If you want to open a Hungarian branch, you can always rely on the legal services provided by our consultants, specialized in company formation in Hungary. With the help of our team, you can rest assured that you can safely set up a business here.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Hungarian law (Hungarian Accounting Act, Companies Act, Foreign Investment Act, etc.) |
Best Used For | implementing the same business model of the parent company / less accounting obligations / suitable for the financial industry (banking, insurance) |
Minimum share capital (YES/NO) | Not required |
| Time frame for the incorporation (approx.) | Obtaining governmental approval: one week / the overall setting up: 3-4 weeks |
| Management (Local/Foreign) | A local branch manager has to be appointed (no residency requirements) |
| Legal representative required (YES/NO) | Yes (the branch manager) |
| Local bank account (YES/NO) | Yes, it is required for all companies in Hungary, as a part of the incorporation process. |
| Independence from the parent company | Although the branch is registered separately from the parent company, it is a unit that is dependent on the parent company abroad. |
| Liability of the parent company | Fully liable for the debts of the branch |
| Corporate tax rate | 9% |
| Possibility of hiring local staff (YES/NO) | Yes |
| Documents required for the registration | – the articles of association of the parent company, – its registration certificate, – the decision to open a branch, – the standard application form, – information on the registered address in Hungary, – the list of directors, – information on the person appointed as the representative, specimen signatures. |
Institution in charge with the registration | The procedure to establish a branch in Hungary is completed through the Hungarian Court of Registration. |
Tax registration obligations | The branch is required to register for taxation with the National Tax and Customs Administration and to comply with the tax reporting procedures applicable by the law. |
| Tax reporting | The branch has to maintain its books of accounts and prepare financial statements in accordance with the accounting formalities available in Hungary. |
| Taxes charged to a Hungarian branch | A branch is liable to the payment of the corporate tax, value added tax, employment taxes and other taxes imposed to Hungarian legal entity (the main difference being that the taxes are calculated only to the income obtained from operations carried out here, not on the global income of the company). |
| Audit obligations (yes/no) | Yes |
| Audit exemptions | Investors can establish a branch in Hungary and not be required to completed audit formalities only when the headquarters of the parent company is registered in an EU member state. |
| When can a branch start its activity? | Only after the Hungarian Court of Registration issues all the documentation and certificates. |
| Fees for company registration for a branch | HUF 50,000 |
| Tax number required (yes/no) | Yes |
| Accounting legislation applicable to foreign branches | The Hungarian Act on Accounting |
| Termination of business operations of a branch | The parent company is required to address Hungarian authorities, by submitting a decision of termination of the Hungarian branch. The decision must be submitted within 60 days since the date when the decision was taken. The branch will be deleted from registers if the company doesnt have any outstanding debts to pay. |
| Institution in charge with the liquidation of a branch | The Hungarian Court of Registration |
| Notary proceedings (yes/no) | Yes |
| Ways in which our team can help in registering a branch | Our consultants can help you establish a branch in Hungary, can put you in contact with a local notary public and can provide legal representation throughout all stages of registration. Likewise, our team can offer professional post-incorporation services (tax consultancy, accounting, etc.) or if you want/need to close down the business. |
Table of Contents
What are the services your team can offer to foreign businessmen?
Our team of consultants in company formation in Hungaryhas a dedicated set of services designed for the assistance of foreign investors. When getting in touch with our team, investors will benefit from the following:
- we will start by initiating an online meeting with our clients, during which we will explain what the registration procedure entails for the type of business they want to set up (in this case, a branch office);
- then, we will require clients to provide us with the set of documents necessary for the registration;
- we will prepare the application file (it can take around 2 business days);
- then, we will submit the documentation with the responsible authorities, which will process the paperwork in around 1 week (in order to represent third parties, including foreign clients, you need to grant us the power of attorney);
- you will obtain information on the types of costs and fees associated with the process of company formation in Hungary (please know that the procedure implies governmental fees, as well as legal fees charged by our team, hired to represent you).
What are the fees charged for company registration in Hungary in 2026?
Our team charges EUR 950 for company registration services. Please contact us for a detailed presentation on the types of services included in this cost. We also recommend you address us for advice on any other associated fees and costs, which can vary greatly based on the office type you want to rent/purchase, the domain in which the branch operates etc.
What is a branch?
The main difference between a branch and a legal entity is that for all the actions of the branch the foreign company is responsible and only certain activities can be performed by branches, without the approval of the parent company. It is also important to know that the branch is simply a sub-division of its parent company.
What is the law regulating branch offices in Hungary?
The main legislation that must be followed by those who want to establish a branch in Hungary is the Branch Offices and Commercial Representative Offices Act CXXII of 1997, which must be respected during the commercial activities carried out by the branches of foreign companies.
What is the procedure of registering a branch in Hungary in 2026?
A dossier must be prepared and it must contain the documents presented below; more information on these papers can be provided by our team of consultants in company registration in Hungary:
- the standard application and the certificate of registration of the foreign company;
- the share capital certificate, as well as the memorandum and the articles of association of the parent company;
- the decision of opening a branch and a list with the directors and the secretary, as well as the registered address of the parent company;
- the name of the branch and its registered address and the name of the representative appointed with power of attorney;
- the signature specimen for the person responsible for the branch’s decisions.
How long does it take to open a branch in Hungary in 2026?
The process of opening a branch in Hungary doesn’t take longer than five working days if all the documents are in good order and are deposited on time.
For more on how to open a branch in Hungary, please watch the video below:
What are the tax regulations for Hungarian branches in 2026?
Given the fact that a local or foreign company will set up the branch office with the purpose of developing a commercial activity, this will create certain tax obligations for this company type. Foreign businessmen who want to open a Hungarian company should be aware that the branch office is liable to local taxes in accordance with the accounting regulations available in Hungary.
What are the accounting obligations during the financial year?
Those who open a company in Hungary (as a corporate body or as a branch office) are obligated to maintain double-entry books and during the financial year, they have the obligation to complete and publish various accounting documents, such as the annual accounts or the simplified annual accounts.
Does your team offer accounting services?
Yes, you can rely on us if you want to hire our team to complete the accounting obligations for your branch in Hungary. We recommend you address us for information on the types of services we offer and our current fees.
What are the rules for the employment of foreign workforce?
Investors who establish a branch in Hungary have the right to employ both local and foreign workforce. The difference in the employment procedure can be given by the nationality of the future employees (when it comes to foreigners), because for EU nationals, simpler procedures apply (they do not need visas or work permits).
The infographic below presents details on how to open a Hungarian branch in 2026:
Can you offer company formation services in other countries?
Yes, our team can provide company formation services not only in Hungary, but also in other European countries, as well as jurisdictions from other continents, such as Asia or South America. For this purpose, investors should know the following:
- we can also help you if you are interested in setting up a branch office in Singapore, through our Singapore partners;
- in case you need legal services in another Asian country, for example in India, we recommend our partner law firm – Lawyer-India.com;
- we also provide assistance in Spain, where opening a branch can take approx. 6 weeks and starting a Spanish LLC, up to 4 weeks;
- for company formation services in South America, for example in Brazil, we invite you to get in touch with our partners – CompanyFormationBrazil.com.
If you need more details in regards to establishing or managing branches in Hungary, please feel free to contact our company formation specialists.