Company registration process in Hungary

So, you have decided to get a Hungarian passport or just start a business in Hungary. To do this, you need to open a company in Hungary. Therefore, it will be necessary to come to Hungary to register your company. It is better to plan a trip for at least one week.

To draw up documents for the company, you should contact a Hungarian lawyer who has the appropriate license, or simply contact us directly and in this case our specialists will help you.

The lawyer will prepare the company's articles of association, signature sample forms, an application to the Hungarian registration court and other Required documents. You will also need to have your passports on hand, come up with a name for the company and determine the type of activity - what the company will do in the future. Number of founders for Kft. unlimited, each of the founders can apply for a business visa.

It is also better for you to get yourself a guarantor - a citizen or resident of Hungary with a permanent residence permit, and a legal address where the company will actually be located.

Then the charter of the company in the presence of a lawyer is signed by all the founders of the company, and the lawyer certifies with his seal. Then the samples of signatures of the executive directors of the firm should be certified. Founders usually become executive directors with the right of first signature.

Next important point- opening a current account of the company and depositing half of it authorized capital. For Kft. the minimum authorized capital is 3,000,000 forints. Therefore, it is necessary to deposit at least HUF 1.5 million, which in the case of foreigners must be deposited in hard currency at the bank rate on the day the account is opened. The second half of the statutory fund may be paid later in installments no later than one calendar year from the date of registration of the company.

After receiving from the bank a certificate of depositing funds and an agreement on banking services for the company, the lawyer completes the documents, registers the company with the Chamber of Commerce and Industry and takes the documents to the registration court, where he will receive a temporary permission to register your company. The decision on the registration of the company must be made by the court no later than 60 days from the date of filing the documents.

After obtaining temporary permission to register your company, you are assigned a tax number, a KSH number, and a health insurance number.

Starting from this moment, your company can begin to function and generate income. Now you can withdraw half of the statutory fund from your current account.

After that, the company must be put on accounting records. To do this, you can contact accounting firm or to us. We will select an experienced accountant for you and help you draw up a direct accounting agreement. service for your company.

After that, having spent at least working week, you can go home.

Having received from the registration court a notice of the final decision to register a company, you can proceed, if desired, to a more difficult stage - obtaining a Residence Permit ...

Starting a business in Hungary, one of the EU countries, is very beneficial for foreigners and, in particular, Russians.

Map of the countries of the world

Hungary as a starting point for business has a number of advantages for a Russian businessman. Investors from other countries bring a lot of income to Hungary, so real assistance is provided at the state level to a novice businessman. To open a business,

• Simplified system of accounting and tax reporting.
• Low taxes.
• Treaties on the absence of double taxation with Russia and many other countries.
• Registration without personal presence.
• Possibility of buying a ready-made company.
• Low cost of purchasing and renting office and warehouse space.
• Opens the way to entrepreneurial activity in other European countries.
• Opportunity to obtain and permanent residency in the future for a businessman and his family.
• Fast receipt of VAT numbers (VAT).
• Participation in the business of citizens of Hungary is optional.
• Fast business registration (from 7 to 14 days).
• Visa-free movement in the countries that are part of the Schengen area.
• VAT is not fixed, it is different for each area.
• Opportunity to lend business in banks throughout Europe.

An example of a residence permit in Hungary

Knowledge of English by Hungarian businessmen.

4 types of organizations in Hungary: what is the most beneficial for Russians

1. open joint-stock company with limited liability - Rt (Reszvenytarsasag).
2. Partnership:

Limited - Bt (Betiti tarsasag).

With unlimited liability - Kkt (Kozkereseti tarsasag).

3. Analogue LLC - Kft (Korlatolt Felelossegu Tarsasag).

In the first place of all types organized by foreigners in Hungary is Kft. It is nothing more than an analogue of the Russian LLC. Ideal for a small number of founders.

Reasons for the popularity of Kft:

• No issue of shares by the entity.
• Statutory fund from three million forints.
• Unlimited number of founders.
• Full ownership of the enterprise by a foreigner is possible.

