COREDO > Company Formation in Hungary

Company Formation in Hungary

Why Register a Company in Hungary

Hungary is one of the most attractive jurisdictions in Central Europe, offering a 9% corporate tax rate — the lowest in the EU.

The country provides access to the European market, a strategic location in the heart of Europe, and a favourable environment for international business and investment. Hungary is especially attractive for companies operating in manufacturing, IT, pharmaceuticals, logistics, and international trade.

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Types of Companies in Hungary

Foreign entrepreneurs can register a company in Hungary in one of the following legal forms.

Kft. (Korlátolt Felelősségű Társaság)

Limited liability company. The most common form of business entity in Hungary, equivalent to the European LLC. At least one founder — an individual or a legal entity — is required. The minimum share capital is HUF 3,000,000 (approximately EUR 7,500), with each founder’s minimum contribution being no less than HUF 100,000. Kft. is the optimal choice for small and medium-sized businesses, as well as for foreign investors planning to enter the Hungarian market.

Bt. (Betéti Társaság)

Limited partnership. Registration requires a minimum of two partners. One or more partners bear full liability for the partnership’s obligations (general partners), while the others are liable only up to the amount of their contribution (limited partners). This form is suitable for joint ventures where one partner provides funding and the other provides management.

Zrt. (Zártkörűen Működő Részvénytársaság)

Private limited company (closed joint-stock company). The minimum share capital is HUF 5,000,000 (approximately EUR 12,500). Management is carried out by a board of directors. This form is suitable for medium and large projects involving multiple investors.

Nyrt. (Nyilvánosan Működő Részvénytársaság)

Public limited company (public joint-stock company). The minimum share capital is HUF 20,000,000 (approximately EUR 50,000). This form is used for large companies planning to issue shares on the open market.

Kkt. (Közkereseti Társaság)

General partnership. Requires a minimum of two partners, with all participants bearing unlimited joint liability for the partnership’s obligations.

Founder residency is not a mandatory requirement for registering any of the above forms. The choice of a specific form depends on the scale of planned operations, the number of participants, and share capital requirements.

Registration Procedure

Registration of legal entities in Hungary is carried out through the Court of Registration (Cégbíróság). The process is governed by Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings. Tax registration is performed simultaneously through the NAV system (Nemzeti Adó- és Vámhivatal — National Tax and Customs Administration) under the one-stop-shop principle.

The main steps include: selecting a unique company name and verifying its availability, preparing founding documents and having them notarised, opening a bank account and depositing the share capital, submitting documents to the Court of Registration, and obtaining the company registration number and tax number. The tax number assigned during registration simultaneously serves as the VAT payer identification number, eliminating the need for separate VAT registration.

Using the simplified registration procedure, registration can be completed within 1–3 business days, making Hungary one of the fastest jurisdictions for starting a business in Europe. All documents submitted to the Court of Registration must be prepared in Hungarian, so engaging a qualified translator is an essential part of the process for foreign founders.

Required Documents

The following documents are required for company registration in Hungary:

articles of association (Alapító Okirat) or memorandum of association (Társasági Szerződés) specifying the company name, registered office, share capital, business activities, and founder details;

identity documents of founders and directors;

confirmation of the registered office in Hungary;

resolution on the appointment of the managing director;

bank statement confirming the deposit of share capital;

the director’s consent to appointment.

Documents must be prepared in Hungarian or accompanied by a certified translation. Foreign founders may additionally need an apostilled extract from the commercial register of their country of origin (for legal entities) or a notarised power of attorney for a representative acting on behalf of the founder in Hungary.

Registration Timeline

The company registration process in Hungary typically takes 1 to 8 business days depending on the chosen procedure. Simplified registration using the standard template takes 1–3 business days. The standard procedure with a customised charter takes up to 8 business days. Tax registration through NAV is completed within 1 business day provided there are no issues.

Service Costs

The cost of company formation services in Hungary depends on the chosen legal form, the complexity of the corporate structure, and the scope of additional requirements. Contact our specialists for an individual quote — we will prepare a detailed proposal tailored to your specific situation and business objectives.

