Last reviewed September 2026 by Anna Modlinska, Company Formation Specialist

Company Formation in Hungary: Register a Kft., Zrt. or Branch

ShelfCompanies24 has been forming Hungarian companies for international founders since 1995. Our Budapest team handles every step of company formation in Hungary on a single agreed service contract, from picking the right legal form through ügyvéd drafting, Cégbíróság entry, NAV registration and your first Hungarian bank account. The Hungarian Cégbíróság operates on a 1-working-day target for electronic filings, making this one of the fastest EU jurisdictions for new company formation. Most clients are trading inside 1 to 3 weeks, or on day one if they choose a ready-made készre hozott Kft..

One consolidated scope

Our service covers ügyvéd, Cégbíróság, UBO register, virtual székhely.

One-stop-shop

Company + székhely + banking + könyvelő iroda under one roof.

Speed & service

Cégbíróság 1-working-day decision target. Hungarian-speaking case manager.

Fully remote

eIDAS-qualified e-signature, Hungarian consulate, or delegate to our Budapest ügyvéd via meghatalmazás.

Burden is ours

We draft the társasági szerződés, file Cégbíróság, register adószám / EU VAT, file UBO.

Which Hungarian Company Type Should You Register?

Kft.: Korlátolt Felelősségű Társaság (the Hungarian “Ltd”)

The Kft. is the workhorse of Hungarian commerce, covering more than 95% of new corporate registrations. Governed by Act V of 2013 (Hungarian Civil Code).

  • Jegyzett tőke: minimum HUF 3,000,000, fully paid in cash at formation.
  • Members (tagok): 1 or more, any nationality, any country of residence.
  • Ügyvezető (executive director): at least one. No Hungarian residency requirement.
  • Felügyelőbizottság (supervisory board): optional, mandatory only if > 200 employees or specific sectors.

Zrt.: Zártkörűen Működő Részvénytársaság (private joint-stock)

Closed joint-stock company, used for capital-raising structures.

  • Minimum capital: HUF 5,000,000, 25% paid at formation, balance within 365 days.
  • Shareholders (részvényesek): registered shares, unlimited number.
  • Governance: dualistic (igazgatóság + felügyelőbizottság) or monistic (vezérigazgató).

Other forms

  • Nyrt.nyilvánosan működő részvénytársaság, public joint-stock company (for Budapest Stock Exchange listings)
  • Kkt.közkereseti társaság (general partnership)
  • Bt.betéti társaság (limited partnership)
  • SE, Societas Europaea (European Company)
  • Branch of a foreign company (fióktelep)
Form Min. capital Formation time Best for
Kft. HUF 3,000,000 1 to 3 weeks Default, SMEs, holdings
Zrt. HUF 5,000,000 3 to 5 weeks Larger groups, capital-raising
Bt. No minimum 1 to 3 weeks Tax-optimised partnerships
Branch Parent-dependent 3 to 6 weeks Multinational presence
Készre hozott Kft. HUF 3M (paid) 3 to 7 days Need immediate trading

Company Registration in Hungary: What the Cégbíróság Entry Requires

Company registration in Hungary is an electronic court procedure. The Cégbíróság, the Court of Registration, enters the company in the Cégjegyzék once the file is complete, and it works to a statutory decision target of 1 working day for a fully compliant electronic submission. That target is the reason Hungary is one of the fastest registration jurisdictions in the EU, and also the reason a defective file is bounced rather than corrected in place.

Four things have to be in the file: the társasági szerződés drafted and countersigned by a Hungarian ügyvéd, the jegyzett tőke paid in and confirmed by the bank, the business activities expressed in TEÁOR codes, and a registered office (székhely) in Hungary with the right to use it. Tax registration follows the entry: the adószám is automatic, the EU VAT number is applied for at NAV, and the beneficial owners are filed within 5 working days.

