Register Types of Companies in Hungary
Compare the types of companies you can register in Hungary, from the Kft and Zrt to partnerships and branches, and ask our consultants which one fits you.
Investors can register various types of companies in Hungary. For advice on the incorporation procedure, you can always address to our team of consultants in company formation in Hungary.
What types of companies can I register in Hungary?
The following legal entities can be incorporated in Hungary by locals and foreign investors alike: the limited liability company, the joint stock company, the general partnership, the limited partnership, the sole proprietorship, but also branches and representative offices.
| Quick Facts | |
|---|---|
| Types of legal entities in Hungary | The main types of companies in Hungary are: – private companies (private company limited by shares – Zrt., and the limited liability company – Kft.); – public company – public company limited by shares – Nyrt.; – partnerships – general partnership and limited partnership; – branch office. |
The characteristics of the LLC | The LLC (Kft.) is a company type set up with a capital of HUF 3 million. Investors benefit from limited liability and they can have any nationality. The company can be incorporated by 1 investor and 1 director. It can have audit obligations. |
The characteristics of the stock company | The joint stock company (Nyrt.) is suitable for large enterprises. Investors also benefit from limited liability, limited to the amount of their investment. The company needs a capital of HUF 20 million (for the Nyrt. version) or HUF 5 million (for Zrt., which defines a private joint stock company). The Nyrt. type can have its shares traded publicly. |
| The characteristics of the partnership | There are 2 types of partnerships – limited and general. Both entities must be incorporated by minimum 2 partners. While in a general partnership the partners are fully liable for any corporate debts, in a limited partnership, there is a limited partner, who can be liable only to the amount of his/her investment. |
| The characteristics of the sole trader | It represents the simplest form of business, with very simple tax formalities and easy incorporation. It is registered by 1 investor, who must be a natural person doing business in his/her own name. |
| The characteristics of the branch | A branch is a structure registered as a sub-division of its parent, therefore it doesn’t have legal personality. The parent company is liable for any debts and it is also responsible for its management and operations in Hungary. |
| Legislation regulating company incorporation in Hungary | The Companies Act |
| Corporate taxes | – 9% – the corporate tax; – 27% – standard VAT rate, 18% and 5% – reduced VAT rates; – 13% – social security contributions paid by the employer, 18.5% – social security contributions paid by the employee. |
| Foreign ownership rules | Companies can be set up with 100% foreign ownership, unless exemptions apply (it can be the case of specific economic activities). |
| Double tax treaties signed by Hungary | 83 |
| Main company registration steps | – reserve a trading name; – sign the statutory documents; – register for taxation and obtain a Tax Identification Number (TIN); – open a bank account (all types of companies in Hungary must have a bank account for business transactions); – have a registered address. |
| Corporate tax number required (yes/no) | Yes |
| Resident director/shareholder requirements | There aren’t any residency requirements (but they can appear in certain sectors). |
| Can investors modify the legal entity of a Hungarian company? | Yes, all types of companies in Hungary can be modified into other legal entities. |
| Ways in which our team can assist investors | Our team of specialists can help you select the most suitable legal entity and assist throughout the entire incorporation (gathering and submitting documents, obtain certificates, licenses and approvals). Investors can also rely on our team for business immigration, tax assistance and reporting, and any other matters tailored for a specific business activity. |
What is the most common way to start a business in Hungary?
In general, local and foreign investors opt to open a company in Hungary registered as a limited liability company, given that its characteristics are suitable for small and medium sized companies, which represent the majority of businesses.
Why should I incorporate a limited liability company in Hungary?
The limited liability company in Hungary (kft.) is suited for small and medium sized businesses. Shareholders bear limited liability according to the amount invested in the capital of the company. This legal entity is subject to lower incorporation costs and a minimum share capital of HUF 3 million.
How can your consultants help investors in registering a limited liability company?
You canrely on our team of consultants for legal representation in the incorporation steps applicable to this company type. Some of our main services are:
- prepare the registration documentation (we can prepare the documentation in Hungarian and English);
- assistance in obtaining a registered address for the company (it is mandatory to complete this step, as a part of the process for company formation in Hungary);
- obtain a VAT number.
How much does it cost to register a limited liability company?
There are various costs and fees associated with the registration process. In the list below, you can observe some of the main costs you should expect to pay during the initial registration stages:
- EUR 950 – the standard fee charged by our team for delivering company formation services;
- EUR 300 per year – securing a registered address through the services of a virtual office;
- HUF 3 million (approximately EUR 8,300) – the minimum share capital required for the incorporation of this business form.
The infographic below presents details on the available Hungarian legal entities:
What is a joint stock company in Hungary?
The Hungarian joint stock company can be incorporated as a private entity as long as the shares of the company are not listed to the public, in which case it will be after the abbreviation “zrt”, or it can take the form of a public entity when the company is listed on the Stock Exchange (it will be recognized by the abbreviation “nyrt”).
What are the capital requirements for the joint stock company?
The private joint stock company needs a capital of HUF 5 million, while the public entity needs a capital of HUF 20 million. This company can be opened by one or more founders and a board of directors must oversee the actions of the company.
What types of partnerships can I register in Hungary?
Individuals who want to perform business activities together can form a general or limited partnership. The general partnership requires that all its members are jointly liable for the obligations of this business form. The limited partnership allows only for some members to be fully liable, while others can have limited liability (according to the amount contributed to the capital, in cash or in kind).
What is a sole trader?
A sole trader in Hungary is a natural person who has legal capacity but no legal personality and has registered his or her business in the register of sole entrepreneurs. The individual has full liability for the actions and obligations of the sole trader. This form of businessmay have only one member.
What is a branch office?
A branch office can be incorporated in Hungary by foreign companies interested in having an office here, but which want to have full responsibility on the capital of the branch, its management and business model. It must be noted that the branch is considered a sub-division of the parent company abroad. More about this topic is available here.
How can I register a subsidiary?
Foreign companies also have the possibility of registering a subsidiary, which represents a separate legal entity than its parent company. The subsidiary must be incorporated as one of the legal entities regulated by the Hungarian law (the limited liability company, for instance).
Is it possible to open a representative office in Hungary?
Yes. The representative office is a structure similar to the branch office, the main difference being that it can’t engage in economic activities. It is recommend as a first step to engage with a new market, prior to actually starting a business in Hungary.
Below, you can watch a short video presenting the main types of Hungarian legal entities that can be incorporated by foreign and local investors:
What is the duration of the Hungarian company formation process?
The duration of the registration can vary from minimum 1 week, in the case one wants to register a limited liability company, to three weeks, for a branch office or a representative office, or to four weeks, in the case of the joint stock company, which is the most complex company type that can be registered here.
Can you offer corporate services in other countries?
Our team can assist foreign investors in other countries, with the help of our local partners, such as:
- in case you need other types of services, such as legal services in Thailand, we recommend our partners – AttorneysinThailand.com;
- for more details about the requirements of setting up a company in Germany, but also about the advantages this country offers, feel free to contact our partners from CompanyFormationGermany.com;
- in case you want to establish a company in another country, for example in Singapore, our agents can put you in contact with their partners who can tell you more about the types of companies available in Singapore and can help you register your company.
For more details regarding the types of structures in Hungary or if you are in need of personalized consultancy, please feel free to contact our specialists in company registration in Hungary.
Dr. Ádám Tálosi, Attorney at Law · 2 October 2026Dr. Ádám Tálosi studied at the Faculty of Law of the Károli Gáspár University of the Reformed Church.