Hungary Company Formation
Hungary company Formation. Guide to Forming a Company in Hungary Main Characteristics and the basic rules of Company registration in Hungary
BRIS Group provides professional Hungary company formation services for entrepreneurs and international investors seeking a strategic base in Central Europe. Establishing a Hungarian Limited Liability Company (Kft.) offers limited liability protection, access to European Union markets, and a favorable business environment for international operations. Our experts manage the full Hungary company registration process remotely, including corporate banking support, compliance, and ongoing administration, ensuring your company in Hungary is fully compliant and ready for European and global business.
Start your Hungary company with BRIS Group today — trusted experts in global incorporation.
Your Complete Guide to Hungary Company Formation for Non-Residents
Setting up a company in Hungary offers entrepreneurs an exceptional gateway to the European Union. With its business-friendly policies, low corporate tax rate, and strategic Central European location, Hungary is an increasingly popular destination for international investors. This comprehensive guide walks you through the Hungary company formationprocess, including legal requirements, benefits, and key steps to register your business efficiently.
Why Register a Company in Hungary?
Hungary combines EU membership benefits with competitive operating costs and a supportive investment climate. Whether you’re launching a startup or expanding your global footprint, Hungarian company setup offers access to major European markets and an educated, multilingual workforce.
Key Advantages:
- EU Market Access: Operate freely within the European Union.
- Competitive Tax Rate: Hungary offers one of the lowest corporate tax rates in the EU (9%).
- Strategic Location: Ideal logistics hub connecting Western and Eastern Europe.
- Skilled Workforce: Cost-effective, educated labor pool.
- Investor Incentives: Tax breaks, grants, and government programs for foreign investors.
- Streamlined Incorporation: Fast and modern electronic company registration.
Types of Companies in Hungary for Foreign Investors
When you register a company in Hungary, choosing the right structure is essential. Below are the most common forms for non-residents:
| Company Type | Hungarian Name | Minimum Capital | Liability | Best For |
|---|---|---|---|---|
| Private Limited Company | Korlátolt Felelősségű Társaság (Kft.) | HUF 3,000,000 | Limited | SMEs and startups |
| Public Limited Company | Nyilvánosan Működő Részvénytársaság (Nyrt.) | HUF 20,000,000 | Limited | Large enterprises and public listings |
| Branch Office | Kereskedelmi Képviselet | N/A | Parent company liable | Extensions of foreign entities |
Hungary Company Formation Requirements
Before you begin the Hungary company formation process, it’s important to ensure that all legal and administrative prerequisites are in place. The following list outlines the core requirements for establishing a company in Hungary — whether you’re a local entrepreneur or an international investor.
| Requirement | Description | Mandatory |
|---|---|---|
| Unique Company Name | Approved by Company Registry | ✅ |
| Registered Office in Hungary | Legal business address | ✅ |
| Shareholder(s) | At least one, can be foreign | ✅ |
| Director(s) | Minimum one, can be non-resident | ✅ |
| Minimum Share Capital | HUF 3,000,000 for Kft. | ✅ |
| Articles of Association | Drafted and notarized | ✅ |
| Corporate Bank Account | To deposit share capital | ✅ |
| Tax Identification Number | Issued by NAV | ✅ |
| VAT Registration | If business activity requires | ⚙️ |
| Legal Representative | For non-resident entities | ⚙️ |
Step-by-Step: How to Register a Company in Hungary
Step 1 – Choose a Company Name:
Verify and reserve a unique business name with the Company Registry.
Step 2 – Draft the Articles of Association:
Include key details such as company purpose, ownership, and management structure.
Step 3 – Appoint Directors and Shareholders:
Non-residents can fully own and manage a Hungarian company.
Step 4 – Open a Bank Account:
Deposit the minimum share capital and obtain proof from the bank.
Step 5 – File for Registration:
Submit documents electronically to the Hungarian Company Court (Cégbíróság).
Step 6 – Obtain Tax and VAT Numbers:
Register with the Hungarian Tax Authority (NAV) to receive your TIN and, if applicable, VAT number.
Step 7 – Commence Business Operations:
Once registration is approved, your company can begin trading immediately.
Timeframe for Company Registration in Hungary
Total Estimated Time
7 to 14 business days
In most straightforward cases, company registration in Hungary can be finalized in as little as one week, especially when handled by a professional service provider with local expertise.
Factors That May Affect Timing
- Delays in bank account opening for non-residents
- Missing or incorrectly translated documents
- Additional licensing requirements for regulated sectors
- VAT or special tax registrations requiring further review
By partnering with a professional service provider, you can significantly accelerate your Hungary company formationprocess, ensure compliance with all legal formalities, and avoid common administrative delays.
Pros and Cons of Hungary Company Formation
| Advantages | Challenges |
|---|---|
| Low 9% corporate tax rate | Hungarian language requirements |
| Full foreign ownership allowed | Complex bureaucracy for permits |
| Fast electronic registration | Need for local legal and tax compliance |
| EU access and incentives | Cultural and procedural differences |
Ongoing Compliance and Corporate Obligations
Once your Hungarian company is established, ongoing compliance includes:
- Annual financial statements
- Corporate tax filings
- VAT submissions (if applicable)
- Maintaining a registered office and statutory records
Professional accounting and legal guidance are strongly recommended to ensure compliance with Hungarian law.
