Company Formation in Hungary
Hungary is one of the best jurisdictions within the EU for business. Fast remote incorporation (from 1 week).
- Strategic location in the EU
- Automatic receipt of Hungarian and European VAT numbers
- The lowest corporate income tax in the EU
- Suitable for logistics, IT, services & adult businesses
Costs and our Packages for Company Formation in Hungary
We offer a single full-inclusive package for projects willing to register a company in Hungary. The package basically provides a whole functional set-up with a bank account.
Consulting team dedicated into advising the best suitable jurisdiction for your project.
+44 20 4577 0974
FinTech business development expert with leading experiences in innovative payment services providers.
+372 53 42 2033
Business consultation on corporate structures in Hungary.
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Business consultation
Our service package for a fully operational Hungarian Limited Company.
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LLC Company Registration
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Legal address
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Certificate of Incorporation
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Articles of Association
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Corporate Documents
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Tax Identification Number (VAT Certificate)
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Corporate Account in Hungary
Getting started with company registration in Hungary
Hungary is currently one of the most interesting jurisdictions for business in the European Union. Thanks to a low tax rate, a strategic location, and a positive stance toward various business activities (including adult business), Hungary is a solid option for companies willing to start or expand their activity within the EU.
- Requirements
- Duration
- Remote incorporation
- Requirements
- VAT
- Documents
What should you prepare to register a company in Hungary
The experts of LegalBison will assist you throughout every step of it once you decide to register a company in Hungary:
- Initial consultation and agreement;
- Payment of the full invoice;
- [IF REMOTELY]: Notarization of POA by client;
- Preparation of registration documents;
- Document signed at the notary;
- Official register validity: immediately.
How long does it take to form a company in Hungary?
It takes about 1 week to incorporate an LLC in Hungary. Note that this duration period is also dependent on the swiftness of providing the necessary documents.
Can I form a company in Hungary remotely?
The whole incorporation process can be conducted remotely. No travel is necessary. However, the notarization of documents is necessary.
- A Power of Attorney (POA) from (all) partners/shareholders is needed;
- The POA is sent to you by us based on the services you want;
- You have to certify the POA by a notary and, in some cases, legalize it by apostille (some countries need full legalization);
- Once you have the POA on you, we double-check, and you send us the original form (physical document) via courier to our address;
- Hungary is part of the Hague Convention of the Apostille.
Required documents to provide to register a company in Hungary
The following documents are typically required from entrepreneurs willing to form an LLC in Hungary:
- Passport copies of directors and shareholders;
- Proof of address;
- Desired company name and contact details;
- Business activity codes (based on NACE classification);
- Personal details such as the city of birth and the mother’s maiden name.
Every Hungarian LLC has to get a VAT number (included in our services)
Hungarian companies are automatically registered for VAT upon registration, and, as soon as they get their Hungarian VAT number, they can also immediately obtain their EU VAT number.
- The VAT rate is 27%;
- Whether there are business activities or not, VAT reporting must be done monthly;
- A VAT refund is possible. For the first-time VAT refund, the refundable amount must be at least 1 million HUF. All other succeeding refunds can be obtained regardless of the amount.
Required documents to provide to register a company in Hungary
- Passport copies (scans) of shareholder/s and director/s, as well as beneficiary owner, if applicable;
- A Power of Attorney (in case of a remote company registration);
- Certified company documents (in case at least one of the shareholders is going to be a foreign company).
Note: The minimum capital requirement depends on the structure of the company you intend to register, but for the more popular structure, a Limited Liability Company (Kft.), the requirement is at least HUF3 million (about 10,000 EUR).
Making progress together: the words of our clients
Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen LegalBison as our Partner for incorporations, globally.
Very proactive, responsive, and able to provide solutions and advice. The firm is familiar with the new industry of blockchain and cryptocurrency
We are happy to cooperate with LegalBison for more than 2 years and during this time they definitely secured a reputation of very professional and reliable partner. Great knowledge, competence and good attitude. Keep up the good work!
Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth
The team of LegalBison was very helpful and fast in supporting my company’s structural set up. They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!
I highly recommend Legal Bison to any entrepreneur or business seeking top-notch services for their company formation. Their commitment to excellence and customer satisfaction is truly commendable.
As a result of the fruitful cooperation with LegalBison, Yellow Card obtained a VASP registration, fast and without any legal complications.
LegalBison excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
LegalBison helped us navigate a space that’s often uncertain and complex, which gave us the confidence to move forward with our project.
Things to know before registering your company in Hungary
Taxation of companies in Hungary
Resident companies are taxed on all income, regardless of whether it’s derived domestically or internationally. All companies are taxed at a flat rate of 9% for corporate income tax.
- In addition, there is also a 0-2% municipal tax on all profits depending on the location of registration of the company and/or where its business activities are conducted;
- Dividends, however, are not taxed except for those derived from sources that are in low-tax countries. In this case, the dividend tax is 9%.
Note: the municipal tax of the city of Budapest is 2%, making the effective income tax rate 11%. Currently, LegalBison only offers company registration in Budapest.
DTAA signed by Hungary for companies
Since Hungary is a member of the EU, it has entered into different agreements with different jurisdictions to avoid double taxation.
