By
October 21, 2026
How to register a company in Hungary?
Hungary is an attractive European destination for entrepreneurs, international investors and businesses seeking to establish a company within the European Union.
With a standard corporate income tax rate of 9%, a strategic location in Central Europe and access to the EU single market, Hungary offers several advantages for companies engaged in trading, consultancy, technology, manufacturing and international services.
One of the most popular business structures is the Hungarian limited liability company, known as a Korlátolt Felelősségű Társaság (Kft.).
A Hungarian Kft. provides limited liability protection, can generally be owned by foreign shareholders and may be established with a single shareholder.
But how do you register a company in Hungary?
To register a company in Hungary, entrepreneurs generally need to select a legal structure, choose a company name, arrange a registered office, prepare incorporation documents through a Hungarian lawyer, satisfy the applicable capital requirements and submit the registration electronically to the Hungarian Court of Registration.
After incorporation, the company must also meet its tax, accounting, banking and other regulatory obligations.
This guide explains the process of registering a company in Hungary, including legal structures, minimum share capital, foreign ownership, registration documents, tax requirements and business account arrangements.
Yes. Foreign individuals and corporate entities can generally establish and own companies in Hungary.
Hungarian company law does not normally require the shareholders of a Kft. to be Hungarian citizens or residents.
A Hungarian company may therefore be owned by an individual living in another EU Member State or outside the European Union.
Foreign companies may also establish Hungarian subsidiaries or register branches, subject to the applicable legal requirements.
However, company incorporation does not automatically grant foreign shareholders or directors the right to reside or work in Hungary.
Non-EU nationals may need appropriate immigration authorisation depending on their intended activities.
Foreign-owned companies must also comply with the same core company registration, accounting, tax and regulatory requirements as domestically owned businesses.
Hungary offers several legal structures for establishing a business.
The Kft. is one of the most commonly used business structures in Hungary.
It is suitable for small and medium-sized businesses, international trading companies, consultancy firms and many other commercial activities.
A Kft. may be established by one or more shareholders.
The shareholders' liability is generally limited, subject to statutory exceptions.
The minimum registered capital is HUF 3,000,000.
A Zrt. is a private company limited by shares.
This structure may be appropriate for larger businesses, companies seeking investment or enterprises requiring a share-based ownership arrangement.
The minimum share capital is generally HUF 5,000,000.
An Nyrt. is a public company limited by shares and is subject to additional legal and regulatory requirements.
The minimum share capital is generally HUF 20,000,000.
A Bt. is a partnership structure involving at least one general partner and one limited partner.
The general partner generally has unlimited liability for the partnership's obligations, while the limited partner's liability is subject to the applicable legal framework.
A Kkt. is a partnership in which partners generally bear unlimited and joint liability for the partnership's obligations.
A foreign company may establish a registered branch in Hungary.
A branch is not generally a separate legal entity from its foreign parent company.
The appropriate structure depends on the company's ownership arrangements, business activities and commercial objectives.
For many foreign entrepreneurs, the Hungarian Kft. is a practical option.
A Kft. offers limited liability protection, a recognised corporate structure and the ability to operate with a single shareholder.
It can be used for domestic and international commercial activities, subject to any applicable licensing requirements.
However, the Kft. is not automatically the most suitable structure for every business.
Entrepreneurs should consider the number of shareholders, investment plans, liability exposure, administrative costs and intended activities before selecting a legal form.
The minimum registered capital for a Hungarian Kft. is HUF 3,000,000.
This capital may generally be contributed in cash, qualifying non-cash assets or a combination of both.
However, the registered capital requirement should not be confused with a requirement to deposit the entire amount into a bank account before registration.
Hungarian law permits certain arrangements concerning the timing of capital contributions, subject to the company's founding documents and statutory conditions.
Restrictions may apply where capital contributions remain outstanding, including limitations concerning dividend distributions and shareholder liability.
Entrepreneurs should agree on the capital contribution arrangements with their Hungarian lawyer before incorporation.
The first step is to determine which company structure is most appropriate.
For many small and medium-sized businesses, the Kft. is a common choice.
However, larger enterprises or companies seeking external investment may prefer a different structure.
The choice of legal entity affects capital requirements, shareholder liability, governance and administrative obligations.
The company must have a name that complies with Hungarian company registration rules.
The proposed name should be sufficiently distinguishable from existing registered company names and must not be misleading.
The name must also include the appropriate legal form or abbreviation.
For example, a limited liability company normally uses the abbreviation Kft.
Before preparing incorporation documents, the proposed name should be checked against the Hungarian company register.
A Hungarian company must have a registered office address.
This address is used for official correspondence and registration purposes.
The company must have a lawful basis for using the premises as its registered office.
