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Hungary has established itself as one of the most attractive business destinations within the European Union, combining a strategic central European location with the lowest corporate tax rate in the entire EU at just 9%. For international entrepreneurs and investors looking to establish a European presence, Hungary offers an exceptional combination of low operating costs, a highly educated workforce, and full access to the EU single market of over 440 million consumers.
Budapest, the capital, serves as a vibrant commercial hub with excellent infrastructure, a thriving startup ecosystem, and a growing reputation as a centre for shared services and technology companies. Major multinational corporations including Mercedes-Benz, Samsung, and Bosch have chosen Hungary as a base for their European operations, underscoring the country’s appeal as a business-friendly jurisdiction.
Hungary’s legal system is well-developed and based on civil law traditions. The country has been an EU member since 2004, giving businesses incorporated here full access to EU trade agreements, freedom of establishment, and the ability to provide services across all member states. The Hungarian forint (HUF) is the national currency, though many businesses operate in EUR for international transactions.
Whether you are looking to establish a trading company, a holding structure, an IT services firm, or a manufacturing operation, Hungary provides a stable and cost-effective environment. ShelfCompanies24 has extensive experience helping international clients set up Hungarian companies quickly, compliantly, and with minimal bureaucratic friction.
Hungarian company law recognises several distinct legal entity types, each suited to different business objectives and ownership structures. The most common forms used by international entrepreneurs are outlined below.
| Feature | Kft (Korlátolt Felelősségű Társaság) | Zrt (Zártkörűen Működő Rt) | Bt (Betéti Társaság) | Kkt (Közkereseti Társaság) |
|---|---|---|---|---|
| English Name | Private Limited Company | Private Company Limited by Shares | Limited Partnership | General Partnership |
| Min. Share Capital | HUF 3,000,000 (~EUR 8,000) | HUF 5,000,000 (~EUR 13,000) | No minimum | No minimum |
| Min. Members | 1 (single-member allowed) | 1 shareholder | 2 (1 general + 1 limited) | 2 |
| Liability | Limited to capital contribution | Limited to share value | General partner: unlimited; Limited partner: limited | All partners: unlimited |
| Best For | SMEs, trading, services, holding | Larger enterprises, institutional investors | Family businesses, small ventures | Professional partnerships |
| Foreign Ownership | 100% allowed | 100% allowed | 100% allowed | 100% allowed |
The Kft is by far the most popular choice for international entrepreneurs entering Hungary. It offers limited liability protection, requires only one member, and has reasonable capital requirements. The Kft is comparable to a German GmbH or British Ltd and is the structure we recommend for the vast majority of our clients.
The Zrt is the Hungarian equivalent of a private joint-stock company, suitable for larger operations or where institutional investment is anticipated. The higher capital requirement and more complex governance structure make it less practical for small to medium businesses.
Partnerships (Bt and Kkt) are less common for international entrepreneurs due to the unlimited liability exposure for general partners. They remain popular among Hungarian professionals such as lawyers, accountants, and consultants.
Registering a Korlátolt Felelősségű Társaság (Kft) in Hungary is a structured process that can be completed remarkably quickly with professional assistance. Hungary has modernised its company registration system, and the entire process can now be handled electronically through a Hungarian attorney.
Select a unique company name that is not already registered in Hungary. The name must include the “Kft” suffix. We conduct a name availability check through the Court of Registration database before filing. You may reserve up to three name variants in order of preference.
Appoint at least one managing director (who can be a foreign national and need not be resident in Hungary). Define the ownership structure and the percentage of share capital held by each member. A single member is permitted for a sole-member Kft.
The minimum registered share capital for a Kft is HUF 3,000,000 (approximately EUR 8,000). At least 50% of the cash contribution must be paid up before registration, and the remaining balance within one year of incorporation. In-kind contributions are also permitted and must be valued at the time of formation.
A Hungarian attorney (who must hold a valid Hungarian Bar Association membership) prepares the deed of foundation (articles of association). This document sets out the company name, registered address, business activities (NACE codes), share capital structure, director appointments, and member rights. The document must be countersigned by the attorney.
The attorney files the formation documents electronically with the competent Court of Registration (Cégbíróság). Hungary operates a simplified registration procedure for standard formations, which typically results in registration within 1 to 3 business days. Upon registration, the company receives its company registration number (cégjegyzékszám).
The National Tax and Customs Administration (NAV) issues a tax identification number automatically as part of the registration process. The Hungarian Central Statistical Office (KSH) assigns a statistical code. Both numbers are typically issued simultaneously with the company registration number.
With the registration documents in hand, you can open a corporate bank account at a Hungarian bank. We assist with introductions to banks that accept non-resident directors and can facilitate remote account opening where possible.
Understanding the capital requirements for Hungarian companies is essential for proper planning and budgeting.
