Hungary - Company Incorporation

Hungary Company Incorporations

Hungary is a member of the European Union, and is a member of the Economic and Monetary Union of the European Union.

Registration of a Corporation in Hungary

On submitting an application to incorporate, the following details should be provided:

  • A commercial license
  • Documents of incorporation
  • Business name of the company and the address of its registered offices or of its owners.
  • Location of the company's activities
  • Type of activities - In Hungary, when incorporating a company, it automatically becomes a member of the local Chamber of Commerce

Apart from submitting the above documents for registration, the company must register with the following bodies:

  • The Central Office of Statistics (KSH)
  • National Income Tax (APEH)
  • Regional Income Tax
  • The (Regional) Court of Registration
  • The Institute of National Insurance

A Joint Stock Company (RT)

A company of this sort may be a private company or a public company that is traded on the Stock Exchange. A joint stock company may have a single shareholder, but its board of directors must have at least 3 members but no more than 11. The shareholders in a private joint stock company may appoint a CEO instead of a board of directors.

There is a legal requirement for a minimum share capital of HUF 20 million of which HUF 10 million or 30% of the capital (whichever is the higher) shall be paid in cash.

According to the Companies Law, banks, insurance companies and investment corporations must incorporate as joint stock companies.

A Limited Company (KFT)

As distinct from an RT company, a company of the KFT category may not raise capital from the public. The shareholders have limited liability. The minimum equity must be in excess of HUF 3 million, of which at least HUF 1 million or at least 30% of the total capital (whichever is the higher) must be paid in cash. Similarly, each shareholder must have a minimum share capital of HUF 100,000.

A KFT company with a single shareholder or a company with a registered share capital in excess of HUF 50 million is obliged to submit audited accounts.

A company can be considered a small company if it has less than 10 employees and the annual net income does not exceed €2,621,000 or the balance sheet total is under €1,873,000.

Starting a Business in Hungary

We represent the company and create company deeds and prepares other legal documents.
Notarise specimen signatures and documents
Pay at least 50% of subscription amount (at least Ft 1,000,000) into the bank account.
Apply for registration at the Registration Court
Register for social security
File an announcement with the central and local tax authorities, statistical office and Social Security authorities