--- canonical: "https://euincnow.com/company-formation-hungary" dateModified: "2026-10-11" --- # Company Formation in Hungary: Types, Taxes and Costs Forming a company in Hungary takes about four to five business days, usually as a Kft., the limited liability equivalent of a German GmbH, which needs HUF 3 million (about EUR 7,500) of capital that does not even have to be deposited in a bank to incorporate. Hungary offers the EU's lowest headline corporate tax at a flat 9% (plus a local business tax of up to 2%), alongside the EU's highest standard VAT at 27%. A Kft. can be 100% foreign-owned with a non-resident director and set up remotely through a Hungarian attorney, though opening a bank account usually still needs an in-person visit. ## Hungary at a glance - Hungary is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. ### Company types in Hungary - Kft. (Korlatolt Felelossegu Tarsasag) The most common private limited company, modelled on the German GmbH. Owners hold quotas and liability is limited. Minimum capital HUF 3 million (about EUR 7,500), managed by one or more managing directors. - Zrt. (private company limited by shares) For larger or investor-backed businesses, capital divided into shares. Minimum capital HUF 5 million (about EUR 12,500); shares not publicly traded. - Nyrt. (public limited company) Can list on the Budapest Stock Exchange. Minimum capital HUF 20 million (about EUR 50,000). * Company formation in Hungary: key facts (last reviewed July 2026) - Corporate tax A flat 9% corporate income tax, the lowest headline rate in the EU and OECD. On top of it, companies pay a local business tax (HIPA) of up to 2% of net sales (set by each municipality and deductible), and larger firms a 0.3% innovation contribution, so the typical all-in burden is roughly 9% to 11%. - VAT rate Standard VAT is 27%, the highest in the EU, with reduced rates of 18% and 5%. Small businesses under roughly HUF 18 to 20 million of annual revenue can opt into VAT exemption. - Dividends & payroll taxes Dividends to individuals carry the flat 15% personal income tax, with a capped social contribution in some cases. Salaries combine 15% income tax with a 13% employer levy, and municipalities add the local business tax of up to 2% on an adjusted turnover base. - Minimum share capital HUF 3 million (about EUR 7,500) for a Kft. The capital need not be deposited in a bank to incorporate, and the cash portion can be paid in later, so real upfront cash is minimal. A Zrt. requires HUF 5 million and an Nyrt. HUF 20 million. - Setup time About 4 to 5 business days. Documents are filed electronically with the registry court, which issues the registration (plus a tax number and EU VAT number) typically within 1 to 3 business days; plan on 1 to 2 weeks end to end including preparation. - Remote setup Partial. A Hungarian attorney (mandatory) prepares and countersigns the documents and the founder can sign by power of attorney without travelling. The friction point is the bank account, where traditional banks usually require an in-person visit, though fintech accounts can be opened online. - Director / residency No residency or nationality requirement. A Kft. can be 100% foreign-owned with a non-resident sole managing director. The company must keep a registered Hungarian office, and a Hungarian attorney must countersign the filing. - Banking options Traditional banks include OTP, MBH, K\&H, Erste and Raiffeisen; most require the director to appear in person for identity checks. Fintech alternatives such as Wise and Revolut Business can be opened online. The share capital need not sit in the account to incorporate. * Hungary pairs the EU's lowest headline corporate tax (a flat 9%) with the EU's highest VAT (27%). The Kft. mirrors the German GmbH and is the most common entity. Personal income tax is a flat 15%. Company formation legally requires a Hungarian attorney to countersign the documents. ## How to register a company in Hungary - Step by step, this is how a Hungary formation actually runs: 1. **Engage a Hungarian attorney.** Company formation documents must be prepared and countersigned by a Hungarian attorney; this is a legal requirement, not a convenience. 2. **Sign in person or by power of attorney.** Founders can sign abroad with a notarised, apostilled power of attorney; the attorney files electronically. 3. **Court registration.** The simplified electronic procedure usually registers the Kft. within 4 to 5 business days and carries no court duty. 4. **Declare the capital.** The HUF 3 million minimum capital does not all have to be paid immediately, but unpaid amounts restrict dividends until settled. 5. **Tax numbers and banking.** The tax number arrives with registration; a Hungarian bank account is expected, and most banks want the director in person. ## What company formation in Hungary costs - The simplified electronic registration is duty-free, so the real setup cost is the mandatory attorney, typically EUR 400 to 800, plus translations. A registered office service runs around EUR 200 to 500 a year. Accounting is mandatory and monthly, usually EUR 100 to 250 for a small Kft. Watch the local business tax of up to 2% on top of the 9% CIT. ## Who can form a company in Hungary - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Hungary. The director and residency information above identifies the main formation conditions to review. - Hungary fits businesses that will genuinely operate at scale and benefit from the EU's lowest headline CIT at 9%, especially with local staff or manufacturing. For a small remote services company the mandatory attorney, in-person banking expectations and local business tax erode the headline advantage. ## After registration: what Hungary expects each year - Annual financial statements are published electronically by the end of May for calendar-year companies. The 9% corporate tax return follows the same deadline, and the municipal business tax return is separate. VAT returns are monthly at first, then can move to quarterly. Payroll, if any, adds monthly filings. ## Hungary and the 28th Regime (EU Inc) - EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Hungary is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. - No separate topic-level check date is recorded for this profile. Confirm the current requirements with the linked authority before proceeding. ### Reference links - [taxsummaries.pwc.com][1] - [taxfoundation.org][2] ## Frequently asked questions ### Can a foreigner open a company in Hungary? - No residency or nationality requirement. A Kft. can be 100% foreign-owned with a non-resident sole managing director. The company must keep a registered Hungarian office, and a Hungarian attorney must countersign the filing. ### How long does company formation in Hungary take? - About 4 to 5 business days. Documents are filed electronically with the registry court, which issues the registration (plus a tax number and EU VAT number) typically within 1 to 3 business days; plan on 1 to 2 weeks end to end including preparation. ### What corporate tax does a company in Hungary pay? - The headline summary is 9%, with standard VAT of 27%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in Hungary remotely? - Partial. A Hungarian attorney (mandatory) prepares and countersigns the documents and the founder can sign by power of attorney without travelling. The friction point is the bank account, where traditional banks usually require an in-person visit, though fintech accounts can be opened online. ## Source URLs [1]: https://taxsummaries.pwc.com/hungary/corporate/taxes-on-corporate-income [2]: https://taxfoundation.org/location/hungary/