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Business Establishment and Legal Registration in Hungary

Establishing a legal business structure in Hungary enables rapid entry into the EU market and allows you to take advantage of benefits such as low tax rates and the opportunity to obtain residency status.

What is included in our business setup services in Hungary?

Partnering with us allows you to begin realizing your plans today, supported by our complete expert, legal, and advisory services.

Creation and configuration of a personal account on the tax authority’s website

A detailed guide and support for registering and configuring your personal account on the Hungarian tax authority’s portal for convenient management of your tax matters.

Opening a Corporate Bank Account in Hungary

We will help you quickly and securely open a bank account for your company in Hungary, providing full support at every stage of the process.

Preparation of a complete set of documents required for business operations

We ensure the preparation and proper execution of all required documents for the legal and successful operation of your business in Hungary.

10 hours of legal and accounting consultation after company formation

Receive the professional legal and accounting support you need to confidently launch and operate your business in Hungary. ChatGPT can make mistakes. Check important info. See Cookie Preferences.

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Types of Legal Entities in Hungary

Limited Liability Company (Kft.)

A Kft. in Hungary is a limited liability company registered with the Commercial Court. Its establishment requires the preparation of a founding deed and articles of association, as well as the appointment of a managing director.

The minimum registered capital is HUF 3 million (approximately EUR 7,500). The founder may choose to contribute the capital either by bank transfer or in cash to the company’s cash desk.

Joint-Stock Company (Rt.)

A legal business structure with limited shareholder liability, suitable for both small and large capital investments.

Requirements include: registration in the Commercial Register, a minimum share capital (HUF 3 million for a Zrt. and HUF 20 million for an Nyrt.), governing bodies (board of directors and, where required, a supervisory board), and annual financial reporting.

This structure allows companies to raise capital through the issuance of shares and provides a high level of credibility with partners and banks.

Trust Foundation (Alapítvány)

A legal structure for managing assets in the interests of beneficiaries or public purposes. It ensures asset protection, transparency, flexible allocation of funds, and full compliance with Hungarian law.

Westbridge Consulting provides full support for the establishment and ongoing management of the foundation.

Limited Partnership (Bt.)

Betéti társaság (Bt.) is a Hungarian form of limited partnership in which one or more partners have unlimited liability (beltagok), while the other partners have limited liability (kültagok).

This structure is well suited for small and medium-sized businesses, startups, and investors who wish to minimize personal risk when conducting business in Hungary.

Sole Proprietor (Egyéni vállalkozó, EV)

An ideal legal form for individuals who wish to run a business independently. It offers simple registration, transparent taxation, and flexibility in choosing business activities.

This structure is well suited for freelancers, consultants, and small businesses. It requires registration with the tax authorities, proper bookkeeping, and, where applicable, licenses for specific types of activities.

Hungarian Guest-Investor Program (Golden Visa)

Get precise answers to your specific questions with our personalized consultation service.

Expert Consultation Services

Professional Consultation — $100/hour

The consultation lasts 30 or 60 minutes, depending on your preference. All questions and answers will be provided in writing after the consultation.

You can pre-submit a list of questions and receive answers electronically, saving time during your consultation to discuss nuances and details with our expert.

Frequently Asked Questions

The most frequently asked questions about buying real estate in Hungary

What types of companies can be registered in Hungary?

In Hungary, the most common business forms include:

- Kft. (Korlátolt Felelősségű Társaság) — a limited liability company, suitable for small and medium-sized businesses.
- Rt. (Részvénytársaság) — a joint-stock company, typically used for large-scale projects.
- Sole Proprietorship (Egyéni vállalkozó) — intended for individual entrepreneurs.

The choice of legal form depends on the scale of the business, the number of founders, and investment plans.

How long does company registration take?

Standard company registration takes 5 to 15 business days, provided that all required documents are in place. Electronic registration can speed up the process to 2–3 days.

What is the minimum required share capital?

For a Kft., the minimum share capital is HUF 3,000,000 (approximately EUR 8,000–9,000). For an Rt., the minimum share capital is HUF 5,000,000 (approximately EUR 13,000–14,000). The capital may be contributed in cash or in kind (assets).

Is Hungarian residency required to establish a company?

No, foreign nationals can establish companies without residing in Hungary. However, the company must have a registered legal address in Hungary, and a tax representative is required if the founder does not reside in the country.

What taxes do companies pay in Hungary?

The main taxes include:

- Corporate Income Tax — 9%, one of the lowest rates in the EU.
- Value Added Tax (VAT) — standard rate 27%, with reduced rates of 18% and 5% for certain goods and services.
- Social contributions and payroll taxes, which depend on the number of employees and the industry.

Is it possible to establish a company remotely?

Yes, company registration can be completed remotely with the assistance of a legal representative. The founder’s physical presence is not required if all documents are properly prepared.

Is it necessary to keep accounting records in Hungarian?

Yes, official accounting records must be kept in Hungarian. We recommend working with local accountants or international accounting firms with experience in Hungary.

How do you choose a registered office address for a company?

A registered office address is mandatory for company registration.
You may use:

A physical office or workspace.
Virtual office services provided by specialized companies.

The registered address is also required to obtain a tax number and to receive official correspondence.

What documents are required to register a company?

Typically, the following documents are required:

• Passport or ID of the founder
• Address of the legal representative or the company’s registered office
• Decision on the amount of share capital
• Signed articles of association
• Application for registration in the Commercial Register

Can a foreign national open a corporate bank account?

Yes, banks in Hungary open corporate accounts for foreign clients. This usually requires:

• Company registration certificate
• Identification documents of the founders and authorized signatories
• Company address and contact details

Is it necessary to obtain licenses to conduct business?

It depends on the type of activity. For example:
• Financial and insurance services require licenses
• Restaurant business, construction, and healthcare are also regulated
• Simple trading or IT activities usually do not require special permits

What are the advantages of establishing a company in Hungary?

Key advantages include:

• Low corporate income tax — 9%
• Strategic location in Europe
• EU membership and access to European markets
• Transparent registration process and a business-friendly legal framework

What types of taxes must a foreign entrepreneur pay in Hungary?

Foreign entrepreneurs in Hungary usually face the following taxes:

Corporate Income Tax (CIT): 9% on profits.
Value Added Tax (VAT): standard rate of 27%, with reduced rates of 5% and 18%.
Dividend tax: 15% when paid to foreign investors (reduced in some cases under international tax treaties).
Social security and employment contributions: applicable if the company has hired employees.
Local business tax: up to 2% of revenue, depending on the company’s place of registration.

Who is a kézbesítési megbízott in Hungary?

“Kézbesítési megbízott” is an authorized person or representative entrusted with receiving official legal and administrative documents on behalf of a company or an individual in Hungary.

The main role of such a representative is to ensure the accurate and timely receipt of notifications, court summonses, correspondence from government authorities, and other official communications—especially when the addressee is located outside the country.

Appointing a kézbesítési megbízott is often required for foreign companies registered in Hungary in order to ensure compliance with local legal requirements.

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