If there is more than one founder, then it is possible to deposit 50% of the authorized capital first, and the remaining part is paid within a year (for Rt, it is enough to deposit 25% first).

Choice of sphere: which are the most popular in Hungary

Comparison of the Hungarian average salary

But this type is fraught with a certain danger, since it is seasonal, which means that you need to evenly spend profits so as not to become bankrupt in the off season.

Hungary's policy supports new scientific research and the expansion of the service sector.

Documentation and conditions for opening a business

Registration of an organization by a foreign citizen in Hungary takes place through the mediation of a lawyer from this country. The lawyer must be licensed.

The process of collecting and preparing documentation takes seven days.

Preparation of documents and their submission to the registration authorities takes place only with the help of a lawyer. When starting a business, it is best to use the services of a Russian-speaking lawyer.

The lawyer must provide the following information:

1. Company name (in Hungarian).
2. Field of activity.
3. Founder registration.
4. Founder's passport.
5. The amount of contribution to the authorized capital of each founder.
6. The real legal address of the organization.

Needed to register a company:

1. Power of attorney for a lawyer.
2. Application to the registration chamber.
3. Articles of association.
4. Samples of signatures of founders on forms.
5. Personal documents of the future owner.

It is advisable to find a guarantor with Hungarian citizenship.

He must have:

• Resident card.
• Legal address (on which you will register your organization).

At this stage, you need to pay the state fee and pay to the registration chamber.

Official name - Hungary
Capital - Budapest
Population - about 9,795,508 people
Total area - 93,030 km 2
Official languages ​​- Hungarian
National currency - Hungarian forint, HUF

Index of economic freedom - place 58
World Bank Ease of Doing Business ranking - place 41
Global Competitiveness Index - place 69
Corruption Perceptions Index - place 57

Hungary - a state located in the center of Europe, has no access to the sea. Despite the absence of maritime borders, the favorable location of Hungary is due, in particular, to the fact that Budapest is crossed by the longest river in the EU - the Danube, which is the so-called "artery" through which goods from the Black Sea basin are delivered to European countries. More and more highways European level also passes through Hungary, which allows it to occupy key positions in the EU logistics market.
This jurisdiction is not included in the list of offshore, which is important considering modern tendencies development of the world economy and international relations, the orientation of the world community towards increasing the transparency of the characteristics of doing business. Thus, the registration of a company in Hungary, accompanied by the opening of an account in one of the Hungarian banks, is effective tool international tax planning, not related to offshore companies.

Economy of Hungary

Hungary is an industrial country with a dynamic pace of economic development. As a relatively “young” member of the EU, the country nevertheless demonstrates good economic indicators. Political stability also plays into the hands of Hungary.

Advantages of this jurisdiction:

• since 2017 - the lowest income tax rate in the EU - 9% (+ municipal tax 0-2%);
• no tax on dividends (zero rate);
• low tax rates on passive income;
• not offshore jurisdiction;
• the company is a resident of Hungary on the principle of registration, regardless of the place of management;
• registering a company and opening a bank account in one country;
• reliability of the Hungarian banking system;
• existence of a wide network of agreements on avoidance of double taxation (79);
• applies to resident companies legal regulation EU (EU directives).

Hungarian company law

2 main laws are devoted to the establishment and operation of Bulgarian companies: Law V of 2006 “On Public Corporate Information and Procedures for the Registration and Liquidation of Companies” and Law IV of 2006 “On Companies”.

A Hungarian company can be established in the form of an LLC (Kft.), JSC (Rt.), as well as in the form of a partnership (Bt.). The most common and the best option is the establishment of a limited liability company - Kft - Korlátolt felelősségű társaság (equivalent to Ltd). Minimum size authorized capital is approx. EUR 10,000 (3,000,000 forints). The paid up authorized capital is deposited into a special bank account. Upon completion of the registration procedure, the specified account can be re-registered into a current one, and the authorized capital can be used by the company in order to carry out economic activity. The Hungarian Limited Liability Company does not issue shares. The owner's share is determined by the memorandum of association.

