Company Formation Hungary: Everything You Need to Know
The complexity of the process of company registration in Hungary varies depending on the type of the company you choose.
Every company set up from abroad needs a legal representative – a Hungarian attorney. If you delegate the process, you can avoid the costs of multiple trips and prolonged stays in Hungary. Also, an attorney can help you with every step of the process.
There are many considerations to be made before company formation. Hungarian business laws, opportunities, and registration process specifications are among the most important. The process is generally straightforward and you can choose between several company types.
FirmaX core services include swift and precise company formation in Hungary at fair prices. FirmaX product portfolio includes ready-made company registration packages among which clients may choose the best option that fits their needs. Upon request, customized Hungarian company registration packages can also be provided. Services may also be requested on an individual basis.
Company formation as of EUR 999
(incl. registration fees)
How does it work?
As a first step, we will check the availability of the desired company name at the Court of Registration. If the desired corporate name is already reserved by another company, we will suggest some alternative names based on your original idea. Once the company name is fixed, the company formation in Hungary requires the preparation and signing of the necessary incorporation documents. If you are in Hungary, we will arrange the signing of the incorporation documents at our office. Since the documents do not need to be signed in Hungary, the signing may be completed in your home country as well. In this case, however, notarization of the company incorporation documents is required. Upon receiving the duly signed documents, they will be submitted to the Court of Registration, where the company formation process is completed. The registration itself takes 1 business day.
Please visit the Download area in order to find more information about Hungarian corporate law and the Hungarian company registration. You can also download guides which will give you an insight into the necessary corporate requirements for the specific company forms in Hungary.
If you decided to register a company in Hungary, please fill out the below form with all the requested information and send it back to us via email or facsimile.
Types of Companies You Can Open in Hungary
If you’re interested in setting up a company in Hungary, there are several types of companies at your disposal. Each has its own advantages and drawbacks, as well as registration rules. Also, all company types have their limitations in regards to approved business activities.
Here is a brief overview of the main company forms a foreign company or individual can open in Hungary. The following company types all require a legal personality.
Limited Liability Company
If you’re looking to establish a medium or small business in Hungary, your best bet is to go with a limited liability company (Kft). In this case, you will need a starting share capital of 3,000,000 HUF.
Have in mind that the incorporation procedure might differ slightly depending on the type of business the company is involved with. You might need to get special licenses and permits. The owners are only liable for their share of the invested capital. This is one of the least risky options.
If this is not the best fit for your activities, there are other company forms available in Hungary.
This type of company (Bt) must have one general (unlimited) partner and one limited partner. The former has unlimited liability, while the latter’s liability is determined by the size of their capital contribution. You don’t need starting capital to form a limited partnership.
In general, and if not specified otherwise in the articles of association, only the general (unlimited) partner can represent the company. When it comes to company registration, in Hungary you will have to pay 50,000 HUF to register a limited partnership.
A possible downside to registering this type of company is that the main partner is completely liable and bears the highest risk.
If you decide to establish a general (unlimited) partnership, all partners are fully liable and responsible for the company’s operations. You will need at least one partner other than yourself. There is no minimum in terms of the starting capital. To register the company, you will need to pay a registration fee of 50,000 HUF.
All partners can represent the company unless stated otherwise in the articles of association. There are no specific requirements in terms of management. You don’t need a board of directors or supervisory board to establish a general partnership.
In terms of risks, have in mind that you and your partner(s) are completely liable for all the losses and debts incurred by the company.
Joint Stock Company
If you’re planning to establish a joint-stock company (JSC), you have two options – public (Zrt) and private (Nyrt). The minimum requirement for both types is that the company has at least one shareholder of any nationality. Each Hungarian company set up as a JSC, both private and public, needs to have a board of managing directors.
Where these two types do differ is the required capital at the time the company is registered. For the public option, it is 20,000,000 HUF (Hungarian Forint), while for the private it is 5,000,000 HUF.
If you opt for a JSC, you will need to have your annual financial statements and balance sheet audited by a professional accountant and submit them with your company register annually. When it’s time for company registration, in Hungary you will have to pay 100,000 HUF to register a private JSC and 600,000 to register a public one.
Every foreign company can open a branch office (Fa) in Hungary. You will have to have a resident legal representative if you opt for a branch office that will submit annual returns. The registration fee is 50,000 HUF. The main risk with establishing a branch office is that the parent company holds the full (unlimited) liability for all its activities.
Did you know?
Setting up a company in Hungary is easy!
Company registration in Hungary takes only 1 business day!
Documents You Will Need
Company registration in Hungary, though fairly simple, involves a certain amount of paperwork. Here’s what you’ll need:
- A valid passport for the owner(s) and general manager(s)
- Founding documents and declarations of the CEO
- Agreements of assignment
- Specimen of signature
All of these documents have to be counter-signed before registration and submitted to the authorities by a Hungarian attorney. The submission can only be done electronically. Therefore, you will need to scan all the necessary documents once they’re signed. All documents have to be signed with a qualified electronic signature.
You can opt to go to Hungary and be present during the process or you can allow the attorney to represent you fully and do all the necessary work on your behalf. The latter option is called Power of Attorney.
You should have in mind that all the documents that are not in Hungarian will need to be translated to Hungarian. First, you will sign the documents with the attorney and then proceed with the registration process.
Mandatory Registrations and Other Necessities
Once all the documents are collected and signed, you will go with your attorney to the Hungarian Court to register the company. The procedure at the court of registration usually takes one day. After that, you will have to register with a number of other organizations and authorities in Hungary.
First, you will have to register with the local tax office and Hungarian tax authority – Central Tax Office. This is compulsory for all companies. There’s an option called “one-stop-shop” where the court gets the statistical code and tax number directly from the Statistical Office and tax authority instead of you.
You will also have to register with the Chamber of Commerce. You can do this in person or authorize the attorney to do it on your behalf.
Every company registered in Hungary must also have a bank account in Hungarian forints. Foreign currency accounts can be opened, but they’re optional. Opening a bank account takes approximately one day.
Additionally, every company registered in Hungary must have a registered office at a publically available address. Therefore, you will also need to register a physical address for your company. Your attorney can do that for you, as well.
You will also have to register your company with the Trade Registry for social security and obtain their certificate. Finally, every company must be registered with the Statistical Office.
Registering with additional authorities is free of charge but compulsory. The process usually takes 2-15 days. If after court registration you fail to register with authorities within the legal time frame, you and your company might face serious legal trouble.
After getting in touch with an attorney in Hungary, you should prepare and translate all the needed documents and sign them with your attorney. This includes obtaining a legal Hungarian address for your company. You then need to open a bank account.
Your attorney then submits the application electronically to the Court of Registration. The documents will be recorded and stored in the court’s database. You will be issued an electronic certificate of registration. If you use the “one-stop-shop” system, the court will get your statistical code and tax identification numbers for you.
Finally, you should register with local and central tax authorities, Central Administration of National Pension Insurance, and Chamber of Commerce, and provide data on employees to your local tax authority.
Opening a company in Hungary is easier and simpler than in most other countries. However, you should thoroughly study the laws and requirements to avoid any potential trouble.
Clients say about FirmaX:
“We made our company registration in Hungary with FirmaX and it was easier than expected! They were very professional and proactive and yet they offered the best price on the market.” Matthew from London