Setting up a Hungarian company from the UK or the Gulf

Founders in the United Kingdom, Romania, the Netherlands and the Gulf make up most of the Hungarian registrations we file, and none of them has to be in Budapest. Because Hungary uses an ügyvéd countersignature rather than a notarial deed, the document chain is shorter than in neighbouring jurisdictions: you sign at a Hungarian consulate, with an eIDAS qualified electronic signature, or under a meghatalmazás that hands the execution to our Budapest ügyvéd.

Step-by-Step Hungarian Company Formation Process

1. Strategy call and entity choice

Confirm legal form, member structure, business purpose (tevékenységi körök with TEÁOR codes, Hungary’s NACE classification), székhely location and banking preferences.

2. Drafting the társasági szerződés

Hungarian law mandates that the founding document be drafted and countersigned by a Hungarian ügyvéd (registered attorney), there is no notary requirement for company formation, unlike most other EU jurisdictions. Drafted bilingual Hungarian-English with provisions on share transfers, pre-emption, exit clauses.

3. Ügyvéd execution

The founder(s) appear before the ügyvéd (in person in Budapest, or remotely via consulate, eIDAS qualified electronic signature, or notarised meghatalmazás delegating to our Budapest ügyvéd). Ügyvéd fees are set by the attorney and scale with the complexity of the deed.

4. Jegyzett-tőke deposit

The founder opens a deposit account with a Hungarian bank and deposits HUF 3,000,000 (Kft.) or HUF 1,250,000 (Zrt., 25% of HUF 5,000,000). Bank issues a letéti igazolás attached to the Cégbíróság filing.

5. Cégbíróság electronic filing via Cégkapu

The ügyvéd files the registration package electronically through the Cégkapu government portal. Statutory decision time: 1 working day for fully compliant electronic submissions. The Cégbíróság issues a cégbejegyző végzés (registration order) and the company appears in the Cégjegyzék at e-cegjegyzek.hu.

6. Tax registration: adószám, EU VAT

On Cégbíróság entry the company automatically receives its adószám. The EU VAT number is issued separately upon application via NAV form ‘T 201T:

  • Adószám, Hungarian tax ID, automatic on registration
  • EU VAT, for intra-Community trade through VIES; mandatory above HUF 12M turnover, voluntary below
  • Iparűzési adó, local business tax registration with the municipality

7. UBO register filing

Beneficial owners (any natural person holding > 25%) must be filed in the central UBO register (tényleges tulajdonosi nyilvántartás) within 5 working days of cégbejegyzés. Penalties up to HUF 5,000,000.

8. Bank account and operational readiness

Convert deposit account to operating account. Hungarian banks: OTP Bank (largest), K&H Bank (KBC), Erste, Raiffeisen Hungary, MBH Bank (formed 2023 from Takarékbank+MKB merger), UniCredit, CIB Bank, Granit Bank. We match clients to the right bank for their sector.

Typical Timeline for Company Formation in Hungary

Scenario Typical duration
Kft. via standard electronic formation 1 to 3 weeks
Zrt. (joint-stock) 3 to 5 weeks
Branch of foreign company 3 to 6 weeks
Készre hozott Kft., transfer rather than formation 3 to 7 working days

Hungarian Corporate Tax Environment (2026)

  • 9% flat társasági adó, the lowest headline corporate tax rate in the EU.
  • 0 to 2% iparűzési adó, local business tax set by municipality. Budapest 2%, many regional towns lower.
  • 27% / 18% / 5% VAT (ÁFA), standard / reduced. The 27% standard is the highest in the EU but mostly recoverable for B2B operators.
  • 0% withholding on dividends to corporate residents and EU parents under the Parent-Subsidiary Directive; 15% to individual residents.
  • KIVA, alternative small-business tax: 10% on payroll + dividends; available to SMEs < HUF 3 billion turnover.
  • R&D super-deduction, 100% additional deduction; specific incentives for innovation and IP development.
  • EKHO, simplified flat tax for certain creative-sector contractors (15%).

