Registration company in Hungary
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.
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
There are many reasons why entrepreneurs choose to register their businesses through professional services like VoltLegal:
Hungary offers a flat corporate tax rate of 9%, the lowest in the EU, making it one of the most cost-effective jurisdictions for business incorporation
Hungary’s central position in Europe provides easy access to EU markets and beyond. It serves as a logistics hub, connecting Western and Eastern Europe
The company registration process can be completed within 3–7 working days and entirely remotely if notarized documents are provided
All Hungarian companies are automatically registered for VAT, providing instant access to intra-EU trade benefits
Hungary offers a competitive labor market with highly skilled professionals, particularly in technology, finance, and logistics sectors
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
Hungary’s tax system is one of the most competitive in Europe, featuring a combination of low rates and strategic incentives
- 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).
- Standard Rate: 27% (highest in the EU)
- Reduced Rates: 5–18% for specific goods and services
- Reporting: Monthly VAT reporting is mandatory.
- Rate: 15% (flat rate)
- Capital Gains: Taxed at 15%, with a possible additional 15.5% social tax.
- Dividends, Interest, Royalties: No WHT for non-residents under domestic legislation.
Global Jurisdictions We Serve
At VoltLegal, we offer company formation services in a variety of global jurisdictions, each offering unique benefits for businesses. Some of the most popular jurisdictions for company registration include: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.
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 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.
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.
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!