The most common forms of businesses in Hungary are:

Limited Liability Company (Kft): Ideal for small to medium enterprises, with a minimum share capital requirement of 3 million HUF.

Private Company Limited by Shares (Zrt): Suitable for larger businesses.

Branch Office or Representative Office: For foreign companies looking to establish a local presence.

The process typically involves:

1. Choosing a business structure and name.

2. Preparing and notarising the company’s founding documents.

3. Registering the company with the Hungarian Court of Registration.

4. Obtaining a tax number and VAT registration.

5. Opening a corporate bank account.

6. Registering for social security and other mandatory authorities.

Depending on the business’s complexity and the documents’ preparedness, registration can take 5-15 business days after submission to the authorities.

Share Capital: Minimum 3 million HUF.

Founders: At least one founder (can be a foreign individual or entity).

Registered Office: A physical address in Hungary.

Director: At least one director, who may be a non-resident.

Physical presence is not always required. Many steps can be completed remotely through authorised representatives. However, depending on the bank’s policies, opening a bank account might necessitate your presence.

Hungary allows 100% foreign ownership of companies, offering a welcoming environment for international investors.

Hungary boasts one of Europe’s lowest corporate tax rates, at 9%. Additionally, favourable VAT structures and access to double taxation treaties make it an attractive business choice.

Hungarian law requires companies to maintain precise financial records, which a certified accountant must prepare. A local tax advisor can also help navigate the complexities of Hungarian and EU regulations.

Yes, forming a company can be a pathway to obtaining residency. Entrepreneurs and business owners may qualify for residency permits, provided they actively manage their businesses and meet specific criteria.

Filing annual tax returns.

Maintaining accurate financial records.

Complying with VAT reporting requirements.

Ensuring compliance with labour and employment laws (if hiring employees).

Partnering with reliable consultants or legal experts can help you comply with local laws, including tax, labour, and corporate obligations. Regular updates on regulations are essential.

Costs may include:

Legal and administrative fees for registration.

Notary and translation costs.

Corporate bank account fees.

Registered office services (if needed).

While buying an existing company can be risky, it offers several advantages worth considering while starting a new business. One such benefit is that a company with years of operation can more easily secure larger loans from banks compared to a newly established entity. Another advantage is the potential for growth in an existing company. This can make potential business investors feel optimistic about the future of their acquisition. Specific grants or tenders may require the company to have been in operation for several years or to have references from other businesses—something that could take years for a new company to acquire.