Establishing a Company in Hungary
Establishing company in Hungary is quite easy and accessible even for non-Hungarians. It takes 2 – 7 days. We give you all the information needed to establish a company in Hungary.
It is possible to establish a company only through a lawyer in Hungary. Normally one meeting with him is sufficient. With his help you sign all the required documents and then he processes all the formalities.
When speaking about company, we mean so-called “KFT”. That is the most popular type of company, because its partners are not responsible for company´s debts.
What is needed to establish a company in Hungary?
Memorandum of association. This is the main document determining the rights and duties of the company´s shareholders.
Identification of the shareholders – Both natural and legal persons can become a shareholder in a company in Hungary. It is important to know the difference in taxation of legal and natural persons, which is as follows:
- Foreign natural person dividend tax rate is 16 %
- Foreign legal person dividend tax rate is 0 %.
- Corporate income tax rate is 10 %, if the profit exceeds 500 million HUF (1.6 million eur) tax rate is 19 %
Identification of the executive directors (persons acting in the name of the company). EU-citizens can become executive director without any restrictions. Persons who are not EU-citizens need residence permit.
Trade license. To carry out business, trade license is required. Depending on what kind of business the company intends to carry out, it needs
- Unqualified trade license – is accessible for everyone, irrespective their education or
- Professional trade license – is only accessible for persons with certain education or qualification.
A right to use immovable property as a company´s seat. Company can use a property as its seat only if it can prove its right for such use. That means company needs to obtain an ownership title of the property (title deed), a lease contract or just an informal consent of the owner.
Stock capital. Minimum stock capital is 3 000 000 HUF (about 9700 €). It is not required to pay the stock capital to a separate bank account. Declaration on oath is sufficient.
VAT registration is obligatory if the turnover exceeds 6 million HUF (about 19 500 eur). Tax rate is 27 %.
How the process of setting up a company (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.
What is the cost of forming a company in Hungary?
How long will it take to incorporate your company (kft.) in Hungary?
Optional company formation services in Hungary:
Virtual registered office in Hungary from EUR 32/month
Accounting for your company in Hungary from EUR 40/month
- 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.