authorized Capital

The minimum share capital for a KFT-type company is HUF 3,000,000.

Director

At least one director (managing director) is required. As a general rule, there are no requirements regarding the director's Hungarian citizenship or residency. Additional requirements may arise for a non-resident director when opening a bank account and undergoing KYC.

Shareholders

At least one individual or legal entity is required, with no residency requirements.

Financial Reporting

A Kft must keep accounting records and file annual financial statements. The company must also fulfill ongoing tax and reporting obligations, in particular regarding corporate tax, VAT, and the local business tax.

A mandatory audit applies to companies meeting the criteria established by law:

  1. Turnover over the last 2 years of HUF 600,000,000.
  2. More than 50 employees.

Taxation

  • Corporate income tax: 9%.
  • Minimum tax base: 2% of total income, subject to adjustments provided by law. The minimum base rules do not apply in the company's first tax year or in certain other cases specified by law.
  • Local business tax: up to 2% depending on the municipality, applied to net sales revenue with certain permitted deductions.
  • Innovation contribution: 0.3% for companies meeting the relevant statutory criteria.
  • Standard VAT rate: 27%, with reduced rates of 18% and 5% for certain categories of goods and services.
  • As a general rule, dividends, interest, and royalties paid to foreign legal entities are not subject to withholding tax.
  • For large international groups with consolidated revenue of EUR 750 million or more, global minimum tax rules (Pillar Two) may apply, with a minimum effective rate of 15%.

Confidentiality

The state register is open to the public, providing public access to data on the director, shareholder, and beneficial owner, as well as the company's share capital amount.

Stages of company registration

01

Choosing the name and form of the company

A limited liability company (KFT) is the most convenient form for doing business in Hungary. Before its registration, a request must be submitted to the company register to check the availability of the name. Once the name is confirmed, preparation of the corporate documents begins.

02

Preparation and collection of documents

Every founder of the company is required to provide a passport and a document confirming their place of residence (for example, a utility bill).

03

Identification of company participants

Before registering a company in Hungary, a meeting of the participants is held with a notary present, at which the founding documents are signed. After that, a bank account for the KFT company is opened at one of the Hungarian banks, into which the amount of the share capital is deposited. Once the bank confirms that the funds have been credited, the documents are submitted to the state register to complete the registration of the KFT company.

04

Formation of the share capital (if necessary)

Before registering the company, payment of the share capital must be made.

05

Company registration

The process of registering a company in Hungary generally takes 1 to 2 weeks from the day the required set of documents is received, depending on the register's workload.

06

Receiving of corporate documents

As soon as the company in Hungary is registered, the register issues the finished corporate documents bearing the corresponding stamps.

07

Legalization of documents (if necessary)

If needed, the documents of the Hungarian company are submitted for legalization and apostille certification.

08

Delivery of corporate documents

The original corporate documents of the Hungarian company are sent by courier service.

Answers to the Most Common Questions:

Company registration in Hungary costs from 6,000 euros.
Foreign nationals looking to start a business need to choose a legal form (the most popular being the Kft, a limited liability company), prepare the incorporation documents, provide copies of the founders' passports and proof of residential address, open a bank account to deposit the share capital, and submit the documents to the state register. The registration process is fully electronic and can be completed remotely.
Registering a company in Hungary takes 1 to 2 weeks from the moment the full set of documents is received.
Yes, foreign nationals are entitled to start a business without restriction. The organization becomes a Hungarian tax resident upon registration, regardless of where it is managed from.
The corporate income tax rate in Hungary is 9%, one of the lowest in the European Union. An additional municipal tax is levied, the amount of which depends on the city of registration and can reach up to 2%.
To register a company in Hungary, a foreign national needs to choose a unique name, determine the legal form (for example, Kft), prepare the incorporation documents, provide copies of the founders' passports and proof of residential address, open a bank account to deposit the share capital, and submit the documents to the state register. The registration process is fully electronic and can be completed remotely.
Registering a Kft-type entity in Hungary costs from 6,000 euros. The exact cost depends on the legal form, the number of members, whether the share capital needs to be paid in, legalization of corporate documents, and other factors. For detailed information, it is recommended to contact the specialists at Maira Consult.

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