By
October 22, 2026
How to Register a Company in Hungary: A Complete Guide for Foreign Entrepreneurs
Hungary is an attractive destination for entrepreneurs, investors, and international businesses looking to establish a company within the European Union.
With a competitive 9% corporate income tax rate, access to the European single market, and opportunities for 100% foreign ownership, Hungary offers several advantages for businesses seeking a European corporate presence.
One of the most frequently asked questions among international entrepreneurs is: How to register a company in Hungary?
Registering a company in Hungary involves selecting the appropriate legal structure, preparing incorporation documents, appointing directors, arranging a registered office, and completing registration with the Hungarian authorities.
Foreign entrepreneurs can generally establish a Hungarian company without being residents of Hungary, although certain legal, administrative, and identification requirements must be satisfied.
This guide explains the company registration process in Hungary, including the main requirements, costs, taxes, banking arrangements, and considerations for foreign shareholders.
Yes. Foreign individuals and international corporate shareholders can generally register and own companies in Hungary.
Hungarian company law allows foreign entrepreneurs to establish businesses without necessarily requiring a Hungarian shareholder or business partner.
In many cases, a foreign investor can own 100% of a Hungarian limited liability company.
This opportunity is available to eligible entrepreneurs from both European Union and non-EU countries.
For example, individuals residing in Germany, Malta, Italy, the United Kingdom, the United States, or other countries may establish a Hungarian company, subject to applicable legal requirements.
However, foreign ownership does not automatically grant the right to live or work in Hungary.
Certain regulated industries and investments may also require additional approvals or authorisations.
The first step in registering a company in Hungary is selecting the appropriate legal structure.
Hungary offers several forms of business organisation, each with different ownership, liability, and capital requirements.
The Hungarian Kft. is one of the most commonly used business structures for small and medium-sized companies.
It is broadly comparable to a private limited liability company in other European countries.
A Kft. offers several advantages:
The minimum registered share capital for a Hungarian Kft. is HUF 3,000,000.
Depending on the incorporation documents and applicable legal rules, the full contribution may not always need to be paid immediately.
For many foreign entrepreneurs, a Kft. is a practical structure for establishing a Hungarian business.
Hungary also offers company structures limited by shares.
A Zrt. is a privately operating company limited by shares, while an Nyrt. is a publicly operating company limited by shares.
These structures may be suitable for larger businesses, investment arrangements, or companies requiring more complex ownership structures.
They generally involve higher capital and governance requirements than a Kft.
A Bt. is a partnership structure involving at least one general partner with unlimited liability and at least one limited partner.
It may be suitable for certain smaller business activities, although the liability arrangements differ significantly from those of a Kft.
For international entrepreneurs seeking limited shareholder liability, a Kft. is often the more straightforward structure to evaluate.
After choosing the legal structure, the next step is selecting a suitable company name.
The proposed name must comply with Hungarian company registration requirements.
Generally, the company name must be sufficiently distinguishable from existing registered company names and must not be misleading.
It must also include the appropriate legal form or abbreviation, such as Kft.
Entrepreneurs should verify the availability of their preferred name before preparing incorporation documents.
A name search can help identify potential conflicts with existing businesses.
It is also advisable to consider trademark availability, domain names, and branding requirements, particularly when establishing an international company.
Every Hungarian company must have a legally compliant registered office address in Hungary.
The registered office serves as the company's official address for correspondence, registration, and administrative purposes.
It is not always necessary to rent a traditional commercial office.
Depending on the business and the arrangements available, a company may use an eligible registered office service.
However, the registered office must satisfy Hungarian legal requirements, including appropriate arrangements for receiving official correspondence and handling required company documentation.
For foreign entrepreneurs managing businesses remotely, selecting a reliable registered office arrangement is particularly important.
A registered office address should not be confused with the location of the company's effective management for tax purposes.
A Hungarian Kft. can generally be established by one or more shareholders.
Shareholders may be individuals or legal entities, including foreign companies.
A Kft. must also have appropriate management representation, typically through one or more managing directors.
Foreign nationals can generally serve as managing directors, subject to applicable eligibility requirements.
During incorporation, information may be required concerning:
Foreign corporate shareholders may also need to provide evidence of their legal existence and the authority of the individuals acting on their behalf.
Hungarian company formation generally requires legal representation.
A Hungarian lawyer prepares or countersigns the necessary incorporation documents and submits the company registration application electronically.
The documents typically establish the company's legal structure, ownership, management, registered office, share capital, and business arrangements.
Depending on the circumstances, documents may include the company's articles of association or deed of foundation, director appointment documentation, identification records, and declarations required for registration.
Foreign-issued documents may require translation, authentication, or other formalities.
The precise requirements depend on the shareholders, directors, and incorporation structure.
A Hungarian Kft. requires minimum registered share capital of HUF 3,000,000.
This represents the company's registered capital rather than a government incorporation fee.
Capital contributions may be made in cash or, where legally permitted, through qualifying non-cash contributions.
Hungarian law allows certain flexibility concerning when contributions must be provided, depending on the company's formation documents.
However, restrictions may apply where capital contributions remain outstanding.
Entrepreneurs should ensure that their capital arrangements comply with applicable company law and are accurately reflected in the incorporation documents.
Once the incorporation documents are prepared and signed, the Hungarian lawyer submits the company registration application electronically to the competent company court.
The application contains the company's required legal and administrative information.
The registration authority examines the application under the applicable company registration procedures.
Hungary provides simplified registration procedures for eligible companies using prescribed documentation, as well as ordinary registration procedures for other applications.
Straightforward applications may be registered relatively quickly once all documentation is complete.