Requirements for directors: at least 1 person; corporate directors are prohibited. The minimum number of shareholders is 1. Residency requirements for directors and shareholders are not established by law. Information about shareholders, directors, authorized capital and annual financial statements. This information is subject to publication in the State Register.
Among other things, the company is required to submit an annual report and financial statements. Reporting is done as tax office, and in the Register of Companies (in electronic form).

As for the audit, it is mandatory in 2 cases:

1. the company's annual turnover exceeds HUF 300 million (approx. EUR 970,000) for two consecutive years;
2. the number of employees of the company in the current financial year is 50 or more.

The procedure for incorporating a company includes the signing by the founders of the memorandum of association and the submission of duly executed documents to the Registration Chamber - Budapesti Cegbirosag. Documents are submitted electronically.
Opening an account in a Hungarian bank is mandatory. In this case, the account must be opened by the director of the company personally within 15 days from the date of registration.

Taxation of Hungarian companies

Fixed income tax rate of 9%, is the lowest rate in the entire EU. Based on the expected profit forecast prepared by the director when the company was established, an advance payment of income tax is made quarterly. In addition to corporate tax, Hungarian companies pay municipal income tax. The rate of such tax is from 0 to 2%, depending on where the company is registered and actually located.
Besides, Hungary currently has 79 double tax treaties with other countries.

Taxation of other income:

• tax on dividends - 0%, regardless of whether they are paid abroad or received from outside;
• capital gains tax – 9%;
• tax on interest on deposits - 9%;
• VAT (VAT).

All Hungarian companies are subject to mandatory VAT registration.

Procedure for registering a Hungarian company

Company name requirements:
The name must include an indication of the legal form - Kft. Names similar to names already registered in the Register of Companies cannot be used.

Company structure requirements:

• min number of directors - 1, physical. a person of any residency;
• min number of shareholders - 1, physical. or legal persons of any residency;
• min size of the authorized capital – approx. EUR 10,000;
• having a local registered address;
• a secretary is not required;
• annual meetings may be held outside of Hungary;
• obligation to submit an annual report and financial statements.

To register a new company, you must:

• provide company name options;
• provide a copy of the foreign and civil passport of the beneficiary with a registration mark;
• provide information about directors and shareholders in the absence of nominee service;
• indicate special requirements for corporate documents and the company seal, if any.

On average, the procedure for registering a company takes about 3-4 weeks (including checking the name for the availability of registration and sending documents). The package of documents of a registered company includes the binding of notarized copies of the main constituent documents company under an apostille, power of attorney and necessary resolutions (in case of nominee service), share certificate, company seal.
You can find out about the cost of company registration services in Hungary and annual fees on our website in the section or from our company's specialists. We are ready to provide all the necessary clarifications regarding the registration and maintenance of Hungarian companies.



Hungary is rightfully considered the heart of of Eastern Europe. A state with a reliable banking system, a well-developed infrastructure and understandable to everyone, clearly defined corporate legislation. Business in Hungary attracts many foreign businessmen. The decision to open a company in Hungary will be reasonable and optimal. The advantages of registering a company in Hungary will be the opportunity to obtain a residence permit for employees. The Hungarian government is pursuing a policy of supporting medium and small businesses, not only local but also foreign.

Owning a business in Hungary is prestigious and profitable due to its convenient geographical location. In addition, doing business in Hungary is relatively different. low cost lease or purchase of office and warehouse space.

Experts call a win-win option a hotel or a guest house, which can be profitably leased to tenants. Generally, hotel business in Hungary - a very profitable enterprise. This is not surprising, since a holiday in Hungary involves visiting incredibly picturesque places - Budapest, Balaton and Tokaj. We advise you to pay attention to the purchase of Hungarian real estate, which continues to grow in price.

Budapest is the largest Hungarian city, the capital, rich in thermal and healing springs. Companies in Hungary associated with the opening of hotels for tourists, restaurants and cafes in Budapest are in great demand.

