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Hungary is a low-tax and relatively inexpensive jurisdiction for company registration and its continued maintenance. Hungary was not included in any of the black (or gray) lists of international organizations, which gives status to the business located on its territory. A reduced tax rate, an acceptable tax regime and understandable Hungarian legislation create favorable conditions for doing business in this jurisdiction. Registering a company in Hungary is much easier than in other EU countries.

Features of jurisdiction

  • Low-tax onshore jurisdiction, which allows using the advantages of the Double Tax Treaties;
  • Obtaining a VAT number is not long and problematic;
  • Possibility to obtain residence permit for the company's employees;
  • Stability of the banking system;
  • Developed and formed infrastructure;
  • There is a need to open an account with a local bank to pay the authorized capital, this requires the arrival of the director in the bank; uncovered accounts are subject to a fine;
  • There is a requirement to provide financial statements.

ways of using the company

The founders of companies in Hungary can be both physical and legal persons. As practice shows, foreign investors are more interested in limited liability companies or joint-stock companies with limited liability. Registered companies may engage in any kind of legal activity that does not involve obtaining a license or special permit. Banking, insurance, investment and trust activities are licensed in Hungary.


To register a company in Hungary, you need:

  1. Undergo due diligence ("Know Your Customer");
  2. Provide several options for company names;
  3. To sign the forms by the director and shareholder with subsequent notarial or consular assurance.


Type of companyLimited liability company - Korlatolt Felelossegu Tarsasag (KFT);
The company registration term20 - 25 working days;
AUTHORISED SHARED CAPITALHUF 100,000 (equivalent to €350)
PAID IN SHARED CAPITAL50% within a year;
TaxationIncome tax is 9%;
VAT - the general rate of 27%, preferential rates of 18% and 5%;

Tax at source when paying income:
  • dividends – 0% / 15%;
  • percent – 0% / 15%;
  • royalty – 0% / 15%.
The minimum number of shareholders One (residents and non-residents, legal entities and individuals);
The minimum number of directorsOne (residents and non-residents, legal entities and individuals);
Nominal serviceAvailable;
Availability of information about owners and directorsInformation is available in the public register;

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