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Company formation steps made as easy as possible!

Set up your Hungarian company with Budapest Consulting Now!

Do you wish to establish your company but you need more information about the Limited-Liability Company procedures, taxation or even other Budapest Consulting services?

Company formation steps made as easy as possible! Company formation steps made as easy as possible!

Forget the offshore, with this change, Hungary provides the best tax environment in the region. Contact us now to get all the details and start registering your Limited- Liability Company in Hungary.

The Hungarian Limited-Liability Company or LLC (KFT) is the preferred corporate form for foreigners for inward investment into Hungary, and for investors or entrepreneurs who want to minimize their taxes and conduct business internationally.

How to establish a Limited-Liability Company

You plan it, we enhance it: within 1 day it’s done!

Company registration in Hungary has a fluently and safely functioning, long established system, designed to be both legally solid and fitting, flexible and fast. Our professional assistance guided thousands of satisfied clients through this gateway over the last thirteen years, since the very beginning of the current legislation came into effect.

In 2017, The Hungarian government introduced its 9% corporate tax rate - that is the lowest in the EU.

It applied equally to small and medium-sized enterprises as well as large corporations.

The benefits of starting an LLC in Hungary are tremendous. Besides the lowest corporate tax rate, foreigners can own 100% of the shares, and the liability of its owners to the company extends only to their capital contributions.

General and simplified way of company incorporation

Since 2006, in Hungary the procedure of incorporation has been fully electronic and can be done online. The countersignature of an attorney or a notary is required to the deed of foundation and to the application. The legal representation is mandatory during the whole process. The so-called simplified way of incorporation means that the company shall be established by using a standard charter document, provided by the Companies Act. It results a faster and cheaper registration process.

New company registration step by step:

  • Corporate documents must be prepared
  • Registered Office Address for Seat Registry
  • Constitutive documents must be signed in the presence of a local Hungarian lawyer or via skype
  • Client Gateway and Company Portal registration
  • Hungarian Personal Tax ID if needed
  • Registering the company in the Court of Registration of Hungary and obtaining a (EU) tax ID.
  • Business Bank account can be opened by the founders in person and the authorized capital is paid in to it
  • Sign agreement with a qualified local accountant, for providing accounting support.
  • Registry of Chamber of Commerce and the Government Municipality.

Organizational Structure of a Limited-Liability Company

Members' Meeting

The supreme body of a Hungarian company is the members' meeting. Members' meetings are to be convened at least once every year.
The principal duty of the supreme body of a business association is to adopt decisions on fundamental and strategic issues. The matters rendered under the exclusive competence of the supreme body are defined by the provisions pertaining to the specific company forms.
Meetings of the supreme body may be attended by the members of the business association, and - without voting rights - any person invited according to legal regulation or the memorandum of association. All members of the business association have the right to partake in the activities of the supreme body. The members' meeting has a quorum if at least half of the initial capital or the majority of the eligible votes are represented.

Managing director(s)

Administration of the company's affairs and representation of the company are carried out by one or more managing directors elected from among the members or third persons. The memorandum of association may provide that all members be entitled to exercise management and representation. Managing directors keep records of the members of the Hungarian company. Also, a legal entity can be the manager of the company.

Owners and Directors

The owners of a Hungarian LLC may be of any nationality without a Hungarian residency status. The minimum number of owners is 1. Supervisory board is not required if the number of employees are less than 200. Owners for a Limited-Liability Company in Hungary are called members. The whole business structure of an LLC is known by its flexibility. A lone member cannot draw a salary, for the IRS considers all profits of the business as part of the owner's personal income.
Multi-member LLC's roles are the same as for partners. Members can decide to share profits disproportionally to each member's investment, or giving a greater share to those more actively involved with running the business. The number of directors is not limited. The LLC director is responsible and liable for everything that happens within the company.

Business shares of a Limited-Liability Company

Following registration of the Hungarian company, the rights of members and their share from the assets of the company are embodied by their business shares. Unless otherwise drawn in the memorandum of association, the business shares of members must be consistent with their respective capital contributions. Identical membership rights must be attached to equivalent business shares. The shares can be given by the individual or by any other entities, specified by the memorandum of association. Each member may have only one business share. One business share may be owned by several persons. With the exception of the company's own business share, business shares may be freely transferred among the members of the company. Members are entitled to receive a share from the Hungarian company's taxed profit. The profit cannot be distributed till the initial capital has not paid up full.

The company's capital

The initial capital of the Hungarian company consists of the capital contribution of the individual members. Capital contributions are provided by the members in cash and in kind to comprise the capital of the company. The amount of initial capital for an LLC in Hungary may not be less than 3 million Hungarian forints. It's not necessary to pay up full the initial capital at the time of the registration, however in-kind contributions must be made available to the company at the time and in the manner specified in the memorandum of association. If the in-kind contribution was not made available to the company in its entirety at the time of foundation, it has to be provided within 2 years from the company's registration

company may be registered only if, prior to the submission of the application for registration, all in kind contribution is available, along with the minimum amount of cash contribution.

Requirements to start the incorporation procedure

In case of the shareholder being a natural individual person, we only need a passport copy or a European ID. European national insurance number (if exists), and the mother's maiden name of the shareholder and manager(s) are also necessary.

In the case of a legal entity, a paper format extract of the company register would be required, showing the name of the representative person. This document cannot be older than 3 months. These documents must be apostilled in the source country and officially translated in Hungary before the submission. (The application can be only submitted once the translated original document is available.)

The presence of the representative person is also required for signing documents. The registration procedure for a Hungarian company can be done remotely by signing the documents in front of the consul. In this case we prepare the documents and send you by email. Contact us to set up an appointment in Budapest, Hungary or at the nearest Hungarian consulate. The whole procedure can be done remotely and by our law firm's legal representation.

Company Name

When you set up a Limited-Liability Company in Hungary, you need to choose a name that is not similar to other names, let alone already occupied by others being registered. Unequivocal differences can only be identified if the likelihood of confusion can be clearly ruled out at first glance. In Hungary, the name Limited-Liability Company-or the abbreviation of ' Kft. '-must be indicated in the company's name.

Company Address/Seat Registry

Hungarian Companies must be registered with a valid Hungarian address. Wherever the registered address is, that is where the registration will be done through the branch of Court of Registration. The registered address is where all necessary correspondences might be sent to, by the tax authorities.


Hungarian Limited-Liability Company must open at least one business HUF bank account in Hungary within 8 days of the company registration. The business company bank account has to be opened personally in Hungary, cannot be opened remotely. No limitation as to how many bank-accounts a company can have or the different currencies the LLC uses. Internet banking is an option for now.

In Hungary, banks provide a wide range of services for individuals and companies. The services include: account management, credit services, pension funds, and insurances.


Corporate Income Tax in Hungary is 9%, which is the lowest in the EU!

On the top of the Corporate Income Tax, the other important tax is the VAT / Value Added Tax. Between 2 Hungarian companies, 27% VAT applies, but when a Hungarian established company with EU VAT number goes into business with a company that also has an EU VAT number, VAT FREE TRADING is being formed.

Company Activity

During the Hungarian company registration, you will have to decide what activities you wish to include in your company. A minimum of one activity needs to be marked and that will be the main activity. You certainly can list more than one activity for your company but the main activity will be listed as the biggest part of income.

In Hungary, all activities have a NACE code, -that is the business activity code -that helps you find the right activity.