Establishing a Company in Hungary

Hungary is a European Union (EU) member located in Central Europe, offering a strategic location and investor-friendly laws. Its low corporate tax rates and efficient administrative system make it a preferred destination for foreign entrepreneurs seeking to do business in Europe.

Key advantages of starting a company in Hungary:

• Full access to the European Union market

• One of the lowest corporate tax rates in Europe at just 9%

• Low operating and accounting costs

• Simplified invoicing and EU VAT registration

• Geographic and cultural proximity for Turkish entrepreneurs

• Affordable office space and staffing options

Available Company Types

For foreign entrepreneurs, the most common and suitable company type in Hungary is the Kft (Korlátolt Felelősségű Társaság) – a Private Limited Liability Company.

Kft (Limited Liability Company)

• Minimum share capital: 3 million HUF (approx. 8,000 EUR)

• Can be founded by a single person

• Shareholders are not personally liable for company debts

• No residency requirement for company owners

• EU VAT number allows invoicing to all EU countries

Other options include:

Bt (General Partnership)

• Requires at least two partners

• At least one partner has unlimited liability

• Suitable for small-scale businesses

Rt (Joint-Stock Company)

• Suitable for large-scale operations and public offerings

• Ideal for businesses seeking shareholder structures or capital investment

Company Formation Process in Hungary

Hungary offers a fast and transparent company formation process. In most cases, companies can be established within a few days. Marca World assists you throughout the entire process.

1. Choose the Company Type

Depending on your business needs, you can select the appropriate type (usually Kft). Determine the share capital and internal structure.

2. Select a Company Name

Choose a unique and legally acceptable company name in Hungarian or international format. Availability is checked through the company registry.

3. Prepare Incorporation Documents

Documents such as the Articles of Association, shareholder and director details, and notarized forms are prepared. All official documents must be in Hungarian.

4. Provide a Registered Address and Appoint an Accountant

A registered local address in Hungary is required. Additionally, every Hungarian company must appoint a licensed accountant. Marca World offers both services.

5. Register with the Court of Registration

Once documents are complete, the company is submitted to the Hungarian Court of Registration. The process typically takes between 2 to 5 business days.

6. Obtain Tax ID and EU VAT Number

The company is registered with the Hungarian Tax Authority, and an EU VAT number is issued. This allows the company to issue invoices across the European Union.

7. Open a Business Bank Account

A corporate bank account is opened in Hungary to manage finances. Required documentation is submitted to the chosen bank.

Post-Formation Responsibilities

• All Hungarian companies must work with a licensed accountant

• Monthly VAT filings and annual tax declarations are required

• EU-wide sales may be subject to VAT depending on operations

• Employing staff requires social security registration

• Budgeting for annual maintenance costs is essential

Why Choose Marca World for Your Hungary Company Setup?

Setting up a company in a foreign country can be complex due to language barriers, regulations, and bureaucracy. Marca World provides an end-to-end solution for entrepreneurs looking to establish their presence in Hungary.

Marca World services include:

• Consulting on company type and legal structure

• Drafting incorporation documents in Hungarian

• Providing a registered office address

• Matching with licensed local accountants

• Tax registration and EU VAT application

• Bank account setup support

• Turkish-language support throughout the process

Frequently Asked Questions

Do I need to live in Hungary to open a company?
No. You can fully manage the company remotely. Residency is not required for ownership.

Can I sell to other EU countries with a Hungarian company?
Yes. An EU VAT number allows you to trade freely and invoice customers across the EU.

How long does the setup take?
Typically, the full process is completed within 5 to 10 business days.

Is the share capital paid upfront?
Yes, but part of it may be declared as pledged capital and not deposited immediately.