Company Registration in Hungary: A Complete Guide for Foreign and Local Entrepreneurs

Hungary is one of the most attractive destinations in Europe for entrepreneurs looking to expand their business. With its strategic location, business-friendly tax regime, and access to the EU market, it has become a top choice for investors. If you're planning company registration in Hungary, this guide will walk you through the key steps, benefits, and legal requirements to get started.

Why Consider Company Formation in Hungary?

Setting up a company in Hungary offers several advantages:

• Corporate tax rate of just 9% – the lowest in the EU
  
  

• Access to European Union markets and funding
  
  

• Favorable legal framework for foreign ownership
  
  

• Fast and efficient registration process
  
  

• Skilled, multilingual workforce
  
  

• Cost-effective setup and operational expenses
  
  

Whether you're a startup founder or an established international business, company formation in Hungary allows you to tap into a stable, growth-oriented economy.

Types of Business Entities You Can Register in Hungary

When looking to open a company in Hungary, choosing the right legal entity is critical. The most common types are:

• Kft. (Korlátolt Felelősségű Társaság) – Limited Liability Company
  
  

• Rt. (Részvénytársaság) – Joint Stock Company
  
  

• Sole Proprietorship (Egyéni vállalkozó)
  
  

• Branch or Representative Office – for foreign parent companies
  
  

For most foreign investors, a Kft. is the preferred choice due to its limited liability protection and relatively simple incorporation process.

Steps to Register a Company in Hungary

Here’s a streamlined process to register a company in Hungary:

1. Choose a Company Name
   Ensure it's unique and complies with Hungarian naming rules.
   
   

2. Draft and Sign the Company Documents
   Includes Articles of Association and other legal paperwork.
   
   

3. Appoint a Registered Office Address
   All companies must have a physical address in Hungary.
   
   

4. Open a Corporate Bank Account
   Deposit the required share capital (minimum €3,000 for a Kft.).
   
   

5. Submit Registration to the Court of Registration
   Incorporation is usually completed within 1–2 business days.
   
   

6. Obtain Tax and EU VAT Numbers
   Essential for trading within Hungary and across EU borders.
   
   

7. Register with Social Security and Local Authorities
   If you plan to hire employees or operate physically in Hungary.
   
   

The entire company incorporation in Hungary process is highly digitized and can often be completed remotely with professional assistance.

Opening a Company in Hungary as a Foreigner

Hungary welcomes foreign investors with minimal restrictions. You can fully own a business as a non-EU citizen, and directors do not need to reside in Hungary. However, having a local representative or legal advisor helps streamline procedures and maintain compliance.

If you're planning on opening a company in Hungary from abroad, it's important to:

• Understand Hungarian corporate law and tax obligations
  
  

• Prepare certified translations of your documents (if needed)
  
  

• Appoint a local accountant or service provider for ongoing compliance

Post-Incorporation Requirements

Once your company is established, you must:

• Maintain proper bookkeeping and accounting
  
  

• File annual tax returns and financial reports
  
  

• Pay social contributions (if employing staff)
  
  

• Stay updated with Hungarian and EU legal regulations
  
  

By staying compliant, your company formation in Hungary will remain valid and fully operational without disruptions.

Why Choose Professional Help for Company Incorporation in Hungary?

The legal and administrative steps may seem complex—especially if you're not familiar with the local language or business culture. A trusted partner can help you register a company in Hungary efficiently by:

• Handling document preparation and filings
  
  

• Offering local registered office services
  
  

• Opening bank accounts and VAT registration
  
  

• Providing legal, accounting, and tax advisory support

Ready to Open a Company in Hungary?

Hungary offers a unique mix of low taxation, central EU access, and fast-track incorporation. Whether you're expanding your global operations or starting a new venture, company registration in Hungary can be a smart move.

Get professional assistance to ensure a seamless, compliant process and start operating in one of Europe’s most promising business destinations today.