Company Formation in Hungary 2026

Company formation in Hungary does not require the owners to travel: a limited liability company is registered with the company court by electronic filing, on articles drafted and countersigned by a Hungarian lawyer. What decides whether the structure works is not registration but how the capital is paid in, the bank’s review of a foreign owner, the residence-permit route for the manager, and how the company is treated in the owners’ home country.

Company formation in Hungary: which structure is right for you?

For most foreign investors, company formation in Hungary means a limited liability company: 100% foreign ownership, HUF 3 million minimum capital, a manager of any nationality, the EU VAT and customs regime and a 9% corporate tax, one of the lowest rates in the European Union. It can be formed with one member or several; the choice depends on who the owner is and whether a separate legal entity is wanted.

Whatever the structure, the reasons to consider company formation in Hungary are on the tax side: a 9% corporate tax, no domestic withholding tax on dividends, interest and royalties paid to corporate recipients, and exemption of dividends received by a corporate shareholder. The development tax allowance (up to 80% of corporate tax for 13 years), R&D deductions and investment grants are further incentives; they are conditional, tied to investment thresholds and not automatic.

How does company formation in Hungary work, step by step?

OzbekCPA coordinates incorporation with the legal team in Hungary: a document list is issued, the articles are drafted with a Hungarian lawyer, translations and legalisations are arranged, the registry filing is made through an authorised representative and the bank opening is supported. Company formation in Hungary is filed fully electronically within 30 days of signing the articles.

1. Day 1–2Structure, name and activitiesOwners, manager and signing authority are decided; the name and activity codes are chosen. Any licensed activity is planned separately, because before registration the company is a pre-company and cannot carry on licensed activities.
2. Week 1–2Documents and apostilleA passport and, if needed, an apostilled power of attorney for an individual owner; an apostilled registry extract, board resolution and ownership chart for a corporate owner. Documents signed abroad must be in Hungarian or bilingual.
3. In parallelRegistered address and delivery agentA registered address in Hungary is set up and, where required, a delivery agent is appointed for a foreign member or manager; the agent is often the drafting lawyer.
4. CapitalCapital and bank certificateThe capital contribution is paid into a bank and the certificate is added to the filing. Sources give different proportions to be paid in at registration, so the legal team confirms the amount up front.
5. 1–15 working daysElectronic filing and court decisionThe lawyer files electronically. The statutory decision time is 1 working day on the simplified route and up to 15 working days on the standard route; the tax authority first makes a preliminary registration and the tax number follows the court decision. In practice sources report anything from a few days to several weeks.
6. After registrationBank, chamber and tax registrationsChamber of commerce registration within 15 days; the bank account is opened, VAT status is declared and a technical user is obtained for the tax authority’s e-invoicing system.

An investor who opens a branch instead of company formation in Hungary follows the same sequence; the difference is that the parent’s documents are apostilled and translated, a representative resident in Hungary is appointed and the liabilities stay with the parent.

Is a local partner, a local manager or a nominee director required?

No. Company formation in Hungary requires no Hungarian partner, manager or representative; a foreign owner may hold 100% of the company. There is no nationality or residence requirement for the manager. A supervisory board is mandatory only above 200 employees.

Two practical requirements of company formation in Hungary remain: a registered address in Hungary and, for a foreign member or manager, a delivery agent. The sources disagree on the scope (only foreign businesses with no seat or branch in Hungary, or every foreign member or manager), so the legal team confirms it up front; in practice the agent is usually the drafting lawyer. A post-office box is not accepted and the property owner’s consent is needed.

In company formation in Hungary, a nominee director was not found to be a separate institution in Hungarian law: every manager entered in the register carries liability for the role, and the beneficial owner is reported separately through the banks. For a company managed remotely, where decisions are taken matters; having foreign managers take key decisions in Hungary lowers the risk of the company being treated as resident elsewhere.

Capital, trade name and multiple activities

Company formation in Hungary with a limited company requires minimum share capital of HUF 3 million (about EUR 7,900), with each member’s contribution at least HUF 100,000. The capital is paid into a bank before registration; sources differ on the proportion due at that point (half, a third, or by the end of the financial year), so it is settled under the Civil Code when the articles are drafted. A private company limited by shares needs HUF 5 million with at least 30% of the cash contribution paid at formation; a branch and a representative office have no capital of their own.

In company formation in Hungary the trade name is chosen freely with the company-type suffix. A prior search of the register and trademark records is recommended; for the same name as the parent, a trademark certificate and the parent’s consent help.

