Send a request for a call
Company formation in Hungary
Comprehensive assistance in company formation, including banking services
How to form a company in Hungary
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Hungary and opening a bank account in Hungary
2
Payment of services
Payment of our services for company formation in Hungary and/or bank account assistance in Hungary
3
Company formation
We register a new company in Hungary for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to incorporating a company in Hungary
Dividend and interest withholding tax rate is 0% when paid to companies, royalties withholding tax is 0%.
1. Founders that would like to register a company in Hungary can either be resident or non-resident in Hungary. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a company director in Hungary. It is not required to register a company in Hungary with a resident individual as one of its shareholders or directors.
3. One individual can register a company in Hungary and simultaneously be a shareholder and a director in this company if such company is registered as a Kft (a limited liability company).
4. There is no requirement for creating substance in Hungary - no need to hire local employees or rent an office in order to establish a company in Hungary or to conduct business in Hungary.
5. Minimum share capital that is required to register a company in Hungary as a Kft (a limited liability company) is HUF 3 million.
6. Information about company founders, shareholders and directors after company registration in Hungary is complete is publicly available in the state corporate register.
7. We can help you register a company in Hungary remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Budapest for 1 day in order to open a corporate bank account.
2. A resident or a non-resident individual can be a company director in Hungary. It is not required to register a company in Hungary with a resident individual as one of its shareholders or directors.
3. One individual can register a company in Hungary and simultaneously be a shareholder and a director in this company if such company is registered as a Kft (a limited liability company).
4. There is no requirement for creating substance in Hungary - no need to hire local employees or rent an office in order to establish a company in Hungary or to conduct business in Hungary.
5. Minimum share capital that is required to register a company in Hungary as a Kft (a limited liability company) is HUF 3 million.
6. Information about company founders, shareholders and directors after company registration in Hungary is complete is publicly available in the state corporate register.
7. We can help you register a company in Hungary remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Budapest for 1 day in order to open a corporate bank account.
Cost of services
Formation of a Kft
Timeframe - 8 business days
Timeframe - 8 business days
Send a request
for company formation
Send a request
for accounting services
Send a request
for business-partner search
Advantages of forming a company in Hungary
Attractive business-environment
- Hungary is located in Central Europe, close to major European markets
- Perfect location for industrial manufacturing, service sector and logistics centers
- Highly-developed infrastructure
- Favorable investment policy
- Low inflation rate
Stability and security
- Political and financial stability
- Hungary is a Member State of the European Union and the Council of Europe, it also is a member of OECD and WTO
- Comprehensive protection of property rights
- Investment protection
Tax benefits
- One of the lowest corporate tax and personal tax rates in the EU - 9%
- Dividend and interest withholding tax rate is 0% when paid to companies, royalties withholding tax is 0%
- Multiple double tax treaties
No foreign exchange controls
- Hungary state regulations do not impose foreign exchange controls. Individuals and business-entities either resident or non-resident in Hungary may open bank accounts in Hungarian banks without any restrictions
Ease of establishing and doing business
- 100% foreign ownership of a company is available
- Remote company formation in Hungary is available
- Low cost of highly qualified labor
More about Hungary
Hungary is located in Central Europe and borders Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia and Austria. Total territory of Hungary amounts to 93,036 square kilometers.
Total population of Hungary around 10 million people. The majority of population lives in urban areas.
Total population of Hungary around 10 million people. The majority of population lives in urban areas.
Official currency of Hungary is hungarian forint (HUF).
Hungarian GDP in 2018 grew by around 3%.
Hungary's economy structure is primarily similar to the economy structure of other states that have the same level of economic development. Service sector is slightly over 2/3 of Hungary's GDP. Within the service sector private sector (trading, travel business, financial and other economic services) is highly developed. Service sector make up a significant part of the state's export. Transport and expedition services offer optimal conditions for transit due to beneficial geographic location of Hungary.
Agriculure for which there are favorable climate conditions makes up only 4% of the state's GDP. Industrial manufacuring, however, is only 1/4 of the state's GDP.