Company Formation Services in Hungary: What the Ügyvéd Does and What We Do

Hungary is the one jurisdiction in the region where company formation services have a fixed legal core. The társasági szerződés has to be drafted and countersigned by a Hungarian ügyvéd, and only that attorney can file the company electronically through Cégkapu. No corporate service provider, accountant or foreign lawyer can substitute for that step, and any provider claiming otherwise is simply engaging an ügyvéd behind the scenes.

What we add around it is the rest of the project: choosing the form and the TEÁOR codes, drafting bilingually so a non-Hungarian founder can read what they are signing, running the KYC and apostille chain, arranging the jegyzett-tőke deposit and the confirmation the court needs, filing the beneficial-owner record, registering for EU VAT and the local business tax, introducing the bank and handing over to a könyvelő iroda for the monthly bookkeeping. One case manager holds all of it.

Frequently Asked Questions about Hungarian Company Formation

How do I register a company in Hungary?

A Hungarian ügyvéd drafts and countersigns the társasági szerződés, the jegyzett tőke is deposited and confirmed by the bank, and the ügyvéd files the package electronically through the Cégkapu portal. The Cégbíróság works to a 1 working day decision target for compliant filings, though the realistic end-to-end timeline including preparation, banking and tax registration is 1 to 3 weeks. The adószám is issued with the entry.

What do company formation services in Hungary include?

At minimum, the ügyvéd work that Hungarian law reserves to an attorney: drafting and countersigning the founding document and filing it with the Cégbíróság. Around it sits the rest of the project, entity and TEÁOR selection, bilingual drafting, KYC and apostilles, the jegyzett-tőke deposit, the beneficial-owner filing, EU VAT and iparűzési adó registration, a székhely for the first year, a bank introduction and a bookkeeping handover.

Can I set up a Hungarian company from the United Kingdom?

Yes, and British founders are one of our largest groups here. You sign either at a Hungarian consulate in the United Kingdom, with a qualified electronic signature, or under a meghatalmazás giving our Budapest ügyvéd authority to execute and file. UK corporate documents used in the process need an apostille and a Hungarian translation. Nothing in the procedure requires a Hungarian address for the owner, only a székhely for the company.

How long does company formation in Hungary really take?

Standard Kft. via electronic formation: 1 to 3 weeks total (the cégbejegyzés decision itself is statutorily 1 working day, but pre-filing document preparation, banking and tax registration take 1 to 2 additional weeks). Zrt. takes 3 to 5 weeks. A ready-made Kft. transfer completes in 3 to 7 working days.

What is the minimum jegyzett tőke for a Hungarian Kft.?

HUF 3,000,000, fully paid in cash before the Cégbíróság filing, or contributed in kind under specific rules. The bank confirms the deposit and the confirmation goes into the registration file. It is a higher entry threshold than several neighbouring jurisdictions set, which is one reason buyers of a ready-made Kft. value the fact that the share capital has already been paid in.

Why does Hungary use ügyvéd instead of notary?

Hungarian corporate law follows the Anglo-American model: ügyvédi ellenjegyzés (attorney’s countersignature) on the társasági szerződés is sufficient legal authentication for company formation. There is no Hungarian notary requirement for share transfers or articles of association, a significant simplification compared to Slovakia, Czech Republic or Germany.

How much corporate tax will my Hungarian Kft. pay?

9% on profit (társasági adó) + 0 to 2% on net revenue (iparűzési adó based on municipality). Effective combined rate for a typical Budapest Kft.: ~11% on adjusted profit. For a smaller Kft. choosing the KIVA regime: 10% on payroll + dividends regardless of profit margin.

Do the directors or shareholders have to be resident in Hungary?

No. Neither the members nor the managing director of a Hungarian Kft. need to live in Hungary or hold any particular nationality, and no work permit is needed simply to hold office. One local formality does apply: a member or executive officer without a Hungarian address must name a delivery agent in Hungary, a kézbesítési megbízott, to receive official documents on their behalf. The company itself needs a registered seat in Hungary.

What is the difference between Kft. and Zrt.?