To date, it has ongoing agreements with Albania, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Iceland, India, Indonesia, Iraq (ratified, not yet in force), Iran, Ireland, Israel, Italy, Japan, Kazakhstan, Kosovo, Kuwait, Latvia, Liechtenstein, Lithuania, Luxemburg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Netherlands, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, San Marino, Saudi Arabia, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taipei, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uruguay, Uzbekistan, and Vietnam.
Accounting and audit requirements for a company in Hungary
In Hungary, companies must maintain accounting records in Hungarian and comply with double-entry bookkeeping methods. A financial report is filed annually regardless of whether there were business activities or not. All financial reports are signed by the director and the accountant
For newly registered companies, an audited annual financial report may not be required, but after two years of operation, filing of an audited annual financial report is required, except in the following cases:
- Your average annual net sales revenues for the 2 prior financial years did not exceed HUF300 million (USD1 million) on average;
- The average number of people employed did not exceed 50 people on average for the 2 prior financial years.
Economic substance and residency requirements for companies in Hungary
- Regardless of the company structure sought to be registered, no residency restriction is mandated in Hungary;
- A company may even be fully foreign-owned and managed.
LegalBison offers help with all of the above requirements. We assist and are local on the ground. Speak now for free with one of our consultants to get your business started.
- Taxes
- Double Tax Treaties
- Accounting
- Residency
Taxation of companies in Hungary
Resident companies are taxed on all income, regardless of whether it’s derived domestically or internationally. All companies are taxed at a flat rate of 9% for corporate income tax.
- In addition, there is also a 0-2% municipal tax on all profits depending on the location of registration of the company and/or where its business activities are conducted;
- Dividends, however, are not taxed except for those derived from sources that are in low-tax countries. In this case, the dividend tax is 9%.
Note: the municipal tax of the city of Budapest is 2%, making the effective income tax rate 11%. Currently, LegalBison only offers company registration in Budapest.
DTAA signed by Hungary for companies
Since Hungary is a member of the EU, it has entered into different agreements with different jurisdictions to avoid double taxation.
To date, it has ongoing agreements with Albania, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Iceland, India, Indonesia, Iraq (ratified, not yet in force), Iran, Ireland, Israel, Italy, Japan, Kazakhstan, Kosovo, Kuwait, Latvia, Liechtenstein, Lithuania, Luxemburg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Netherlands, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, San Marino, Saudi Arabia, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taipei, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uruguay, Uzbekistan, and Vietnam.
Accounting and audit requirements for a company in Hungary
In Hungary, companies must maintain accounting records in Hungarian and comply with double-entry bookkeeping methods. A financial report is filed annually regardless of whether there were business activities or not. All financial reports are signed by the director and the accountant
For newly registered companies, an audited annual financial report may not be required, but after two years of operation, filing of an audited annual financial report is required, except in the following cases:
- Your average annual net sales revenues for the 2 prior financial years did not exceed HUF300 million (USD1 million) on average;
- The average number of people employed did not exceed 50 people on average for the 2 prior financial years.
Economic substance and residency requirements for companies in Hungary
- Regardless of the company structure sought to be registered, no residency restriction is mandated in Hungary;
- A company may even be fully foreign-owned and managed.
LegalBison offers help with all of the above requirements. We assist and are local on the ground. Speak now for free with one of our consultants to get your business started.
Alternatives to company formation in Hungary
Our team has curated the following jurisdictions as being worthy alternatives to a company registered in Hungary.
Company Formation in Estonia
from 450 €-
Fast incorporation
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0% tax on undistributed income
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Entirely remote
Company Formation in Austria
from 1.800 €-
Prestigious standing
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Competitive tax rate in EU
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Completely remote
Company Formation in Poland
from 1.500 €-
0% Tax if undistributed
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A fast growing EU state
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Tech savvy workforce
Company Formation in France
from 1.500 €-
Allows nominee shareholders
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Low share capital
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Possible tax exemption
Company Formation in Lithuania
from 1.290 €-
Very business friendly
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Competitive tax rates
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A growing EU economy
Company Formation in Bulgaria
from 1.850 €-
Ideal EU jurisdiction
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5-10% tax
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Fast and cheap process
About company registration in Hungary
In Hungary, the corporate income tax rate is 9%. An additional % can apply, depending on the municipality where the company is registered. In the case of the capital, Budapest, an additional 2% moves the effective corporate income tax rate to 11%. Nonetheless, this rate is still among the lowest in the European Union.
Yes, a foreigner, whether a legal or natural person, may acquire real property in Hungary. Special approval may be required for non-EU citizens.
Yes. However, due to the peculiarities of this industry, we recommend first requesting a consultation with our legal team, for you to understand the specifics of registering a company in Hungary for such activities.
Yes, you just have to comply with the work permit requirements. It is, however, easier to employ EU nationals since there are fewer restrictions, and entry into Hungary is easier as well.
A general business license is generally not required unless your business (financial services, industrial, energy, public utility activities, etc.) is among those expressly and specifically mandated to secure one.
Contact Us
Request more information about incorporation in Hungary now. Our consultants will get in touch in the next 24 hours to draw a roadmap for your project and answer all your questions.
Consulting team dedicated into advising the best suitable jurisdiction for your project.
FinTech business development expert with leading experiences in innovative payment services providers.
