Set up your Hungarian company with Law Firm Now!
Do you wish to establish your company but you need more information about the LLC (Limited-Liability Company) procedures, taxation or even other Budapest Consulting services?
Register a company in Hungary in 1 day. Best offer for company formation and VAT registration. Corporate tax is 9%. Our law firm's experts can give you high-quality individual advice on all aspects of the establishment process. Set up and own Hungarian businesses!
Forget the offshore, with this change, Hungary provides the best tax environment in the EU. Contact us now to get all the details and start registering your Company in Hungary.
What is a Hungarian KFT?
A Hungarian KFT is a form of business organization in which the owners (called members) are both individuals and legal entities. The business entity is called a "KFT", which stands for "Korlátolt Felelősségű Társaság".
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 Company in Hungary?
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.
Hungary offers a staggering 9% corporate tax business opportunity that is considered to be the lowest in Europe. Company formation cannot be easier now with this astounding % rate and the fact that this can be done within a few days is a generous plus. Budapest Consulting helps you start your business, register your company and even manage everything from abroad.
Do you wish to establish your company but you need more information about the Limited-Liability Company procedures?
Establishment Time: 1-2 days
9% corporate tax rate - the lowest in the EU.
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.
Read more about corporate tax!
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 formation 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 Gate and Company Portal registration
- Hungarian Personal Tax Number 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.
Read more about the Company Registration process
Ready Made Company
Take an existing Limited-Liability Company with valid EU VAT number that already has an existing bank account and a registered address. With this option, you will have the chosen company from the time of signing the documents, and you can enjoy all benefits of an already established corporation.
Transaction Time: 1-2 days
Enjoy the benefits of a Ready Made Company!
Affiliates and Branch Office
A branch office is a registered Hungarian company of a foreign company. A Branch can only carry out activities that are subject to official permission when the branch is registered.
The Hungarian branch of a foreign company shall indicate the name of the foreign parent company. It is a legal entity, which is subject to corporate tax. The Hungarian branch of a foreign company falls under the scope of the LXXXI Act of 1996 on the Corporate tax and the tax levied on dividends (Tao. tv.).
Establishing Fee: 950 Euro
More about Branch Office Registration!
Virtual Office and Seat Registry
Hungarian Companies must be registered with a valid Hungarian address. Our Virtual Office service gives you guarantee that a letter received by mail will be forwarded to you via email, therefore no information will be lost.
Budapest Consulting not only receives your company mail, opens it and scans it to you but also summarizes what is in it and provides you instructions in English.
Fee: 40 Euro/month
Rent Virtual Office now!
Nace codes / Company Activity
During the Hungarian company formation, you will have to decide what activities you wish to include in your company. A minimum of one activity needs to be marked in the beginning of the company registration, 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. NACE Code is a classification system that groups organizations together, according to their business activities. This search list below allows users to find the NACE code for their categories.
Accounting Services
Accountant in Hungary
Having control over your accounting responsibilities, while staying compliant with all different rules and regulations will help your Hungarian business grow. Budapest Consulting is here to keep all Hungarian requirements applicable in order. We provide qualified accountatns, experienced experts and an overall knowledgeable team for...
More about Accounting in Hungary
Accounting, Invoicing, Tax advisory
Budapest Consulting provides not only the usual accounting and booking services for your business but also NAV Representation, Controlling services, Invoicing, Tax advisory and Audit as well. We manage our accounting services beyond usual as we additionally provide innovative solutions in connection with accounting needs.
Accounting Fee: 170 Euro/month
Read more about Accounting, Booking and Invoicing!
Payroll Services
Salary questions are cardinal matters for any business. With the help and knowledge of our payroll agency, we calculate both the types of occupations that can be used by legislation and the tax benefits that can be applied by companies.
Payroll Fee: 20 Euro/month/person
More about Payroll Services in Hungary
Taxation and Finance
Corporate Tax in Hungary is 9%, which is the lowest in the EU!
