The main advantages of setting up a business in Hungary are confidential register of
beneficiaries and the lowest tax rate in Europe — 9%.
6 simple steps to purchase a company
choosing a country
choosing a bank
payment (by any method)
sending documents
company registration
bank account opening
Legal framework
Local legislation provides for the following types of
companies:
Limited liability company (Hungarian: KFT) is established with an initial
capital made up of the contributions by the participants whose liability for the
company obligations is limited to the share of the contribution.
Joint stock company (Hungarian: RT) is established with a share capital that
consists of the predetermined number and par value of shares. Members’ liability
for the company obligations is limited to the value of shares they own. RTs are
divided into public (Nyrt.), that is, traded on a stock exchange, and private
(Zrt.), which cannot be listed.
Societas Europaea — the name of such company shall be ended by the abbreviation
SE. These companies operate (or intend to operate) across the territory of the
European Union.
Limited liability company (KFT)
Requirements:
The director position can only be held by an individual, while shareholders can be both
individuals and legal entities, with no restrictions being imposed on residency and number
of participants.
A registered office, where meeting minutes, register of members, and other documents are
stored, is mandatory.
Tax return and financial statement must be filed annually by the deadline of March 31.
The company is required to have a minimum share capital of HUF 3 million (about €10,000).
KFT registration procedure:
A notary is drawn on in order to prepare the necessary documentation.
According to Hungarian legislation, the foundation documents can only be filed with the
Court of Registry by a qualified local attorney-at-law. The latter is to be provided with
the following data:
Company name
Main activity
Founders’ identity documents and proof of residence (in the case of entities —
registration documents + power of attorney)
Information on company’s members and share capital
Before applying to the Court of Registry, the notary prepares the set of documents listed
below:
Application
Founders’ sample signatures
Proof of company’s registered office address
Articles of association signed by all founders in the presence of the notary (if
signed outside Hungary, the articles must be apostilled)
The notary can file the documents with the Court of Registry in two ways:
By means of electronic communication if model founding document is used (takes 1
day)
Via standard registration procedure (takes up to 15 working days)
Before registration, each company is subject to inspections by tax and customs authorities. It
should be noted that all entities are also registered for taxation purposes by Central
Administration of National Pension Insurance, Chamber of Commerce and Industry, and local
government.
When registration process is complete, the Registrar returns the company’s articles of
association and issues the following documents:
Certificate of incorporation
Extract from the registry of companies
Joint stock company (RT)
Requirements:
The director position can only be held by an individual. There must be a board of directors
consisting of at least three members or a general director of any residency. Shareholders
can be both individuals and legal entities, with no restrictions being imposed on residency.
A registered office, where meeting minutes, register of members, and other documents are
stored, is mandatory.
Tax return and financial statement must be filed annually by the deadline of March 31.
Zrt. is required to have a minimum share capital of HUF 5 million (about €17,000), Nyrt. —
HUF 20 million (about €67,000). When registering a company, not less than 25% of the share
capital is to be paid up, and the remainder must be provided within a year of registration.
RT registration procedure:
A notary is drawn on in order to prepare the necessary documentation.
According to Hungarian legislation, the foundation documents can only be filed with the
Court of Registry by a qualified local attorney-at-law. The latter is to be provided with
the following data:
Company name
Main activity
Founders’ identity documents and proof of residence (in the case of entities —
registration documents + power of attorney)
Information on company’s members and share capital
Before applying to the Court of Registry, the notary prepares the set of documents listed
below:
Application
Founders’ sample signatures
Proof of company’s registered office address
Articles of association signed by all founders in the presence of the notary (if
signed outside Hungary, the articles must be apostilled)
The notary can file the documents with the Court of Registry in two ways:
By means of electronic communication if model founding document is used (takes 1
day)
Via standard registration procedure (takes up to 15 working days)
Before registration, each company is subject to inspections by tax and customs authorities. It
should be noted that all entities are also registered for taxation purposes by Central
Administration of National Pension Insurance, Chamber of Commerce and Industry, and local
government.
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