The following overview provides a summary of the most important aspects of company formation in Hungary.
What types of companies can be established in Hungary?
The most commonly chosen company forms are:
- Limited Liability Company (Kft.)
- Limited Partnership (Bt.)
- Private Company Limited by Shares (Zrt.)
Which company type should you choose in Hungary?
For start-ups, the most common choice is the Kft. due to its limited liability and operational flexibility.
What is the minimum share capital for a Kft.?
The minimum share capital required for a Kft. is HUF 3,000,000.
How long does company formation in Hungary take?
The full company formation process typically takes:
- 3–4 weeks, provided all required documents are available.
- In the case of a foreign managing director, the process may take longer, especially due to client portal registration and electronic authorization requirements.
Is it mandatory to have a registered office?
Yes. Every company in Hungary must have a registered office when submitting the registration application.
The registered office can be:
- owned property
- a rented office
- a registered office service provider
Is a lawyer required for company formation in Hungary?
Yes. All company formation documents must be countersigned by a lawyer, and legal assistance is mandatory under Hungarian law.
What documents are required for company registration in Hungary?
The most important documents and information include:
- personal identification details
- proof of registered office
- details of company officers
- articles of association or deed of foundation
- planned business activities (TEÁOR codes)
Why is it important to define business activities in advance?
During company formation in Hungary, you must specify the main activity and all relevant TEÁOR codes.
Although modifications can be made later, they involve additional administrative steps, so it is advisable to prepare a comprehensive list in advance.
When should VAT registration be decided?
At the time of company formation, you must decide whether the company will:
- opt for VAT exemption, or
- be subject to general VAT rules
This decision determines invoicing, reporting obligations, and administrative requirements from the very first day of operation.
Is it necessary to have a Hungarian presence?
A registered office in Hungary is mandatory for company formation.
A branch or site is only required if justified by the nature of the business activity.
The representative (e.g., managing director) does not have to be a Hungarian citizen. They may also be a person with a foreign address, as there are no nationality restrictions. However, if the owner or managing director has a foreign address, it is mandatory to appoint a delivery agent (service agent) in Hungary.
How are tax numbers and company identifiers issued for the hungarian company?
In Hungary, the tax number, statistical number, and company registration number are issued automatically as part of the company registration procedure.
Official communication with authorities takes place electronically via the company gateway after registration.
Is it necessary to open a bank account?
Yes. The hungarian company must open a corporate bank account.
Many financial institutions now offer online account opening options.
Who represents the hungarian company before the authorities?
The managing director is authorized to represent the company.
For electronic administration, the managing director must have access to the Hungarian client portal to:
- grant authorization to accountants or representatives
- manage the company gateway
What language is used in official communication?
Communication with Hungarian authorities is conducted in Hungarian. All filings and documents must be submitted in Hungarian.
Need assistance with company formation in Hungary?
MGI-BPO provides expert support throughout the entire process — from planning to company registration — and guides you through every necessary step.