Professional Assistance for Company Formation in Hungary
Forming a company in Hungary is straightforward — but expert support ensures full compliance and efficiency. Our dedicated team assists clients from start to finish, including:
- Company Structure Consulting: Tailored advice on the most efficient setup.
- Document Preparation: Drafting and notarizing Articles of Association.
- Registered Office Service: Local address for official correspondence.
- Bank Account Opening: Liaison with leading Hungarian banks.
- Tax & VAT Registration: Complete registration with NAV.
- Ongoing Legal and Accounting Support: Full post-incorporation services.
Begin Your Hungary Company Formation Today
Leverage Hungary’s strategic location, favorable taxation, and open investment climate to expand your business in Europe. Our professionals simplify the entire Hungarian company setup process — from registration to compliance — so you can focus on your growth.
Contact us today to start your Hungary company formation journey with confidence.
Questions & Answers
1. What is the corporation tax rate in Hungary?
The corporation tax rate in Hungary is 9%. This rate is one of the lowest in the European Union, making Hungary an attractive location for businesses.
2. How much is the income tax for individuals in Hungary?
The income tax rate for individuals is 33.5%. This rate applies to all personal income, including salaries and wages.
3. What are the employee expenses deducted from gross salary in Hungary?
Employee expenses include a 15% income tax (flat rate), along with various social contributions: 10% for social security, 3% in cash pension contributions, 4% in-kind pension contributions, and 1.5% for labour market contributions.
4. What is the employers’ contribution to taxes in Hungary?
Employers must pay a total of 19.5% as social tax, in addition to 1.5% for labour contributions based on the monthly gross salary of each employee.
5. How does the Value Added Tax (VAT) work in Hungary?
The standard VAT rate in Hungary is 27%. However, there are reduced rates: 18% for certain goods and services, and 5% for specific categories, such as basic food items and medicines.
Learn more: Visit our
Full Hungary FAQ page
or contact our tax and company formation team at[email protected]
What types of companies can non-residents form in Hungary?
Non-residents in Hungary can establish several types of companies, the most common being a Limited Liability Company (Kft.) and a Public Limited Company (Rt.). The Kft. is particularly popular due to its flexible structure and lower capital requirement. Non-residents can also set up sole proprietorships and partnerships, although these may be less common. Each company type has its own regulatory requirements, so it’s important to choose based on your specific needs and business goals.
What are the benefits and advantages of forming a company in Hungary as a non-resident?
Forming a company in Hungary offers numerous advantages for non-residents. These include a stable and favourable business environment, competitive corporate tax rates, and access to the EU market. Additionally, Hungary has various incentives for foreign investors, such as reduced tax rates in certain sectors. The business formation process is relatively straightforward, and the country provides a skilled workforce. Overall, operating in Hungary can enhance business growth and provide valuable opportunities.
What are the requirements for non-residents to establish a company in Hungary?
To form a company in Hungary, non-residents need to meet certain requirements. Key steps include providing a local business address, appointing at least one director (who can be a non-resident), and registering the company with the Hungarian Court of Registration. Additionally, a minimum share capital is required—typically HUF 3 million for a Kft. Documentation such as the company’s statutes, proof of identity, and tax registration is also necessary. It’s advisable to consult a local expert to navigate these requirements smoothly.
Are there any restrictions for non-residents forming a company in Hungary?
While non-residents can generally set up a company in Hungary, there are some restrictions to be aware of. For instance, certain industries such as financial services, gambling, and real estate may have additional regulations and licensing requirements. Moreover, non-residents should ensure compliance with any applicable international trade laws and regulations. It’s essential to conduct thorough research and potentially seek legal advice to navigate these restrictions effectively.
How long does it take to form a company in Hungary for non-residents?
The time required to form a company in Hungary varies but typically takes between 1 to 4 weeks. The timeline can be influenced by factors such as the completeness of documentation, the efficiency of local authorities, and specific business needs. Once all required documents are submitted, the registration process with the Hungarian Court of Registration is usually straightforward. Engaging a local expert can expedite the process and ensure that all necessary steps are completed efficiently.
What are the ongoing compliance requirements for a company in Hungary?
After establishing a company in Hungary, ongoing compliance is essential for continued operation. Companies must file annual reports, maintain proper accounting records, and comply with local tax obligations. This includes corporate tax returns, VAT registration if applicable, and fulfilling any industry-specific regulatory requirements. Additionally, companies are required to hold regular shareholder meetings and keep minutes of these meetings. Sustaining compliance can be complex, so many companies opt to work with local accountants or legal advisors.
Full Hungary FAQ page
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Hungary
Capital: Budapest
Region: Country in Central Europe
Language: Hungarian language
Currency: Hungarian forint (HUF)
Time Zone: GMT+1
Dial Code: +36
Abbreviations: HU
Helping Your Company Thrive in Hungary With us, starting and running a business in Hungary will be easy and efficient!
- Full support of the company’s registration in Hubgary: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.