Registration company in Hungary
Simplifying the Global Company Formation Process with Tailored Solutions for Every Jurisdiction
Strategic choice for International business
Hungary offers an excellent opportunity for businesses seeking to establish a presence in Europe. With the lowest corporate tax rate in the EU, a strategic location, and a streamlined registration process, Hungary is a preferred jurisdiction for entrepreneurs and international corporations. Whether you’re looking to access European markets or benefit from Hungary’s business-friendly environment, this country provides a solid foundation for success.
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Corporate Structures and Legal Entities in Hungary
Businesses in Hungary can choose from several legal structures to suit their operational needs:
Private Limited Liability Company (Kft)
- Minimum Share Capital: HUF 3,000,000 (~€8,300)
- Liability: Limited to the capital invested
- Ideal For: SMEs and startups
Public Limited Liability Company (Nyrt)
- Minimum Share Capital: HUF 20,000,000 (~€55,000)
- Liability: Limited to the capital invested
- Ideal For: Large-scale enterprises
General Partnership (Kkt)
- Liability: Unlimited for all partners
- Ideal For: Small businesses seeking operational flexibility
Limited Partnership (Bt)
- Liability: General partner has unlimited liability, while limited partners’ liability is restricted to their contributions.
- Ideal For: Small businesses with diverse partnership roles
Branch Office
- Liability: Parent company bears full liability
- Ideal For: Foreign companies looking to establish a local presence
5 Key Benefits of Registering a Company in Hungary
Overview of Hungary
Hungary is a Central European country with a rich cultural heritage and a strong economic foundation. As a member of the European Union, Hungary offers businesses seamless access to the EU’s single market, making it a strategic location for international trade.
- Official Name: Hungary
- Geographical Location: Central Europe
- Membership in International Organizations: European Union (EU), United Nations (UN), World Trade Organization (WTO)
- Currency: Hungarian Forint (HUF)
- Languages: Hungarian (official), English widely used in business
- Future Outlook: Hungary is increasingly attracting foreign investment in technology, logistics, and renewable energy. Its government is focused on improving infrastructure and providing incentives for international businesses.
Legal Framework
Hungary’s legal system is rooted in civil law, and its corporate regulations are designed to align with EU standards. The Hungarian Civil Code and Act on Business Associations govern corporate activities, ensuring a transparent and efficient legal framework for businesses.
- Ease of Doing Business: Ranked highly for its straightforward registration process and business-friendly policies.
- Key Authorities: The Hungarian Court of Registry and State Tax Authority oversee company registration and compliance.
Taxation in Hungary: An In-Depth Guide
Corporate Income Tax (CIT)
- Rate: 9% (flat rate)
- Municipal Tax: 0–2% depending on the location of the business
- Due Dates: Final payment and CIT return submission are due by the last day of the fifth month following the financial year (e.g., 31 May for calendar-year taxpayers).
Value-Added Tax (VAT)
- Standard Rate: 27% (highest in the EU)
- Reduced Rates: 5–18% for specific goods and services
- Reporting: Monthly VAT reporting is mandatory.
Personal Income Tax (PIT)
- Rate: 15% (flat rate)
- Capital Gains: Taxed at 15%, with a possible additional 15.5% social tax.
Withholding Tax (WHT)
Dividends, Interest, Royalties: No WHT for non-residents under domestic legislation.
Double Tax Treaties (DTTs)
Hungary has signed over 80 DTTs, providing relief from double taxation and reducing cross-border tax liabilities.
