Hungary

Company formation in Hungary

Hungary is located in the center of Europe, with great access to the rest of the continent via air or road. Within just a couple of hours’ drive, you can reach cities like Vienna, Prague or Belgrade, the beaches and ports of the Adriatic, or the mountains of the Alps. Its population is slightly less than 10 million, with about 2 million living in the capital city of Budapest. Hungary is proud of its 1,000 years of history, its cultural contributions to the world both in the field of art and science, and its unique language. Hungary is a Republic, and a member of the European Union since 2004. It is also a member of the Schengen visa zone, which means that Hungarian citizens and residents can travel without a visa to all other Schengen member states.

Starting a business in Hungary

In Hungary, a Limited Liability Company is referred to as a KFT (short for “korlátolt felelősségű társaság”, which means the same). The KFT is the most popular form of business in Hungary, because it is quick and easy to set up. Registration is possible via a power of attorney and takes only 4-5 business days, so you have to travel to Hungary only once, to open a corporate bank account in person, after which you can start trading right away. You will also get an EU VAT number right from the start, without extra costs or waiting. Your company will also need a registered accountant who will not only help you keep tabs on incoming and outgoing payments, but also take care of compulsory reporting toward the Tax Authority.

Hungarian taxes

Hungary offers the best deal in corporate tax for every company size, which is at 9% the lowest in the region. Standard VAT is pretty high, but it can be deducted from your expenses, while a whole range of products have a much lower VAT.

Corporate tax: 9%

Dividend tax: 15%

Standard VAT: 27%

Our services

Company registration

Can be done in person in Hungary or through a power of attorney (POA) from abroad. A lawyer prepares all the documents for you to sign, complemented by the right authorizations for our team that will allow for a quick and smooth procedure. This includes not only the company registration itself, but also

EU VAT number registration,
Chamber of Commerce registration,
Personal tax number registration for the MD, and
Registration for electronic administration

Bank introduction for the corporate bank account

Your Hungarian company will need a corporate bank account in Hungary. We help you review the available banks and plans, prepare for filling in the KYC forms of the banks, and plan your trip to Hungary.

Virtual office with mail forwarding

Your company needs an official address where authorities expect to be able to contact you. At this registered seat, competent personnel should be available in regular working hours to process incoming urgent mail from the authorities. However, you do not have to maintain an office on your own: with our virtual office service, you get access to a registered seat complete with back-office services for the fraction of the price you would pay for an office and a secretary.

Accountancy

Accounting for your Hungarian company should be performed by a licensed accountant. You need accountancy from Day 1, even if you have very little or even zero activity in the first few months while you are just starting your business. For small and medium-sized enterprises it makes sense to work with a provider rather than hiring an accountant, and our accounting team is specialized in working with foreign-owned SMEs.