Company Formation in Hungary
Company formation in Hungary is easy and available even for non-residents. It takes about 2 – 7 days. We provide basic information about company formation in Hungary.
Only lawyers are authorized to form a company in Hungary. Normally all that is needed is one meeting with lawyer. With his help, partners of the company sign necessary documents. The lawyer will then process all the required formalities. The most common type of company is KFT, because its partners are not liable for company´s debts.
What needs to be prepared before company formation in Hungary?
Memorandum of association. It is the most important document. The rights and duties of the partners are determined by it.
Identification of the partners of the company. In Hungary both legal and natural persons are allowed to become a partner. But it is important to note, that the dividend tax of legal persons differs from dividend tax of natural persons.
Taxation is as follows:
- Tax rate of dividend tax for foreign natural person is 16 %
- Tax rate of dividend tax for foreign legal person is 0 %.
- Tax rate of corporate income tax is 10 % and if the company´s profit exceeds 500 million HUF (1.6 million eur) tax rate is 19 %
Identification of the executive directors. Executive directors are persons who act in the name of the company. There are no restrictions for EU-residents to become an executive director. Persons who are not EU-residents must obtain residence permit.
Trade license. To carry out business, company must obtain a trade license. There are two types of licenses:
- Unqualified trade licenses – these are accessible for everyone,
- Professional trade licenses – these are only accessible for persons with certain education or qualification
A prove company is allowed to use a property as a registered seat. To prove this a relevant document must be submitted. That means a title of ownership of the property (title deed), a lease contract or just an informal approval of the owner of the property.
Stock capital must be at least 3 million HUF (about 9 700 eur). It is not needed to pay the stock capital to an individual bank account. Declaration on honour is sufficient.
VAT registration is mandatory only if the company´s turnover exceeds 6 000 000 HUF (about 19 500 eur). Tax rate of value added tax is 27 %.
How the process of company formation (kft.) in Hungary works:
- During the initial consultation, you will tell us your precise business vision. We will help you select suitable core business activities, an address for the company’s registered office, a trading name and other essential particulars required to draft the incorporation documents. Consultations can be in person, by telephone or by e-mail.
- We will prepare all the documentation required to form a company in Hungary (kft.), which must then be signed in the presence of our lawyer.
- Once the documentation is signed, you will give us authorisation to represent you at the Commercial Register, Trade Licence Register and the Tax Office.
- We will pay all the required fees for you at the Commercial Register.
- If requested, we will register your company for VAT.
- Once the company has been registered in the Commercial Register, we will give you the entire documentation, including an extract from the Commercial Register of Hungary.
How long will it take to incorporate your company (kft.) in Hungary?
7 business days.
Optional company formation services in Hungary:
- Virtual registered office in Hungary
- Accounting for your company in Hungary
Our services are contractually guaranteed:
- Fixed price with no hidden fees.
- Your company will be registered in the Commercial Registry within the agreed time, guaranteed.
- Services throughout the Slovak Republic, Czech Republic and Hungary are provided by a contracted partner of podnikajte.sk, FONTIONNEL s.r.o., which has already served more than 2,500 satisfied clients.
Interested in our service or need some advice?
Contact us by filling our enquiry form or by phone during work days from 9:00 to 16:30. We speak English, Slovak, Hungarian and Czech.
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