Depending on the business model, the registered office may be located in commercial premises or provided through an appropriate registered office service arrangement.
The company must comply with the applicable rules concerning official correspondence and document availability.
A Hungarian Kft. must have appropriate management arrangements.
A Kft. may generally appoint one or more managing directors.
Foreign individuals may serve as managing directors, subject to the applicable legal requirements.
The managing director is responsible for representing the company and performing management duties in accordance with Hungarian law.
The director's identification details and relevant declarations are normally required during incorporation.
Foreign directors should also consider their personal tax, social security and immigration circumstances.
The incorporation documents must be prepared in accordance with Hungarian company law.
For a Kft., these normally include the articles of association or founding deed.
The documents typically identify the company name, registered office, shareholders, registered capital, capital contributions and management arrangements.
Additional declarations and supporting documents may be required.
Hungarian company registration generally requires the involvement of a Hungarian lawyer or another appropriately authorised legal professional.
The legal representative prepares or countersigns the relevant documents and handles the electronic registration procedure.
The shareholders must establish how the registered capital will be contributed.
For a Kft., the minimum registered capital is HUF 3,000,000.
The contribution arrangements must comply with Hungarian law and be reflected in the incorporation documents.
Depending on the agreed structure, certain contributions may be made after registration, subject to statutory deadlines and restrictions.
The registration application is generally submitted electronically to the competent Hungarian Court of Registration through the company's legal representative.
The application includes the required incorporation documents and supporting declarations.
Hungary provides electronic company registration procedures, including simplified procedures for eligible companies using prescribed document templates.
The court examines the application and determines whether the legal registration requirements have been satisfied.
Once registered, the company receives its official registration details.
These generally include a company registration number and the relevant tax identification information.
The company can then proceed with its remaining operational and administrative arrangements.
A Hungarian company subject to mandatory payment account rules generally needs to maintain an appropriate domestic business payment account.
The company may also consider additional accounts for international transactions.
For example, an international business may use a separate EUR account for eligible SEPA payments.
However, a foreign EU account should not automatically be treated as a substitute for the domestic payment account required under Hungarian law.
After incorporation, the company must ensure that its tax and other statutory obligations are satisfied.
These may include corporate income tax, local business tax, VAT registration, accounting arrangements and employment-related registrations.
Some registrations are integrated into the incorporation process, while others may require additional action.
The company should also assess whether its intended activities require permits or sector-specific authorisations.
The required documents depend on the legal structure and shareholder arrangements.
For a typical Kft., entrepreneurs should prepare:
Foreign documents may require translation or authentication depending on their origin and the applicable procedures.
The Hungarian legal representative should confirm the exact requirements before submission.
Yes. Hungarian company registration is generally conducted electronically through the competent registration authority.
However, this does not necessarily mean that entrepreneurs can complete the entire incorporation process independently through a website.
A Hungarian lawyer or another appropriately authorised legal professional is generally required to prepare or authenticate the incorporation documents and submit the registration application.
Foreign entrepreneurs may be able to complete substantial parts of the process remotely, depending on the identification requirements and the legal representative's procedures.
Some cases may require physical identification, additional document authentication or other formalities.
The registration timeframe depends on the company's legal structure, the procedure used and whether the application is complete.
Eligible companies using simplified registration procedures may receive a registration decision relatively quickly.
Standard applications or those requiring additional verification can take longer.
Foreign shareholders may also need additional time to obtain translations, certified corporate documents or other supporting information.
Company registration should be distinguished from becoming fully operational.
Opening a business account, completing additional tax notifications and obtaining any necessary licences may take additional time.
The total cost of establishing a company depends on the legal structure, professional services and administrative requirements.
For a typical Hungarian Kft., entrepreneurs should consider the following expenses:
The standard company registration procedure for a Kft. is generally free of court registration fees, but professional and administrative costs remain.
The registered capital is a contribution to the company rather than a government registration fee.
Hungary's standard corporate income tax rate is 9%.
This rate applies to the company's taxable corporate income calculated under Hungarian tax legislation.
For example, if a Hungarian company has a taxable profit of HUF 10,000,000, its corporate income tax would ordinarily be HUF 900,000 before considering any applicable adjustments, reliefs or special rules.
However, corporate income tax is not the only tax a Hungarian company may need to pay.
Hungarian municipalities may impose a local business tax at a rate of up to 2%.
Importantly, this tax is calculated using a tax base that differs from ordinary accounting profit.
The actual rate depends on the municipality.
Hungary's standard VAT rate is 27%.
Reduced rates and exemptions may apply to qualifying goods and services.
Companies employing staff must consider payroll taxes, social security contributions and employer reporting obligations.
The applicable obligations depend on the employment arrangements and relevant legislation.
