Company formation in Hungary

Company formation in Hungary – Hungarian Company Formation

Choose the type of company: Kft – Start-up price: €220.-

 

  • Installation
  • Name check and customs clearance
  • Preparation of Certificate of Incorporation
  • 2 natural shareholders
  • 1 director involved
  • Digital copy of the company registration
  • Estimated time for processing the application: 2 weeks

 

Forming a Limited Liability Company (Kft) in Hungary involves several steps, regulations, and requirements.

Here’s a general overview of the process:

  1. Choose a Company Name: Your company name must be unique and not already registered with the Hungarian Court of Registration. It’s advisable to check the availability of your desired name in advance.
  2. Draft the Articles of Association: This document is the foundational legal document of your Kft, detailing the company’s operating rules, ownership structure, and management. It can be drafted as a notarial deed or a private document with full probative value.
  3. Capital Requirements: The minimum required capital for a Kft in Hungary is HUF 3,000,000 (approximately EUR 10,000). At least half of this amount must be paid up before registration, and the remainder can be paid within a year.
  4. Bank Account: Open a bank account in Hungary and deposit the initial capital. The bank will issue a certificate confirming the deposit of capital, which is required for the registration process.
  5. Company Seat: Your Kft must have a registered office in Hungary, which will serve as the official address for governmental and legal correspondence.
  6. Appoint Executives: Designate the managing director(s) of the company. The managing director(s) must consent to their appointment in writing, acknowledging their responsibility for the role.
  7. Registration with the Court of Registration: Submit the Articles of Association, the bank certificate for the capital deposit, the executives’ consent, and other required documents to the Hungarian Court of Registration. This process is usually facilitated by a lawyer.
  8. Tax and Legal Registrations: After the company is registered, you need to obtain a tax number from the National Tax and Customs Administration of Hungary (NAV) and register for social security and other necessary insurances.
  9. Other Registrations: Depending on your business activities, you may need to obtain additional licenses and permits.
  10. Accounting and Reporting: A Kft is required to maintain proper accounting records, prepare annual financial statements, and submit tax returns in accordance with Hungarian law.

 

From January 1, 2024, a new regulation has come into effect in Hungary regarding companies:

New rules for companies from January will make corporate finances simpler and more transparent. These changes will be particularly important for banks and other lenders.

  1. New features on company datasheets: The changes will allow company datasheets to indicate if there are any restrictions on company ownership (e.g., certain parts cannot be sold or encumbered). This helps lenders better understand the rights and restrictions associated with company ownership.
  2. More detailed information on liens: If a company provides collateral to its lenders (e.g., using a part of the company as collateral for a loan) or just takes out a loan, the new rules require that these details be included in the company information. This means that lenders, competitors, and customers can more accurately see the value of the collateral, the sources from which the company lives or develops, or the financial situation of the company, which can be viewed by anyone free of charge from the public database starting from January 1, 2024.
  3. Greater transparency and security: These changes help companies and their lenders better understand the financial situation of companies. This makes it easier to decide whether to provide a loan and under what conditions.

Overall, these changes contribute to greater transparency and security between companies and their lenders, which can facilitate better financial decisions and the development of business relationships.

So, if these new conditions have discouraged you, we recommend setting up a company in England on this site, or depending on the activity, in any other country for company formation on this site, or ask for our help on any of our contacts.

However, if these news have not deterred you from forming a company in Hungary, then you can get a comprehensive overview of our further services by looking at the following price list:

Services Service fee Dues Publication fee
Kft incorporation €150.- none none
Bt incorporation €150.- none none
immediately Company formation €150.- none none
Company modification €150.- €80.- €20.-
Sale and purchase of business shares €180.- €80.- €20.-

Headquarters service:

Budapest: 10.000.- ft + VAT / month
In Győr: 8.000.- ft + VAT / month