In addition, an enterprise for the production of frozen semi-finished products will be distinguished by a quick payback. However, in this case, you will need to negotiate with local supermarkets, which will become the main buyers of your products.

Benefits of registering a company in Hungary

• Hungary is a member of the European Union. It is not on any gray or black list of international organizations.
• Hungary is great for obtaining a residence permit in Europe, starting a European business.
• Hungarian law belongs to the Romano-Germanic legal family, it is clear and understandable, well-written.
• The ability to easily and quickly obtain a taxpayer certificate at the place of registration. This is necessary to confirm the tax benefits operating under the Agreement in order to avoid double taxation.
• Ability to quickly obtain VAT numbers (VAT). This is true for companies in Hungary that will operate throughout the EU.
• Hungary is a low tax jurisdiction.
• A company in Hungary will give the business more respectability, since the reputation of this country should be recognized as impeccable.

Requirements for registered companies

Company types

1. Korlatolt Felelossegu Tarsasag (KFT) is a closed company with limited liability. The founder is responsible for obligations within a specific framework, the management is simple and understandable.
2. betiti tarsasag (BT) is a limited liability partnership;
3. Kozkereseti tarsasag (KKT)- is a partnership with unlimited liability;
4. Reszveny tarsasag (RT) is a public company. Such joint-stock companies are private (ZRT) and public (NRT) type.

Company name

There are no restrictions on the name, most importantly, it must be unique. Any kind of activity is permitted by law, except for the capitalization of companies - residents of Hungary, operating on its territory. Banks, financial and financial companies operate exclusively in the status of a joint-stock company.

Authorized capital (Share capital)

There are requirements for the size of the authorized capital only for KFT and RT - 20 million Hungarian forints or 71 thousand euros. At the time of registration of a company in Hungary, 50% of the authorized capital for KFT and 25% for RT must be paid.

Remember that if a company in Hungary has one founder, then the authorized capital is paid in full immediately, upon opening. There are no requirements for the amount of authorized capital for registering enterprises using KKT and BT.

Office (Registered office)

You need a local legal address, which is indicated at the time of registration of the company in Hungary.

Founders and Secretary(Shareholder)

The director of the company can be one or more, both individuals and legal entities. There are no residency requirements. The directors have full powers to manage the business and financial activities company, except for the exclusive rights of shareholders of the enterprise. Any individual or legal entity can be a shareholder of a Hungarian onshore company, resident status is not required.

The issuance of shares is prohibited by law. Shareholders' share of the profit must be spelled out initially in the Memorandum of Association of the enterprise. There is no trust management institution. The company secretary is optional.

Currency control

There is no currency control.

tax regime

Hungary has two VAT rates: 25% (regular, standard rate) and 5% (this is a reduced rate for non-residents). There is also a preferential regime for R&D (decoding - Research and Development). Interest and dividends are not taxed, they can be freely withdrawn outside the jurisdiction.

Payments to the research fund are obligatory. The rate is 0.3%.

Hungarian companies are exempt from corporate income tax:

• In the form of dividends from foreign companies;
• income that was received from the sale of a duly registered equity participation;
• 50% of income received from the use of intellectual property (royalties). This rule works provided that the tax deduction does not exceed 50% of the total profit;
• proceeds from the sale of registered intellectual property;

Confidentiality

Third parties may receive the following data about your Hungarian company:

• title;
• share income of shareholders;
• company registration address, that is, the address of the office indicated at the time of registration;
• information about shareholders;
• directorate information.

Reporting

All companies in Hungary must submit an annual report and undergo an audit by an auditor. The VAT report is submitted quarterly or monthly, depending on the amount of taxes paid.

International agreements for the avoidance of double taxation

Hungary has signed over 70 such agreements, including with Russia.

Bank account

The account must be opened in a Hungarian bank. Nominee Director together with the beneficiary or a person designated by the beneficiary, will manage the accounts of the enterprise. Management can also be carried out alone.

The Baldr company will help you buy a business in Hungary or open a company from scratch, quickly, competently, strictly within the law, with tax planning and cost minimization, at a fair price.