Activities are entered in the register under national classification codes based on the 2025 European classification; no source gave an extra fee or a cap on the number of activities. Licensed activities (finance, health, education, transport) need authorisation before they start. In company formation in Hungary the activity does not change the corporate tax rate, but VAT may be 27%, 18% or 5% depending on the mix.

What does company formation in Hungary cost?

The figures below are indicative amounts for a single-member limited company where company formation in Hungary is the goal (EUR 1 ≈ HUF 380; sources use different rates, so figures may be off by ±5%). Official fees are low; the cost is in legal preparation, translation and apostille, address and accounting. A service quote sets the scope.

After company formation in Hungary, the employer cost of one employee on the minimum wage is about EUR 960 a month (gross HUF 322,800 ≈ EUR 850, plus the 13% employer contribution and a possible vocational training contribution). Accounting fees range from EUR 53 to EUR 440 a month; the upper end includes payroll for two employees. For a branch or representative office the difference is the apostille and translation of the parent’s documents.

Taxes, accounting and invoicing after incorporation

For company formation in Hungary within a group, transfer pricing rules under a new decree are mandatory from the 2026 tax year: the local-file exemption is about EUR 395,000 per transaction, and intra-group service charges from the parent need a benefit test. A branch’s profit is taxed at 9%; a representative office earns no income and pays no corporate tax.

Work permits and employer obligations

Company formation in Hungary gives the manager no automatic right of residence, and since June 2026 the guest-worker route has been closed. Turkish nationals were never on the guest-worker list, the employment-permit list or the National Card list. For a company manager the remaining routes are: the guest self-employment permit (one year, three in total) if the company has at least five Hungarian or EEA employees or the manager’s presence is essential; the Hungarian Card, if the person is an owner or manager who also works and meets the qualification condition; the EU Blue Card or an intra-corporate transfer permit for managers and specialists; and a guest investor permit with a fund share of at least EUR 250,000.

For a manager moving after company formation in Hungary, processing is 21 days administratively and up to 70 days for the decision. Turkish citizens need a Schengen visa for short visits: applications go through the authorised visa centres and take up to 15 calendar days. Which permit applies depends on the company’s headcount and the manager’s qualifications and salary, so it is settled before incorporation; the 2026 decrees are still changing.

The employer burden after company formation in Hungary is as follows: the employer pays 13% social contribution tax on gross pay (plus a vocational training contribution), and the employee bears 18.5% social security and 15% income tax. On a gross HUF 1,000,000 salary, net pay is about HUF 665,000 and the employer cost about HUF 1.145 million. The 2026 minimum wage is HUF 322,800 gross and the guaranteed minimum HUF 373,200.

After company formation in Hungary, a written contract and registration of the employee with the tax authority before the first day are mandatory; for a foreign employee the permit is checked before day one and start and end are notified within five days, with a fine of up to HUF 1 million per employee. The social security agreement in force between Turkey and Hungary since 2018 allows secondments of up to 24 months (60 months in total with mutual approval) without contributions in the host country.

The home-country side: what decides the outcome

• Place of effective management. A Hungarian company whose decisions are taken in another country is treated as resident there in most countries and taxed on its worldwide income. A registered address or virtual office does not answer the question; a real manager in Hungary, decision records and an address are the only defence.
• Two sides of the 9% rate. A 9% rate is an advantage in Hungary; in the owners’ country the minimum-tax test for participation exemptions is typically around 15%, which 9% plus local business tax of up to 2% does not meet. Controlled foreign company rules often use a threshold below 10%, and 9% sits under it; for operating companies the passive-income test usually keeps the rule from applying. The choice is made on the total burden in both countries.
• Intra-group invoices. Management and consulting invoices from the parent to its Hungarian subsidiary meet the benefit test under the new transfer pricing decree; the same invoice is reviewed in the parent’s country. The agreement is designed for both sides together.
• Branch or company? In company formation in Hungary this choice matters twice. A branch’s profit counts as the parent’s own income: participation exemptions in the owners’ country do not apply to a branch, and Hungary’s 9% is credited against the parent’s tax. For a limited company, the dividend exemption and controlled foreign company rules apply.
• No withholding, no credit. Because Hungary does not withhold on dividends to a corporate recipient, there is no foreign tax to credit in the owner’s country; unless an exemption applies the dividend is taxed there. Having no withholding therefore does not remove the tax burden.
• Individual owners. How the 15% income tax and 13% social contribution tax charged in Hungary are treated in the owner’s own return is a separate question; a manager title or a short-stay visa does not change tax residence elsewhere.

Frequently asked questions