Tax System of Hungary

Hungary offers one of the most competitive tax systems in the European Union. The corporate income tax (CIT) rate is 9% — the lowest among all EU member states. This rate applies uniformly to all companies regardless of profit size, significantly simplifying tax planning.

The standard value-added tax (VAT) rate is 27%, with reduced rates available: 18% for certain food products and events, and 5% for pharmaceutical products, books, periodicals, and accommodation services. Companies must register as VAT payers when carrying out taxable transactions; the tax number issued during registration simultaneously serves as the VAT payer identification number.

In addition to CIT, companies pay a local business tax (helyi iparűzési adó) at a rate of up to 2% of net revenue, as well as an innovation contribution of 0.3%. Dividends paid by a Hungarian company to foreign shareholders are subject to withholding tax at the standard rate; however, this rate can be significantly reduced under double taxation avoidance agreements that Hungary has concluded with more than 70 countries.

The tax year in Hungary coincides with the calendar year. The annual corporate tax return must be filed by 31 May of the year following the reporting period. Tax administration is carried out through the NAV system (Nemzeti Adó- és Vámhivatal), which provides electronic services for filing returns and paying taxes.

Opening a Bank Account

Opening a corporate bank account is a mandatory step when registering a company in Hungary, as the share capital must be deposited into the company’s bank account before submitting documents to the Court of Registration. Hungary has a well-developed banking sector with a presence of major international and local banks. Opening an account typically requires the personal attendance of at least one authorised person, the company’s founding documents, identity documents of the beneficial owners, and confirmation of the source of funds. The account opening procedure usually takes from several days to two weeks depending on the chosen bank, the complexity of the corporate structure, and the country of tax residence of the beneficial owners.

Our Experts

The COREDO team has been operating since 2016 and possesses deep expertise in company formation across various European jurisdictions.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Has been with the COREDO team since June 2017, responsible for legal support of corporate projects and company registration.

Basang Ungunov

Lawyer. Has been with the COREDO team since June 2022, specialising in legal support of company registration and structuring across various jurisdictions.

Frequently Asked Questions

Does a founder need to be a resident of Hungary to register a company?

No, Hungary does not impose residency requirements on founders or directors. Foreign nationals can register a company on the same terms as country residents.

What is the minimum share capital for a Kft. in Hungary?

The minimum share capital for a Kft. is HUF 3,000,000 (approximately EUR 7,500). Capital can be contributed in cash or in the form of non-cash contributions.

How long does it take to register a company in Hungary?

Using the simplified procedure — 1 to 3 business days. The standard procedure with a customised charter takes up to 8 business days.

What is the corporate tax rate in Hungary?

The corporate income tax rate is 9% — the lowest among all European Union member states.

What legal forms are available to foreign investors?

Foreign investors can register a Kft. (LLC), Bt. (limited partnership), Zrt. (private limited company), Nyrt. (public limited company), or Kkt. (general partnership). The most popular form is the Kft.

Is it mandatory to contribute the full share capital of a Kft. at the time of registration?

Hungarian legislation permits staged contribution of share capital. At the time of registration, at least the established minimum must be paid, with the remainder contributed within the timeframes specified in the articles of association. Each founder’s minimum contribution must be no less than HUF 100,000.

What advantages does Hungary's EU membership provide for a registered company?

A company registered in Hungary gains full access to the European Union single market, the ability to freely move goods and services between member states, and access to European funding programmes. In addition, Hungarian companies can benefit from numerous double taxation avoidance agreements to optimise international operations.

Company Formation in Hungary with COREDO

The COREDO team has been operating since 2016 and provides full support throughout the company registration process in Hungary — from selecting the optimal legal form and preparing founding documents to obtaining the registration number and tax number. Our specialists coordinate interactions with Hungarian notaries, banks, and government authorities, enabling clients to complete the registration process without having to navigate local legislation on their own. Contact us for a free consultation and an individual cost estimate.