Company Formation in Hungary

START YOUR BUSINESS IN HUNGARY — THE LOWEST CORPORATE TAX RATE IN THE EU AND A GATEWAY TO CENTRAL EUROPE

Company Formation in Hungary

OVERVIEW

Incorporation in Hungary

Hungary offers the lowest corporate income tax rate in the European Union at a flat 9%, with no capital gains tax, making it one of the most tax-efficient jurisdictions for international businesses. Located at the heart of Central Europe, Hungary provides full access to the EU Single Market and serves as a strategic hub for operations across Eastern and Western Europe. The country has a fast-growing technology, manufacturing, and shared services sector, with Budapest emerging as a leading business and startup destination in the region. Foreign entrepreneurs can own 100% of a Hungarian company with no residency requirement. The entire formation process can be completed remotely via a Power of Attorney, with no travel to Hungary required. Formation typically takes 3–6 weeks including Company Registry approval, bank account opening, and tax registration.

Why Hungary?

9% Corporate Income Tax — Lowest Flat Rate in the EU
No Capital Gains Tax
Full EU Single Market Access — 27 Member States
100% Foreign Ownership Permitted — No Local Partner Required
Fully Remote Formation via Power of Attorney — No Notarization Required
Fast Formation — Completed in 3–6 Weeks

Requirements

General Requirements for Hungary Company Formation

Company Name

Must be unique and approved by the Hungarian Company Registry (Cégbiróság). Must include the suffix Kft., Zrt., or Nyrt.

Entity Type

Kft (most common), Zrt, Nyrt, or Branch Office (Fióktelep)

Office Address

A physical Hungarian business address is mandatory. CORPEASE provides a registered headquarter address service.

Minimum Share Capital

HUF 3,000,000 (~€7,500) for Kft. At least 50% of cash contributions must be paid at time of registration. Remaining 50% can be contributed within one year.

Minimum Shareholders

1 shareholder for Kft, Zrt, and Nyrt.

Minimum Directors

1 Managing Director (Ügyvezető) for Kft. Must be a natural person — legal entities cannot serve as directors in Hungary.

Foreign Ownership

100% foreign ownership permitted. No local partner required.

Owner Identification

1. Certified Copy of a Passport 2. Certified Copy of a Utility Bill (e.g., Gas / Electricity) or Bank Statement (dated within the last 3 months) 3. Selfie (photo of the owner holding their passport)

Articles of Association

Társasági Szerződés drafted by CORPEASE and filed electronically. No notarization required for Kft.

Verification Requirement

A Power of Attorney (POA) with handwritten signature is accepted. Fully remote process — no in-person visit, notarization, or apostille required. Filed electronically via Hungary’s e-Cégjegyzék system.

Hungarian Bank Account

All Hungarian companies are required by law to open a Hungarian business bank account within the first week of company incorporation.

Certified Accountant

An accountant registered with Hungarian authorities is required for all companies. Responsible for periodic financial reports submitted to NAV (Tax Office), KSH (Statistics Bureau), and other authorities.

Tax Registration

Corporate income tax (9% flat) and local business tax (HIPA — up to 2%) registrations are completed automatically upon Company Registry approval. VAT registration (ÁFA) is a separate application to NAV — mandatory above HUF 12,000,000 (~€30,000) annually, or voluntary from incorporation. No capital gains tax in Hungary.

COMPANY TYPES

Which Company Types We Serve

Kft — Korlátolt Felelősségű Társaság (Private Limited Company)

The most common and recommended entity type for foreign investors. Minimum share capital of HUF 3,000,000 (~€7,500) is required, of which at least 50% of cash contributions must be paid at the time of registration. Offers limited liability protection and straightforward administration.

Best for:

Foreign entrepreneurs and international investors
SMEs, startups, and consulting firms
Technology, manufacturing, shared services, and e-commerce
Companies seeking a low-tax EU base with simple administration

Zrt — Zártkörűen Működő Részvénytársaság (Private Joint Stock Company)

Suitable for larger businesses seeking a formal share structure. Requires minimum share capital of HUF 5,000,000 (~€12,500). Allows share issuance to a closed group of shareholders.

Best for:

Larger enterprises requiring a formal share-based structure
Companies planning to issue shares to a defined group of investors
Joint ventures between multiple corporate entities

Nyrt — Nyilvánosan Működő Részvénytársaság (Public Joint Stock Company)

Equivalent to a public limited company. Requires minimum share capital of HUF 20,000,000 (~€50,000). Suitable for companies planning to list on the Budapest Stock Exchange.

Best for:

Large corporations planning to list publicly
Businesses raising capital from the general public

Fióktelep (Branch Office)

An extension of a foreign parent company. Not a separate legal entity — parent remains fully liable.

Best for:

Foreign companies testing the Hungarian market
Short-term or project-based operations

Comparison

Kft vs Zrt vs Nyrt — Which Structure Is Right for You?

Kft

Zrt

Nyrt

Branch

Best for

SMEs, foreign investors

Private share issuance

Listed companies

Foreign extension

Min. share capital

HUF 3M (~€7,500)

HUF 5M (~€12,500)

HUF 20M (~€50,000)

None

Paid-up at registration

50% of cash contribution

30% of total capital

25% of total capital

N/A

Min. shareholders

N/A

Director must be natural person

Yes

Foreign ownership

100% permitted

Parent company

Corporate tax

9% flat

Capital gains tax

None

Notarization required

Yes

Formation time

3–6 weeks

4–8 weeks

6–10 weeks

3–5 weeks

Our Recommendation

For the majority of foreign entrepreneurs, the Kft is the most practical and cost-effective starting point. It offers full limited liability, 100% foreign ownership, and Hungary’s 9% flat corporate tax rate with no capital gains tax.