List of documents for registering a company in Hungary

To register a company in Hungary, you need to provide:

1. Company name. We advise you to choose at least three names, from which the optimal one will be selected and registered.
2. Items of activity. You indicate the main type of activity, and we will draw up full list, which we will indicate in the Constituent Documents.
3. Information about the founders of the company. You will need copies of the passports of the founders and all directors of the enterprise. If the founders are legal entities, then their statutory documents are needed. All - translated and certified by a notary.

If you provide us with all the specified documents, then the personal presence of the founders will not be required to register a Hungarian company.

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The cost of registering a company in Hungary

This service costs 1,700 euros. It includes:

• Full package of statutory registration documents of the enterprise;
• Seal;
• Price legal address company for the first year.
• Free consultations on absolutely all issues;
• Delivery of a package of documents and a printed seal to any country in the world.

The Baldr company is ready to register a company in Hungary within 30 days from the date of payment for the service. As a result, you will get an enterprise that is ready to start an active business, all that remains is to open an account with a banking institution and connect to Internet banking.

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Additional services when registering a company in Hungary

1. Assistance in choosing the form of a legal entity in order to organize a business in Hungary.

2. Registration in the state register of Hungary.

3. Consultations on taxation.

4. Company renewal every year.

5. Nominee service.

6. Consultations of a professional lawyer.

7. Drawing up the Charter of the company.

8. Assistance in obtaining and providing legal addresses.

9. Translation of enterprise documents into any European language.

10. Opening bank accounts and managing them.

11. Various administrative formalities.

12. Secretary services.

13. Providing a postal address.

14. Comprehensive accounting.

15. Assistance in registering a VAT payer.

16. Preparation of all documents for obtaining a residence permit in Hungary for foreign owners.

17. Professional, clear and understandable advice on tax and legal issues both before and after company registration:

• Development of business plans.
• Assistance in preparing documents for obtaining a loan.
• Drafting of contract documentation.
• Drafting of pre-trial documentation.
• Changes in the statutory documents.
• Reorganization, merger, division of enterprises.
• Closing and liquidation of a Hungarian company.

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Comparison table of the main forms of OPF in Hungary

Foreign individuals and legal entities can establish companies in Hungary and acquire shares in existing companies without restrictions. Practice has shown that limited liability companies (KFT) or joint-stock private companies with limited shares (ZRT) are the most popular.

These forms of doing business are most consistent with the forms used in the EU. We present to you comparison table company forms that are most commonly used in Hungary.

Criterion	Limited liability companies (KFT)	Private Equity Companies (ZRT)
Declared authorized capital	Minimum - 3 million HUF	Minimum - 5 million HUF
Paid up share capital	The company may not pay the UK at the time of registration.	A minimum deposit of 25% is required at the time of registration.
Requirements for directors	It can be both physical and entity, not necessarily a resident of Hungary. At least one.	Mandatory natural person, but not necessarily a resident of Hungary. At least one.
Requirements for the Supervisory Board / Board of Directors	Mandatory appointment if the number of full-time employees is over 200. At least three members.	Mandatory appointment. At least three members.
Requirements for shareholders (participants)	At least one individual or legal entity may be a non-resident of Hungary.	At least one individual or legal entity may be a non-resident.
requirements for a secretary
Office and address requirements		When registering, the company presents a local legal address.
Rated service
The need to have a bank account in a Hungarian financial institution
Audit requirements	Can be avoided if the criteria for average revenue and the number of employees are met.	Can be avoided if the criteria for the number of employees and the volume of average revenue are met.
Availability of information about directors and shareholders	Information about shareholders and directors is public information.	Only the data of the director are public information. Shareholder data is not such and is issued only at the special request of state authorities.
Availability of information about the beneficiary (ultimate owner) - non-resident of the EU	The data is not publicly available. Information about the beneficiary is not disclosed, this is a general rule. Disclosure of such information is possible during the opening of a bank account and to a local provider upon request under KYC.	The data is not publicly available. Information about the beneficiary, according to general rule, is not disclosed. Disclosure of such data is possible when opening an account with a bank and a local provider upon request under KYC.