Kft. is the SME workhorse with HUF 3M minimum capital and a single ügyvezető. Zrt. is a closed joint-stock company with HUF 5M minimum capital, registered shares, and either dual-tier (igazgatóság + felügyelőbizottság) or monistic (vezérigazgató) governance. For 95%+ of foreign clients, Kft. is the right choice.

What is KIVA and should I use it?

KIVA (kisvállalati adó, small-business tax) is an optional regime that replaces both társasági adó and most payroll-related social contributions with a 10% tax on payroll + dividends. Available to companies with annual revenue under HUF 3 billion (≈ €7.5M) and balance-sheet total under HUF 3 billion. Particularly attractive for service-sector SMEs with high payroll vs. low margin.

Can I run my Hungarian company entirely from abroad?

Yes. Hungarian tax law applies the place-of-effective-management test, so substance considerations matter. Most foreign clients run their Kft. from abroad with a Budapest virtual székhely and occasional ügyvezető visits. We discuss substance requirements during onboarding.

What comes after Cégjegyzék entry?

NAV adószám automatic; EU VAT application; UBO filing within 5 working days; iparűzési adó registration with the municipality; bank-account activation; engagement of a könyvelő iroda for bookkeeping. Most clients are fully operational within 2 weeks of cégbejegyzés.

Ready to register your Hungarian company? Contact our Hungarian desk for a service covering ügyvéd, Cégbíróság, tax registration and banking.

Related Services in Hungary

Why Choose Hungary Over Comparable Jurisdictions

Hungary is one of several jurisdictions where ShelfCompanies24 maintains pre-formed entities and active formation services. Why pick Hungary for your Kft. specifically? Lowest CIT in EU at 9% is the headline reason, but it pays to understand the trade-offs against the alternatives. Below are concrete differentiators that matter when you are weighing a structure decision against the actual operating profile of your business.

  • 2026 corporate tax rate: 9%.
  • Formation timeline: 1 to 3 weeks for a new Kft., with a 1 working day decision target at the Cégbíróság, and 48 hours to execute a shelf-Kft. transfer.
  • Single point of contact: One case manager coordinates the registry filing, the registered office and the bank introduction, so you are not briefing an accountant, a lawyer and a bank separately.
  • Banking access: our consultants pre-position your Kft. with banks that accept the structure for your operating profile, rather than letting your application sit cold in an onboarding queue for 8-16 weeks.
  • EU passport: goods and services trade VAT-free across all 27 EU member states once Kft. is registered for EU VAT.

Substance, Pillar Two, and 2026 Regulatory Realities

Cross-border corporate structuring in 2026 is governed by a tighter web of rules than in any previous decade. Three forces shape every decision:

  • OECD Pillar Two, global minimum effective tax rate of 15% on multinational groups with consolidated revenues above the Pillar Two threshold. Where applicable, Hungary (like every modern jurisdiction) operates a Qualified Domestic Minimum Top-up Tax (QDMTT) so any top-up tax accrues locally rather than to a foreign parent jurisdiction. Smaller groups and standalone companies are out of scope of Pillar Two and continue under the regular Hungary tax regime.
  • Beneficial-owner transparency, Hungary records beneficial ownership in the central beneficial ownership register (UBO register) under Act XLIII of 2021. It is not open to general public search: access runs to the authorities, to obliged entities such as banks and corporate service providers, and to anyone who can show a legitimate interest. We prepare the filing and keep it current as part of the ongoing service.
  • Substance expectations, passive holding companies face a reduced substance test; active income-generating activities face the full test (adequate staff, premises, and management presence in Hungary commensurate with the activity carried on). Your consultant maps your activity profile to the substance level needed before incorporation.

For Hungary specifically: Flat 9%, lowest CIT in EU; combined with 0-2% iparuzesi (local) and KIVA alternative regime. EU but not Eurozone (HUF).