However, registration times can vary depending on the company structure, application type, document quality, and whether additional information is required.
Entrepreneurs should distinguish between the legal registration of the company and the completion of subsequent operational requirements.
Hungarian companies require appropriate tax identification and registration details.
The National Tax and Customs Administration of Hungary, commonly known as NAV, is responsible for administering national taxes.
Company registration and tax registration procedures are interconnected, although additional registrations or notifications may be necessary depending on the business.
A Hungarian company may also require an EU VAT identification number for relevant cross-border transactions.
The tax and VAT obligations depend on the company's activities, expected turnover, customers, and transaction arrangements.
Companies should ensure that the correct tax registrations are in place before commencing activities that require them.
After incorporation, the company must arrange appropriate business banking or payment account facilities.
Hungarian companies may open business accounts with domestic banks such as OTP Bank, K&H Bank, Erste Bank Hungary, Raiffeisen Bank Hungary, or UniCredit Bank Hungary.
Some Hungarian companies may also be eligible for international business payment services, including those offered by Wise Business or Revolut Business.
However, not every payment provider offers accounts to every Hungarian legal structure, and eligibility may depend on the company's directors, shareholders, and business activities.
Businesses should verify applicable Hungarian domestic payment account requirements rather than assuming that any foreign payment account will satisfy them.
Financial institutions generally request company registration documents, director identification, ownership information, and details of the company's commercial activities.
For businesses operating internationally, access to euro payments and SEPA transfers may be particularly important.
Hungary applies a standard corporate income tax rate of 9%, making it one of the EU countries with the lowest statutory corporate tax rates.
However, businesses should consider additional taxes and contributions.
These may include local business tax of up to 2%, calculated on a separate tax base, VAT, employment-related contributions, and certain sector-specific taxes.
Hungary's standard VAT rate is 27%, with reduced rates applying to qualifying goods and services.
International businesses must also consider tax residency, permanent establishment rules, and cross-border tax obligations.
A company registered in Hungary but managed from another country may face additional tax obligations in that jurisdiction.
The total cost of company formation depends on the legal structure, professional services required, and the complexity of the business.
For a standard Hungarian Kft., the principal expenses may include legal assistance, registered office services, translations, accounting arrangements, and banking costs.
The minimum registered share capital is HUF 3,000,000, but this should not be confused with an incorporation fee.
Registration of a standard Kft. is generally exempt from the company court registration fee. Professional and administrative expenses may still apply.
Foreign-owned companies may incur additional costs for document authentication, translation, and international identity verification.
Hungary provides electronic company registration procedures.
Eligible companies using the simplified procedure may receive a company court decision within one working day after a complete application is submitted.
Other applications may take longer.
The overall incorporation process also includes preparing documentation, completing identification checks, signing formation documents, and arranging banking facilities.
Consequently, the total time needed to establish a fully operational business may exceed the formal company registration period.
Foreign entrepreneurs may be able to complete much of the Hungarian incorporation process remotely.
Hungarian legal representatives can submit company registration applications electronically.
Depending on the circumstances, identity verification and document signing may be arranged through legally accepted remote procedures or appropriately authenticated documents.
However, a fully remote incorporation process is not guaranteed for every applicant.
Certain shareholders, directors, or financial institutions may require additional verification or personal attendance.
Entrepreneurs should confirm the available procedures with their Hungarian legal representative before starting.
After incorporation, Hungarian companies must maintain appropriate accounting and administrative arrangements.
These generally include keeping financial records, submitting required tax returns, preparing annual financial statements, maintaining accurate company registration information, and complying with beneficial ownership and other reporting obligations.
Companies employing staff must also satisfy applicable payroll and social security requirements.
Businesses conducting regulated activities may need additional licences or authorisations.
A Hungarian company remains subject to relevant domestic compliance obligations even when it serves only foreign customers.
Yes. Foreign individuals and corporate shareholders can generally establish and own Hungarian companies, subject to applicable legal requirements.
The minimum registered share capital is HUF 3,000,000.
No. Foreign entrepreneurs can generally establish Hungarian companies without residing in Hungary.
A Hungarian Kft. does not generally require its managing director to be a Hungarian citizen or resident. Other legal, tax, and administrative considerations may apply.
The company registration application is submitted electronically by an authorised legal representative. Whether the founders can complete every step remotely depends on the circumstances.
Hungarian companies generally have domestic payment account obligations. The suitability of a particular bank or payment account should be verified against Hungarian legal requirements.
Yes. A Hungarian company may serve international customers and conduct business abroad. However, its management location and foreign operations may create additional tax or regulatory obligations.
Yes. A Hungarian Kft. does not generally need to employ local staff simply because it is incorporated in Hungary.
The standard corporate income tax rate is 9%, although additional taxes may apply.
Yes. Eligible Hungarian companies can open euro-denominated accounts supporting SEPA transfers, subject to the chosen financial institution's requirements.
Registering a company in Hungary can be a practical option for entrepreneurs seeking a corporate presence within the European Union.
The country offers a recognised limited liability company structure, opportunities for foreign ownership, electronic company registration procedures, and a competitive standard corporate income tax rate.
For many entrepreneurs, establishing a Hungarian Kft. involves choosing a company name, arranging a registered office, appointing shareholders and directors, preparing incorporation documents, and submitting the registration application through a Hungarian lawyer.
Once registered, the company must complete its banking, accounting, tax, and operational arrangements.
Foreign entrepreneurs should also consider the implications of managing a Hungarian company from another jurisdiction.
With appropriate professional assistance and a clear understanding of the legal and tax requirements, entrepreneurs can establish a Hungarian company to support domestic and international business activities.