Offshore Hungarian. Hungary is a luxurious European jurisdiction, located in Central Europe, all rivers belong to the Danube basin. The state borders on many countries, such as Austria, Slovakia, Slovenia, Ukraine, Serbia.

Registration of a company in an offshore zone in Hungary

Hungary has never been an offshore country, it can rightfully be classified as a European onshore, i.e. companies registered in Hungary are subject to taxation. But there are a number of advantages of registering companies in Hungary, which makes this jurisdiction very popular for entrepreneurs, and which allows the country to successfully compete with well-known centers of international tax planning, such as Cyprus and Malta. One of the benefits of registration is tax benefits. This is due to the existing and favorable tax regime that allows you to benefit from registering a company in Hungary.

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Taxation of Hungarian offshore companies

Hungarian legislation is transparent. Legislation is on the way closer to the Western model. The activity of firms in Hungary has been regulated since 1988. As mentioned above, the main advantage of registering a company in Hungary is its favorable tax regime. This jurisdiction, thanks to this, is becoming quite popular among foreign investors. In 1994, laws were passed in the country that allow companies to be registered in the jurisdiction with a low level of taxation, and since 2010, a two-tier tax system has been introduced in Hungary. Under these laws, a company pays a 10% tax on profits up to $2.3 million, and anything above that is taxed at a 19% tax rate. The tax on dividends for Hungarian companies is 3% of the profits received. Passive income is taxed at the following rates: royalties - 5%, interest - up to 10%.

Offshore Hungarian and their advantages

In addition to favorable taxation, there are several more advantages, which include:

• favorable geographical position in the central part of Europe;
• membership in the European Union;
• A country with a stable economic and political climate;
• the jurisdiction has a developed infrastructure;
• simple corporate law;
• local banking system very developed;
• availability of duty-free customs warehouses;
• Hungary issues a status document; taxpayer at the place of registration;
• there are no residency requirements for shareholders and partners of the company;
• the jurisdiction provides a residence permit for employees of a registered company;
• no visa regime;
• lack of currency control;
• there is no need to legalize documents through an apostille;
• Hungary has signed agreements on avoidance of double taxation with more than 70 countries, including Russia.

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Hungarian offshores - ease of registration of offshore companies in Hungary

Opening a company in Hungary is now very easy, as the registration process is fully computerized and can be completed within an hour. In the same way, VAT () is automatically issued upon incorporation of a company, which is considered the fastest in Europe.

various types of offshore companies in Hungary

• Limited Partnership
• Partnership with unlimited liability (Partnership unlimited liability)
• Limited Liability Company (Kft)
• Private company limited liability

The most common among entrepreneurs is the registration of a limited liability company (Kft). For more convenient and faster registration, you can use the services of a nominee service.

Banking system in Hungary

The Hungarian banking system is quite democratic, so opening a bank account in Hungary does not present any difficulties. There is no need to provide the bank with a certificate of solvency and provide a deposit. Under the laws of the jurisdiction prerequisite registering a company in Hungary is . According to the legislation of the country, it is allowed to open an account abroad.

Offshore registration procedure in Hungary

In the jurisdiction, information about the beneficiaries of the company is not public, but to achieve complete anonymity.

When opening Hungarian offshore companies, several conditions must be met. First of all, you will have to pay the authorized capital in full if the company is founded by one person. If there are several founders, then it is enough to pay half of the authorized capital. Under Hungarian law, a company's board of directors requires a majority of local directors. But this issue is simply resolved - by the director, who issues a power of attorney to the real beneficiary to manage the company.

Offshore Hungarian. Hungary is a rapidly developing country and therefore the registration of an offshore company in this territory provides everything the necessary conditions for foreign investors and multinational companies for a successful and profitable business.

If you want to register Hungarian offshore we will be happy to offer our services that will be for you best solution! We promise to deliver high quality services quickly, professionally and at an affordable price! Just fill out the contact form or give us a call.