Foreign direct investments exceeded EUR 69 billion. The majority of these investments were for the service sector and car industry, also for electric equipment manufacturing.
Hungarian GDP in 2018 grew by around 3%.
Hungary's economy structure is primarily similar to the economy structure of other states that have the same level of economic development. Service sector is slightly over 2/3 of Hungary's GDP. Within the service sector private sector (trading, travel business, financial and other economic services) is highly developed. Service sector make up a significant part of the state's export. Transport and expedition services offer optimal conditions for transit due to beneficial geographic location of Hungary.
Agriculure for which there are favorable climate conditions makes up only 4% of the state's GDP. Industrial manufacuring, however, is only 1/4 of the state's GDP.
Foreign direct investments exceeded EUR 69 billion. The majority of these investments were for the service sector and car industry, also for electric equipment manufacturing.
International business establishes business-entities in Hungary primarily for trading and expedition services due to the geographic location of Hungary.
Popular fields for international business are:
Foreign investors also consider Hungary as a jurisdiction for doing business in IT, innovation and technology due to favorable state policy.
Restricted for foreign entrepreneurs are the following sectors:
Popular fields for international business are:
- pharmaceutical products
- food industry, food stores
- textile industry
- car industry
- construction
- education.
Foreign investors also consider Hungary as a jurisdiction for doing business in IT, innovation and technology due to favorable state policy.
Restricted for foreign entrepreneurs are the following sectors:
- operating activity of airports and seaports
- telecommunication services
- production, shipment and storage of oil products
- production, maintenance and modernization of military equipment and weapons
- production, sale and transfer of natural gas and electricity
- postal services.
- Corporate income tax - 9%. Tax returns are filed on an annual basis. Advance income tax payments are made on a quarterly or an annual basis
- Dividend withholding tax - 0% when paid to companies, 15% when paid to individuals
- Interest withholding tax - 0% when paid to companies, 15% when paid to individuals
- Royalties withholding tax - 0%
- Capital gains tax - 9%
- VAT - Standard tax rate 27% or reduced tax rates from 0% up to 18% or tax exempt. Tax returns are filed on a monthly, a quarterly or an annual basis
- Personal income tax - 15%.
Key types of business-entities in Hungary are the following:
1. General partnership (Közkereseti Társaság - Kkt)
2. Limited partnership (Betéti Társaság - Bt)
3. Limited liability company (Korlátolt Felelősségű Társaság - Kft)
4. Private limited company (Zártkörűen Müködő Részvénytársaság - Zrt)
5. Public limited company (Nyilvánosan Működő Részvénytársaság - Nyrt)
6. European company (Societas Europaea)
Individuals and business-entities, either resident or non-resident in Hungary, may act as founders of business-entities in Hungary. Most popular types of business-entities in Hungary are Kft and Zrt
Foreign companies can establish substance in Hungary by setting up a branch, a joint venture, purchase of existing business or by using agent or local distribution services
To receive a detailed description of the company formation procedure in Hungary and information about documents necessary for company formation in Hungary please contact our experts.
1. General partnership (Közkereseti Társaság - Kkt)
2. Limited partnership (Betéti Társaság - Bt)
3. Limited liability company (Korlátolt Felelősségű Társaság - Kft)
4. Private limited company (Zártkörűen Müködő Részvénytársaság - Zrt)
5. Public limited company (Nyilvánosan Működő Részvénytársaság - Nyrt)
6. European company (Societas Europaea)
Individuals and business-entities, either resident or non-resident in Hungary, may act as founders of business-entities in Hungary. Most popular types of business-entities in Hungary are Kft and Zrt
Foreign companies can establish substance in Hungary by setting up a branch, a joint venture, purchase of existing business or by using agent or local distribution services
To receive a detailed description of the company formation procedure in Hungary and information about documents necessary for company formation in Hungary please contact our experts.
Send a request for company formation in Hungary
We will contact you within 1 minute
© Prime International Legal Services, 2023.
SERVICES
CONTACT US
Address:
128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