Read more about Value Added Tax, Corporate Tax, Personal Income Tax, and Local Business Tax.
Read more about Taxation and Finance
Work Permit in Hungary
You wish to work in Hungary? We will give you the main cornerstones in the maze of this business, called Work Permits!
Special rules and regulations apply in Hungary but we can help you with confidence. There are special rules and steps to take to get a work permit but we offer you our help to make these steps easier, as this way the work permit processing time could be reduced greatly.
Residence Permit in Hungary
Your citizenship and the purpose of your stay will define for how long and with what kind of documents you could be staying in Hungary legally. Get your EU Residence Permit the fastest way!
Budapest Consulting’s knowledge, skills, experiences and expertise can help you with the process and to choose what is the most suitable option for you and your family.
TAX number in Hungary
In accordance with Hungarian laws, anybody who receives money from the state (including state scholarship/student jobs) should have a Hungarian tax number.
The tax number application form has to be submitted to the Tax Authority. After the application, you will get your Tax ID number.
Need a TAX Advice?
Our accountants see the operation of a company as a whole and with advices and insights they can help the business stay legal.
There are certain situations in every business’s life when a more comprehensive picture of the outcome of a transaction is needed. There are times when, in addition to basic accounting, it becomes necessary to have and use a tax professional.
Assistance Fee is upon request.
Read more about Taxes in Hungary!
Need a Legal Consultant?
Financial and legal issues are often interlinked and complementing each other. The key to the stability and success of businesses is that all decisions comply with the legal and financial rules, regulations. This is why we consider it important to be available to our customers in this area.
Our business lawyers are experts in finding solutions to almost impossible situations during or after the company formation, while our advice is legal and straight forward.
Assistance Fee is upon request.
Social Security Administration
You establish your company in Hungary, you have opened your client gate, have your tax ID number, even hired your accountant. But what is next?
Health care and its services in Hungary are covered by social security. The service that you, as a foreigner will have to be qualified for. But how do you qualify?
Budapest Consulting has your back!
Get your Social Security Card!
Open Bank Account in Hungary
A Hungarian Limited-Liability Company (KFT) 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.
We can help you to open your Bank account in Hungary!
Client Gate Assistance
The Client Gate acts as a gateway between you, *the client* and NAV, *the Hungarian Tax Authority*. It is a portal maintained by the Government for your electronic administration.
Tax reports are submitted -, residency and work permit appointments are booked thru it. Client Gate is also an access point to the Company Gate where all company related issues can be handled and solved.
Client Gate can only be opened personally in Hungary or in the Hungarian Embassy of your chosen city, as both your signature and your picture taken are needed.
Get Your Appointed Auditor
An appointed auditor is needed for business associations that are operating on the basis of double-entry bookkeeping. The appointment of an auditor is mandatory in accordance with the Accounting Act if both or any of the following conditions are met:
- The annual net sales exceed HUF 300 million on the average of two financial years preceding the financial year under review
- The average number exceeds 50 members of employees on the average of the two financial years preceding the financial year under review
For companies starting during the year, the revenue and the number of employees should be viewed proportionately annualized.
Audits can be managed in Hungary by people or companies that are current members of the Chamber of Auditors, having audit licenses.
Our partner holds such a license and would be available for your service.
Business Liquidation
Budapest Consulting is available for the liquidation service of your company if needed.
Full liquidation process takes the minimum of 4 month and specific documents are needed.
Liquidation Services in Hungary
Organizational Structure of a Hungarian Company (LLC)
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 Company (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.
A 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.
How to check if a company name is registered in Hungary?
If you are interested in starting a new business in Hungary, you should make sure that your company name is not registered with the Hungarian Trade Register before starting the formation process.
In Hungary, it is possible to check if a company name has been registered at the Hungarian Trade Register. It is done via the website of the Hungarian Trade Register, which is https://www.e-cegjegyzek.hu/
There are two ways to check: via the online search tool or by directly entering the relevant elements of the company name and the details of its owner in the search field.
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.
Read more about our Virtual Office Service