Process

From Enquiry to Operation — Formation Timeline: 3–6 Weeks

A clear, predictable process — so you always know what happens next.

Step one

Free Consultation

We assess your business needs, recommend the right entity type, and provide a full transparent quote. No obligation, no charge.

Step Two

Document Preparation

We prepare all incorporation documents — Articles of Association (Társasági Szerződés), shareholder resolution, director appointment, and registered office declaration — in Hungarian, with English translations upon request.

Step Three

Signature & Electronic Filing

A POA with handwritten signature is accepted. No notarization or apostille required. Documents filed electronically via Hungary’s e-registration system (e-Cégjegyzék). Estimated: 1–2 weeks.

Step Four

Official Registration & Bank Account

Company Registry Court approves the application and issues the Certificate of Incorporation and Company Registration Number. A Hungarian business bank account must be opened within the first week of incorporation — CORPEASE assists with bank account introduction.

Step Five

Tax Registration & Accountant Engagement

Corporate tax and local business tax registrations are completed automatically. VAT registration applied for separately. A certified accountant is engaged to manage ongoing reporting to NAV and KSH. Total timeline: 3–6 weeks.

Annual Requirements

Ongoing Annual Obligations

All Hungarian companies are required to meet the following annual compliance obligations.

Annual Financial Statements

Annual Beszámoló prepared by certified accountant and filed with the Company Register. Costs vary by company size and transaction volume.

Corporate Income Tax Return

Annual Társasági Adó return filed with NAV. Flat 9% rate — lowest in the EU. No capital gains tax.

Local Business Tax (HIPA)

Helyi Iparűzési Adó — up to 2% of adjusted net revenue. Filed annually with the relevant local municipality.

VAT Returns

Monthly or quarterly ÁFA returns filed electronically with NAV. Standard rate 27%; reduced rates of 18% and 5% for certain goods and services.

Statistics Bureau (KSH) Reporting

Periodic statistical returns submitted to the Hungarian Central Statistical Office (KSH) by the certified accountant.

Office Address Renewal

Registered address must be maintained at all times. Renewal coordinated by CORPEASE under the Premium package.

Payroll & Social Security

Monthly payroll tax returns and social security contributions to NAV for companies with employees.

Pricing

See our price list & choose your plan

All prices are in US Dollars. Government fees and third-party costs are included where specified.

Standard

Starting from

US$ 1,999

Includes:

Company name availability check
Preparation of all incorporation documents
Electronic filing with the Hungarian Company Registry
Business registration
All government fees
One set of digital corporate documents

Not included:

Premium

Starting from

US$ 3,499

Everything in Standard, plus:

Virtual office address — 1 year
Tax registration — corporate tax number and VAT registration
Bank account introduction assistance
Corporate secretary service — 1 year
Automatic compliance reminders and deadline tracking

Annual Compliance Services

Office address renewal (included in Premium package; new lease required for Standard)
Annual financial statements (Beszámoló) — costs vary based on company size, number of transactions, and complexity
Local business tax filing (HIPA) — up to 2% of adjusted net revenue
Statistics Bureau reporting (KSH) — periodic returns managed by certified accountant

Connect with our Experts

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

Under 0 transactions

per month

Starting from

US$ 3,000^/year

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

1-50 transactions

per month

Starting from

US$ 4,000^/year

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

Connect with our Experts

Costs vary based on company size, number of transactions, and complexity. Connect with our Experts — you can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

FAQs

Frequently Asked Questions

Can a foreigner own 100% of a Hungarian company?

Yes. Hungarian law permits 100% foreign ownership of Kft and Zrt entities. No local partner, shareholder, or director is required.

Do I need to travel to Hungary to register a company?

No. The entire formation process for a Kft is completed remotely via a Power of Attorney (POA) with a handwritten signature — no in-person visit, notarization, or apostille required.

How long does formation take?

Typically 3–6 weeks including document preparation, electronic filing, Company Registry approval, bank account opening, and tax registration.

What is the corporate tax rate?

Hungary has a flat 9% corporate income tax rate — the lowest in the EU. There is no capital gains tax. A local business tax (HIPA) of up to 2% also applies.

How much of the share capital must be paid at registration?

For a Kft, at least 50% of cash contributions must be paid at the time of registration. The remaining 50% can be contributed within one year of incorporation.

Is a Hungarian bank account required?

Yes. All Hungarian companies are legally required to open a Hungarian business bank account within the first week of incorporation. CORPEASE assists with bank account introduction.

Is a certified accountant required?

Yes. All Hungarian companies must engage a certified accountant registered with Hungarian authorities. The accountant is responsible for financial reports submitted to NAV, KSH, and other authorities.

Does Hungary require notarization for Kft formation?

No. A Kft does not require notarization. Documents are filed electronically via Hungary’s e-registration system. A POA with a handwritten signature is sufficient.

Is VAT registration mandatory?

Mandatory once annual taxable turnover exceeds HUF 12,000,000 (~€30,000). Voluntary registration from incorporation is also available. Standard VAT rate is 27%.

Can a Hungarian company trade across the EU?

Yes. As an EU member since 2004, Hungary provides full access to the EU Single Market — trade freely across all 27 member states and apply for EU tenders and funding programs.

How much does it cost?

Standard from US$ 1,999, Premium from US$ 3,499. All prices include government fees and document preparation. Contact us for a full transparent quote with no hidden charges.

YOUR GLOBAL COMPLIANCE PARTNER

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