Setting Up A Company In Hungary: Administrative Steps

Published on October 3, 2025 and written by Cyril Jarnias

Hungary offers a favorable environment for foreign entrepreneurs looking to establish their business there. With advantageous taxation and simplified procedures, the country attracts numerous investors. Here is a detailed guide to the main steps for setting up your company in Hungary.

Key steps to launch your Hungarian business

Establishing a company in Hungary involves several essential administrative procedures:

1. Choose the appropriate legal form

The first crucial step is selecting the most suitable legal structure for your business. The most common forms are:

• Kft (Korlátolt felelősségű társaság) – equivalent to an LLC
• Zrt (Zártkörűen működő részvénytársaság) – private limited company
• Nyrt (Nyilvánosan működő részvénytársaság) – public limited company

2. Reserve the company name

Next, you need to check the availability of your chosen company name with the Hungarian commercial register and reserve it.

3. Prepare the articles of association

Drafting the company’s articles of association is a crucial step. This document must be prepared in Hungarian and contain all essential information about the company.

4. Open a bank account

Opening a bank account in the company’s name is necessary to deposit the share capital.

5. Register with the authorities

Company registration is done with the Commercial Court (Cégbíróság). You also need to register with the tax and social security authorities.

Essential documents for your file

The list of required documents varies depending on the chosen legal form. Here are the main items to provide:

For a Kft (LLC):

• Articles of association signed by all partners
• Identification documents of partners and directors
• Proof of registered office address
• Bank certificate of share capital deposit
• Manager’s declaration accepting appointment

For a Zrt or Nyrt (PLC):

• Notarized deed of incorporation
• List of shareholders and directors
• Proof of contributions in kind (if applicable)
• Report from a contributions auditor (for contributions in kind)
• Minutes of the constitutive meeting

Optimize your establishment with a suitable tax strategy

Hungary offers an attractive tax regime for businesses, including:

A corporate tax rate of 9%, one of the lowest in Europe.

Tax exemptions for certain business sectors or geographic areas.

Double taxation agreements with many countries, including France.

It is recommended to consult a local accounting expert to optimize your tax structure according to your business activity.

Hire your employees in full compliance

If you plan to hire staff in Hungary, you will need to:

• Register as an employer with the tax and social security authorities
• Comply with Hungarian labor law (contracts, working hours, leave, etc.)
• Set up social declarations and payroll

Did you know? Hungary offers tax incentives for hiring certain categories of employees, such as recent graduates or seniors.

Take advantage of establishment support

Hungary offers various support programs for foreign investors:

• Investment grants
• Tax credits for research and development
• Special economic zones with tax benefits

The Hungarian Investment Promotion Agency (HIPA) can assist you with your procedures and inform you about available support.