Starting a company in Hungary as a foreigner implies choosing the most appropriate legal structure, preparing the incorporation documents in accordance with the selected entity and the actual registration with the Trade Register. With a vast experience in company formation in Hungary, our local specialists can guide you through the entire process.
| Quick Facts | |
|---|---|
| Company registration fees | EUR 950 (it includes the registration of a legal entity, preparing the registration documentation, obtaining a VAT number, appointing a representative) |
|
Our main company registration services |
– consultancy services on the process of company registration, – preparing the application file, – obtaining a registered address, – submitting the registration documents with the competent authorities, – obtaining a VAT number |
|
Types of entities |
– limited liability partnership – limited liability company – general partnership – private/public company limited by shares – branch / subsidiary |
| Capital requirements | For private and public companies, capital requirements are HUF 3 million, HUF 5 million and HUF 20 million. |
| Time frame for the incorporation |
2-3 days |
| Documents for company registration |
– the personal documentation (ID/passport) of shareholders and directors, – documents attesting the owners’ address and tax identification number in Hungary, – the incorporation documents (the articles of association) of the Hungarian company, – if company formation in Hungary is conducted through another legal entity, which is the main shareholder, the latter’s incorporation documents and certificates are required, – the power of attorney, if the owners are represented by a third party |
| Local director required |
No |
| Minimum number of shareholders |
1 (2 for partnerships) |
| Foreign-ownership allowed |
Yes, any percentage, from any country (excluding “risky-ranged” countries) |
| Institution in charge with the registration | Company formation in Hungary is completed through the Hungarian Court of Registry. |
| Obligation to be present for the incorporation formalities (yes/no) |
No |
| Duration of the corporate bank account setup |
The bank account can be set up in a matter of 1-2 days, but the entire procedure (paperwork and others) can take minimum 2 weeks. |
| Do you supply a registered address/virtual office? |
Yes |
| Fees charged for a registered address |
EUR 300 per year (registered address obtained through virtual office services) |
| How to incorporate from abroad | Foreigners can be represented in the process of company formation in Hungary by our consultants, if they grant us the power of attorney. |
How can you assist me in the process of company formation in Hungary?
Our consultants have prepared a set of dedicated services, which are created to ease the process of setting up a business in this country. Some of the ways in which we can assist you are:
- establishing an online meeting during which we will provide information on the company registration process and the requirements investors must meet in order to set up a company;
- provided that we have agreed upon the terms, our consultants can prepare the paperwork for the registration in a period of 2 days;
- we can inform you on the paperwork you need to submit to us so that we can initiate the process of company formation in Hungary on your behalf;
- our team can help you obtain a VAT number;
- you can also rely on us to put you in contact with a local accounting firm that offers reliable, tailored accounting services;
- our team can assist clients in obtaining a registered address in Hungary (which is mandatory when opening a company here) – we can help you rent a traditional office space or we can find you a suitable virtual office.
What are the costs for opening a company in Hungary?
The business start-up costs in Hungary vary depending on the type of company you intend to set up here and on the additional services you may choose for your new business. In order to clarify this issue, you should know that our standard legal fee is EUR 950 and it includes the following:
- formalities for registering a legal entity,
- preparing the registration documentation (bilingual paperwork – Hungarian/English),
- obtaining a VAT number,
- appointing a local representative (required when the investor or the company’s director do not have Hungarian residency, in which case our team can offer this service);
Important: An additional EUR 300 per year will apply for a local registered office.
What other costs should I expect to have when carrying a business activity in Hungary?
There are many different costs associated with a business operation. You can have operating costs – costs related to carrying out your business activity (employment, rent, utilities, etc.), and costs deriving from services you require for your company (such as accounting, employer of record – provided that you want to outsource employment, etc.).
What types of business entities can I set up in Hungary?
The following types of companies can be set up in accordance with the Company Law in Hungary:
- sole proprietorships which are intended for those acting as sole entrepreneurs who engage in various crafts;
- partnerships which are general and limited and which require at least two founding members;
- limited liability companies which can be private or public and which imply respecting different incorporation requirements;
- subsidiaries and branch offices which are structures available for foreign companies seeking to operate in Hungary.
The video below offers a short presentation on the process of company formation in Hungary:
What are the main steps for company registration in Hungary?
The creation of a business in Hungary implies the completion of various steps depending on the selected structure. Generally speaking, the main steps for starting a company in Hungary imply:
- selecting the legal structure and preparing the incorporation documents in accordance with it;
- setting up the corporate bank account in which the share capital will be deposited;
- finding a location that will seve as a legal address for the company to be incorporated;
- filing the statutory documents, information and application forms with the Trade Register;
- obtaining the tax identification number and registering for social insurance purposes;
- applying for the necessary licenses and permits with the authorities in the industry of interest (if applicable).
What are the documents required for incorporating in Hungary?
The documents to be prepared in order to open a company in Hungary depend on the type of structure chosen, as follows:
- when setting up a sole trader or partnership, the requirements are rather simple and they imply completing an application form, respectively signing a partnership agreement;
- the documents necessary for the incorporation of a private and public limited liability company in Hungary are the Memorandum and Articles of Association;
- when creating branches and subsidiaries in Hungary, the parent companies are required to file copies of their certificates of registration and Articles of Association.
How long does it take to open a company in Hungary?
The following timeframe must be considered when setting up a business in Hungary:
- the preparation of the registration documents takes 1-2 days to complete;
- the opening of the corporate bank account will take another day;
- the incorporation and issuance of the certificate of registration from the Trade Register can take up to 5 working days.
The infographic below presents some of the steps on how to open a company in Hungary:
Can a non-resident set up a company in Hungary?
Yes. Foreign investors interested in opening companies in Hungary benefit from the same treatment as in the case of local investors.
For tailored company formation solutions in Hungary, please contact us.