Common Pitfalls When Forming a Hungarian Company

Issues we routinely see when prospects come to us after attempting the process directly with local providers in Hungary:

  • Underestimating documentation, incomplete KYC packs, missing apostille on cross-border documents, or notarisation defects routinely add 2 to 4 weeks to the standard timeline. Our pre-flight document checklist eliminates this in advance.
  • Picking the wrong legal form, choosing the Kft. when an alternative Hungarian structure would have been better for the activity profile, or vice versa. Reorganising later means redoing the registry filings and the bank onboarding.
  • Bank onboarding mismatch, applying to a bank whose product profile doesn’t match your transaction volume, currency mix, or industry. Re-applying after rejection signals risk to the next bank.
  • Gaps in post-incorporation registrations, VAT/sales-tax thresholds, beneficial-owner deadlines, and sector-specific licences each have their own filing windows that the basic incorporation pack doesn’t cover.

Additional Questions about Hungary Formation

Can I change the registered name of a Hungarian Kft. after acquisition or formation?

Yes. A name change is filed with the Cégjegyzék via a directors’ resolution and a routine filing, typically clears in 48 hours. We include up to one name change as standard for both shelf-company purchase and new formation.

Does a company in Hungary have access to double taxation treaties?

Yes. A Hungarian Kft. that is tax resident in Hungary uses the EU Parent-Subsidiary Directive and the Interest and Royalties Directive, and Hungary’s own network of just over 80 comprehensive double tax treaties, published by the tax authority NAV as at 1 January 2026. Two gaps matter in practice: no treaty with the United States is in force, and Russia and Belarus have unilaterally suspended key articles of theirs. Treaty benefits still depend on the principal purpose test.

How does ShelfCompanies24 protect client confidentiality?

Client information is held under contractual non-disclosure plus the professional-secrecy obligations applicable to corporate-service providers in our home jurisdiction. We do not share client identity or transaction details with third parties beyond what is statutorily required (KYC reporting, beneficial-owner-register filings, AML/CTF reporting where triggered). Our internal access to client files is logged and access-restricted by need-to-know.

What happens if Hungary changes its corporate-tax regime materially?

Material tax changes (rate moves, new minimum-tax regimes, treaty amendments) get communicated to active clients with our analysis of impact. Where the change is structural, for example the OECD Pillar Two implementation in Hungary or a domestic tax-base reform, we proactively flag clients whose structures may need restructuring and set out the remedial steps. The client is not left to discover material regulatory change from their accountant or from media reports.

What is the difference between forming a Kft. versus a branch of a foreign company in Hungary?

A Kft. is a separate legal entity Hungarian-tax-resident with its own corporate tax filings and beneficial-owner record. A branch is an extension of a foreign parent, the foreign parent is the legal entity, the Hungary branch books local-source income but the parent’s overall tax liability cascades. Most foreign owners pick a Kft. for liability ring-fencing and clean tax accounting; branches are sometimes preferred where the parent has specific group-relief or treaty considerations that depend on common legal personality.

Service Scope: What ShelfCompanies24 Delivers

Engaging us for your Hungarian new Kft. formation covers the following deliverables under one service:

  • Initial scoping call, free, 30-45 minutes, with a Hungarian-experienced consultant who maps your business model to the right structure.
  • KYC pack preparation, checklist, sample templates, and review of your draft documents before submission.
  • Kft. drafting, memorandum and articles of association, directors’ resolutions, share-capital subscription, registered-office agreement.
  • Cégjegyzék filing, electronic submission, fee payment, and clearance of any registry queries.
  • Tax registration, corporate tax identification, VAT/sales-tax registration where applicable.
  • Beneficial-owner register filing, initial filing plus ongoing maintenance during the first 12 months.
  • Bank account introduction, pre-screened bank match, supporting documentation pack, and follow-up with the relationship manager.
  • Apostille and courier, for cross-border documents requiring legalisation.
  • Digital handover pack, certificates, registers, share certificates, banking credentials, and a 12-month compliance calendar.

The deliverable scope is identical regardless of whether you are based in the EU, the US, the UK, the Middle East, or APAC, we operate the same service globally for Hungarian corporate setup. Optional add-ons (virtual office, accounting retainer, payroll, sector licences, transfer-pricing documentation) are scoped separately, so the incorporation or transfer work stays exactly as agreed.

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