Global Jurisdictions We Serve
United Arab Emirates
The UAE, particularly Dubai, offers attractive incentives for businesses, including tax-free zones and 100% foreign ownership in certain areas. New company formation in the UAE provides access to a growing and dynamic market
Hong Kong
Hong Kong is a major financial hub with a low tax rate, making it an attractive destination for international businesses. Company registration in Hong Kong is straightforward, and the city provides easy access to other Asian markets
Singapore
As one of the most business-friendly countries in the world, Singapore is a prime location for businesses looking to expand into Asia. The city-state offers low taxes, minimal bureaucracy, and an efficient company registration process
Lithuania
Lithuania is quickly becoming a favored jurisdiction for businesses in the fintech and cryptocurrency industries. With relatively low corporate taxes and a pro-business regulatory environment, it’s an excellent option for entrepreneurs looking to establish a limited company in the European Union
Estonia
Estonia is renowned for its e-Residency program, which allows entrepreneurs to register a company online without needing to physically be in the country. This program offers one of the most streamlined processes for company incorporation, with minimal bureaucracy and a highly digital government infrastructure. It’s a popular choice for tech startups, cryptocurrency companies, and international businesses looking for easy access to the European Union market
United States
The U.S. offers a range of options for businesses, including forming a corporation or LLC in states like Delaware, which is known for its business-friendly laws and tax benefits. Registering in the U.S. gives your business access to one of the largest markets in the world
If you need assistance in a jurisdiction not listed here, please contact us, and we will provide a tailored solution for your business needs.
Licensing and Regulatory Requirements in Hungary
In Hungary, the regulatory framework for cryptocurrency and fintech has evolved to align with European Union standards, ensuring consumer protection and financial stability.
- Cryptocurrency Regulation
In 2024, Hungary enacted Act VII on the Market in Crypto-Assets, designating the Central Bank of Hungary (CBH) as the supervisory authority for crypto-asset service providers. This legislation introduces comprehensive licensing requirements and supervisory measures for entities operating in the crypto space
- Fintech Regulation
Fintech companies in Hungary are subject to licensing if they engage in regulated financial or investment activities. The CBH oversees the authorization and supervision of such entities, promoting innovation while ensuring compliance with financial regulations.
- Licensing Timeline
The duration to obtain a license varies by industry and the complexity of the services offered. For instance, acquiring an e-money issuer license can take approximately 6 to 18 months, involving multiple rounds of documentation and consultations with the regulator.
- Support for Innovators
To foster innovation, the CBH offers platforms like the Innovation Hub and Regulatory Sandbox. These initiatives provide guidance and a controlled environment for fintech firms to test new products and services under regulatory supervision.
Overall, Hungary’s regulatory approach balances the promotion of fintech innovation with the enforcement of robust consumer protection and financial stability measures.
FAQ: The company formation process in Hungary
Why register a company in Hungary?
Hungary offers a low 9% corporate tax rate, strategic EU access, and a streamlined registration process, making it ideal for businesses of all sizes.
Can I register a company remotely?
Yes, the entire process can be conducted remotely with notarized documents.
What is the corporate tax rate in Hungary?
The standard corporate tax rate is 9%, the lowest in the EU.
How long does it take to register a company?
Typically, it takes 3–7 working days for in-person registration and up to 10 days remotely.
Do Hungarian companies require VAT registration?
Yes, VAT registration is automatic upon incorporation.
What documents are required for registration?
You need copies of passports, a Power of Attorney for remote registration, and other corporate documents, depending on the entity type.
Is Hungary’s tax system favorable for businesses?
Yes, Hungary’s tax system, with a 9% corporate tax rate and no WHT on dividends, is highly favorable for businesses.
Registration Process: Step-by-Step Guide
- Initial Consultation: Discuss your business goals and entity type.
- Document Preparation: Compile all necessary documents, including the Memorandum and Articles of Association.
- Notarization: Certify documents either in person or remotely.
- Submission: File the application with the Hungarian Court of Registry.
- Completion: Receive the company’s registration and tax identification numbers.
Ongoing Compliance and Costs
- Annual Return Filing: Mandatory for all companies.
- Accounting and Audit: Required annually. Exemptions may apply for small businesses.
- Nominee Services: Available to ensure confidentiality.
Your Business in Hungary Awaits
Hungary combines a business-friendly environment, competitive tax rates, and strategic location to create an ideal jurisdiction for entrepreneurs and investors.
Contact us today for expert guidance and personalized assistance in registering your company in Hungary!
