Hungary Company Formations

Hungary Company Incorporation
  • Reserving your Company Name
  • Liaising with the local registrar and relevant authorities
  • Structuring the company as per your requirements
  • Prepare your Company Registration Forms
  • Drafting the Articles of Association / Statutes
  • File the documents with the Companies Registry
  • Appoint the Directors
  • Minutes appointing first Directors
  • Preparation of the first minutes of Board Meeting
  • Initial Government licence fee payable on incorporation
  • Certificate of Incorporation
  • Issue of shares and production of Share Certificates
  • All documents and certificates supplied in a professional folder
  • Delivery of documents by FedEx / DHL courier
  • Notarised Specimen Signature Card of Director
  • Application for Certificate of Paid Up Capital
  • Application for Registration, Tax and Statistical Number
  • Publication in the Official Journal

Articles of Association

The articles of incorporation specify the following:

  • Company name
  • Location of registered office
  • List of the company’s members and their addresses
  • Company’s business activities
  • Amount of the capital
  • Method of the company’s registration
  • Names and addresses of the company’s officers
  • Duration of the company, if founded for a fixed period of time

Company Registration

The Articles of Association, or the Deed of Foundation, must be drafted and signed by a Hungarian attorney.

The Company Act determines the minimum basic information that such founding documents should contain, such as the company name, domicile, capital founders/owners, basic data on the executive officers etc. Limited or limited liability companies can be established using model Articles of Association annexed to the new Company Procedure Act.

The registration application must be filed with the Hungarian Court of Registration within 30 days from the conclusion of the Articles of Association.

Once the registration is submitted, the company may start its operations as a pre-company until the registration is made. The Court of Registration must decide on the registration within 15 days in the case of business entities submitting for registration using the model Articles of Association annexed to the new Company Procedure Act (and within 2 days in case of electronic registration), or otherwise within 30 days. These periods commence at the delivery of the application to the Court of Registration. If the Court fails to meet these deadlines, the company is considered to be automatically registered on the 9th day following the expiry of the deadline

A newly registered company must also register with the local municipality, State Taxation Office, Central Statistical Office and Social Security Authorities.

On submitting an application to incorporate, the following details should be provided:

  • A commercial license.
  • Documents of incorporation.
  • Company name and the address of its registered offices or of its owners.
  • Location of the company's activities.
  • Type of activities - In Hungary, when incorporating a company, it automatically becomes a member of the local Chamber of Commerce.

Apart from submitting the above documents for registration, the company must register with the following bodies:

  • The Central Office of Statistics (KSH)
  • National Income Tax (APEH)
  • Regional Income Tax
  • The (Regional) Court of Registration
  • The Institute of National Insurance


A Kft. is a company limited by quotas or business shares similar to a German GmbH. The English equivalent is a private limited liability company. A Kft. can be owned by a single person, however there are further regulations imposing an increased level of liability upon single owners of companies.

Hungary - KFT Company Incorporation

Private limited company. Liability is limited to the amount of capital paid up, with the minimum currently set at HUF 500,000 (€1,700). This is the most common form in Hungary and may be owned by a single individual, several individuals or a holding company.

Incorporating your Hungarian KFT

The procedure of a company formation in Hungary is very quick and simple.

Once the necessary details are collected (details of directors, shareholders, company name, activity, and required services) we then prepare the statutory documents, Articles and Memorandum, Specimen Signature. Within a few days when the client can either visit to Hungary to sign the documents before a lawyer or the documents get sent to the client via email in order to have it notarised before the consular department of Hungarian embassy in his/her country.

  • After we receive the relevant documents we file the company with Registry Court.
  • Due to electronic filing the physical incorporation only takes one day.
  • Domestic tax number and VAT number is issued along with Certificate of Incorporation.

After the company is incorporated the bank account can be opened. It can be done by the client or we can assist if personal presence is impossible. Share Capital HUF500,000 must be deposited into the account until the bank issues the certificate of payment.


  • Directors may be of any nationality.
  • Only one director is required.


  • Shareholders may be of any nationality
  • Only one shareholder is required. This can be the same person as the director.
  • The shareholder can be a person or a corporation.

Benefits of Incorporating in Hungary

  • Member of the European Union giving it substantial EU benefits
  • No withholding tax on dividends, interest or royalties paid to foreign entities
  • Benefit from Hungary's double taxation agreements
  • No currency restrictions - the company may have any form of bank account in any foreign country
  • Flexible share ownership - a foreign company may own shares in the company aiding in business secrecy
  • European Union tax ID - trade with all EU Member States free of VAT


A Kft. may have one or more quotaholders (members), who may include both foreign individuals and foreign legal entities. Membership of a Kft. is evidenced by entering the names of members into a list of members which the directors of the Kft. maintain. A quota in a Kft. is indivisible, must be denominated in Hungarian Forints, divisible by 10,000 and may not be less than HUF 100,000. Voting and dividend rights can be set out in the deed of association, subject to the proviso that at least one vote must be allocated per stake of HUF 100,000.

Full of advantages

  • A single member is eligible to form a company
  • Only one managing director needs to be appointed (who may be a foreigner).
  • Company registration within a few days.
  • Immediate VAT number with the eligibility to trade with all EU Member States free of VAT.
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Hungary Advantages
  • Time - only 1 week to incorporate your Hungarian company
  • Cost - a Hungarian company will cost £2000
  • Directors - only 1 director of any nationality is necessary for your company
  • Share Capital - the minimum share capital requirement is HUF 500,000 (€1,700)
  • Shareholders - only 1 shareholder is required
  • Tax - a beneficial tax environment
  • VAT - immediate VAT number with the eligibility to trade with all EU Member States free of VAT
  • Support - using our 20 years experience we guide you throughout every step of the company formation process