The share capital can be contributed in cash (deposited into a temporary bank account opened for the formation) or in kind (assets such as intellectual property, equipment, or real estate, which must be valued by the members or, for contributions exceeding HUF 5 million, by an independent auditor).
It is important to note that the registered share capital is not “locked” in the same way as in some other jurisdictions. Once the company is registered and operational, the capital can be used for ordinary business purposes including purchasing inventory, paying salaries, and covering operating costs.
Hungary offers one of the fastest company formation timelines in the European Union, particularly for the standard Kft structure.
| Item | Timeline | Cost |
|---|---|---|
| Company registration (simplified procedure) | 1–3 business days | Government fee: ~EUR 100 |
| Company registration (standard procedure) | 2–5 business days | Government fee: ~EUR 300 |
| Attorney fees for formation | — | From EUR 1,500 |
| Registered office (virtual address) | — | From EUR 500/year |
| Bank account opening | 1–3 weeks | Varies by bank |
| Total formation package | 2–5 business days | From EUR 2,000 |
Our all-inclusive Hungary formation packages start from EUR 2,000 and cover name reservation, preparation of articles of association, Court of Registration filing, tax number application, registered office for the first year, and ongoing support throughout the process. Bank account introduction is included at no additional charge.
Hungary’s tax regime is one of the most competitive in Europe and a primary reason many international businesses choose to incorporate here.
Hungary has signed more than 80 double taxation agreements, providing planning opportunities for international structures. The combination of 9% corporate tax and 15% personal income tax creates an effective total tax burden that is highly competitive by European standards.
Opening a corporate bank account is an essential step after forming your Hungarian company. Hungary has a well-developed banking sector with both domestic and international banks offering corporate services.
For non-resident directors, bank account opening can sometimes be challenging. We recommend attending an in-person meeting at the bank if possible, as this significantly improves approval rates. ShelfCompanies24 provides bank introduction services and can arrange appointments with relationship managers who are experienced in working with foreign-owned companies.
Typical documents required for account opening include: company registration certificate, articles of association, directors’ and UBOs’ identification documents, proof of business activity, and a business plan or description of intended operations.
Hungarian companies must fulfil several ongoing compliance obligations to maintain their good standing and avoid penalties.
ShelfCompanies24 offers annual compliance packages that cover all of the above requirements, ensuring your Hungarian company remains in good standing year after year. Our local partners include qualified Hungarian accountants and tax advisors who handle all filings on your behalf.
ShelfCompanies24 has helped hundreds of international clients establish and maintain companies in Hungary. Here is what sets us apart:
Yes. Hungarian law allows 100% foreign ownership of all company types, including the Kft. There are no restrictions on the nationality or residency of shareholders or directors. A single foreign individual or company can be the sole member and managing director of a Hungarian Kft.
No. The entire formation process can be handled remotely through a power of attorney granted to a Hungarian attorney. Documents can be signed electronically or with apostilled signatures. Physical presence is not required for registration, though some banks may request an in-person meeting for account opening.
Using the simplified electronic registration procedure, a Kft can be registered in 1 to 3 business days from the date of filing. With ShelfCompanies24’s expedited service, including document preparation, the entire process from engagement to registered company typically takes 2 to 5 business days.
The minimum registered share capital for a Kft is HUF 3,000,000, which is approximately EUR 8,000 at current exchange rates. At least 50% of cash contributions must be paid before registration, with the remainder due within one year of incorporation.
Yes. Hungary’s 9% corporate tax rate, combined with the EU Parent-Subsidiary Directive (which eliminates withholding tax on dividends paid to qualifying EU parent companies), makes it an attractive jurisdiction for holding structures. Capital gains on the sale of qualifying participations may also benefit from favourable treatment under Hungarian tax law and applicable double tax treaties.
Annual running costs typically include: registered office rental (from EUR 500/year), accounting and tax compliance (from EUR 1,500/year), bank account fees (approximately EUR 100-300/year), and any applicable local business tax. ShelfCompanies24 offers bundled annual packages starting from EUR 2,000 that cover all essential compliance requirements.
Absolutely. As a full EU member state, Hungary enjoys all the benefits of the single market, including freedom of establishment, free movement of goods and services, and the ability to trade with other EU member states without customs duties or border restrictions. A Hungarian company can invoice clients across all 27 EU member states using standard intra-community supply rules.
Yes. Hungary has concluded more than 80 double taxation agreements with countries worldwide, including all major economies such as the United States, United Kingdom, Germany, China, Japan, and the UAE. These treaties help prevent double taxation and often reduce withholding tax rates on dividends, interest, and royalties paid to treaty-country residents.
Ready to form your Hungarian company? Contact ShelfCompanies24 today for a free consultation. Our team will assess your requirements, recommend the optimal structure, and guide you through the entire formation process.
Related pages: Hungary Overview | Ready-Made Shelf Companies in Hungary | Bank Accounts for Hungarian Companies