Certain eligible businesses may choose Hungary's small business tax regime, known as KIVA, instead of the ordinary corporate income tax system.
The suitability of this regime depends on the company's size, activities, payroll and other eligibility requirements.
Hungarian companies carrying out taxable activities must consider their VAT obligations.
Company tax registration is generally integrated into the incorporation process.
However, VAT treatment depends on the company's activities, turnover, customer locations and available exemptions.
Certain smaller businesses may qualify for domestic VAT exemption under the applicable rules.
Companies trading with customers or suppliers in other EU Member States may also require an EU VAT identification number and additional reporting arrangements.
VAT registration and compliance should be assessed before the company begins issuing invoices.
Yes. A Hungarian company may provide services or sell products to customers outside Hungary, subject to applicable laws.
For example, a Hungarian Kft. may operate an international consultancy business, software development company, e-commerce operation or trading enterprise.
However, the company must consider VAT, customs, permanent establishment and foreign tax obligations where relevant.
Establishing a company in Hungary does not automatically mean that all business activities conducted abroad will be taxable exclusively in Hungary.
The location of management, employees and actual commercial operations may affect the company's international tax position.
Hungarian companies must comply with accounting and financial reporting requirements.
For most incorporated businesses, professional accounting support is strongly recommended.
An accountant can assist with bookkeeping, VAT reporting, corporate income tax calculations, payroll and annual financial statements.
Companies should arrange accounting support before commencing operations so that invoices, expenses and transactions are recorded correctly from the beginning.
No. Registering or owning a Hungarian company does not automatically provide the shareholder or director with the right to reside in Hungary.
EU citizens generally benefit from applicable EU free movement rules, subject to registration requirements.
Non-EU nationals may need a suitable residence permit if they intend to live or work in Hungary.
The applicable immigration route depends on the individual's nationality, business activities and personal circumstances.
Company incorporation and immigration authorisation are separate legal processes.
Hungary offers several potential advantages for entrepreneurs and international businesses.
The standard 9% corporate income tax rate is an important consideration for companies evaluating European jurisdictions.
Hungary also provides access to the EU single market and is geographically positioned to serve customers throughout Central Europe.
Foreign individuals and corporate entities may generally establish and own Hungarian companies.
The Kft. offers a familiar limited liability structure and can operate with a single shareholder.
Electronic registration procedures may also simplify the incorporation process.
However, businesses should consider local business tax, VAT, employment obligations, professional fees and ongoing compliance costs when assessing the overall benefits.
Yes. Foreign individuals and corporate entities may generally establish Hungarian companies, subject to the applicable legal requirements.
The minimum registered capital is HUF 3,000,000.
Yes. Foreign entrepreneurs may generally own a Hungarian company without being Hungarian residents. However, management, tax residency and immigration considerations may apply.
Company registration is generally submitted electronically through a Hungarian legal representative. Remote completion of individual steps depends on the circumstances.
Yes. A Hungarian lawyer or another appropriately authorised legal professional is generally required for company registration.
Yes. A Kft. may be established with a single shareholder.
Hungary's standard corporate income tax rate is 9%.
Municipalities may impose local business tax at rates of up to 2%, calculated according to the applicable tax base.
A Hungarian Kft. generally must maintain an appropriate domestic business payment account.
Yes. A Hungarian company may generally open an additional business account with an eligible financial institution in another EU country, subject to the provider's requirements.
Registration times depend on the procedure and documentation. Additional time may be needed for banking and operational arrangements.
Yes. Foreign shareholders and directors are generally permitted, subject to applicable legal and identification requirements.
Hungary may be suitable for international trading, consultancy, technology and other commercial activities, depending on the company's operating requirements and tax circumstances.
Registering a company in Hungary can provide entrepreneurs with access to the European Union market and a corporate taxation framework featuring a standard 9% corporate income tax rate.
For many small and medium-sized businesses, the Hungarian Kft. is a commonly selected structure because it provides limited liability protection and permits foreign ownership.
The incorporation process generally involves choosing a company name, arranging a Hungarian registered office, appointing management, preparing incorporation documents through a Hungarian lawyer and submitting the application electronically.
After registration, the company must address its business payment account, accounting, taxation and other regulatory obligations.
Foreign entrepreneurs may establish Hungarian companies without necessarily residing in Hungary, although international tax and immigration requirements should be considered.
With appropriate legal preparation, a suitable business structure and proper financial arrangements, Hungary can provide a practical base for establishing and operating a company within the European Union.
Disclaimer: This article provides general information as of October 2026 and does not constitute legal, tax, financial or immigration advice. Company registration procedures, tax rules and administrative requirements may change. Entrepreneurs should obtain professional advice before establishing a company in Hungary.
