Starting a Business in


Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Hungary. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Hungary to 189 other economies.

  • No. Procedure Time to Complete Associated Costs

    Hire a lawyer who will represent the company; create the company deed and prepare any other necessary legal document

    Agency: Lawyer

    The company must be represented by a lawyer during the registration process. The lawyer's commission fee is subject to free agreement, and it depends on the complexity of the case.
    1 day HUF 100,000-260,000 ; varies according to the complexity

    Open a bank account and deposit at least 50% of subscription amount

    Agency: Bank

    Companies must open a bank account and deposit – in cash - at least half of the subscription amount prior to filing for registration with Registration Court. The remainder of the subscription amount must be paid in according to the provisions of the Articles of Association but not later than a year from company origination. The bank account must be opened in person by the company founders.
    1 day no charge

    Apply for registration at the Registration Court (simplified electronic registration)

    Agency: Registration Court

    The Tax Authority examines if the request for company’s registration was submitted to the Court of Registration. The Tax Authority can refuse to issue a tax number if a hindrance (e.g. tax debt exceeding HUF 15 million) exists regarding a managing director, an owner entitled to represent the company or an owner/majority shareholder. The Tax Authority also examines these circumstances and hindrances in case there is any change in the above enlisted persons.

    The Registry Court receives the application for registration, and after a certificate is issued with the company’s name, address, temporary tax and statistical number and the number of reference of the registration. If the National Customs and Tax Authority consider that the founder or the managing director falls under suspicion according to the above detailed statutory obstacles, Tax Authority does not duly send the tax number of the company to the Registry Court within one working day and the registration process will be suspended for the period of the pending investigation.

    Companies can be incorporated in 2 ways:

    1. By simplified electronic filing
    The registration fee: HUF 50,000

    Incorporation: 2 business days (up to 8 business days)
    In the simplified electronic filing, the companies must use a standardized template for the articles of association.

    2. By standard electronic filing:
    The registration fee: HUF 100,000
    Publication fee: HUF 5,000
    Incorporation: 15 business days

    Along with the submission of the registration application, the court also registers companies with the State Tax Authority (for VAT and income tax purposes) and with the Statistical Office through an online system.
    2 days HUF 50,000 for registration (simplified electronic filing)

    Register for social security

    Agency: National Office for Health Insurance

    The company needs to register with the Hungarian Social Security Office.
    1 day no charge
    * 5

    Registration for Municipal Business Tax

    Agency: Tax Department of Municipality

    Newly incorporated companies are obliged to register with the municipality for the municipal business tax (helyi iparüzési adó) within 15 days after registration at the company registrar. The information they need to provide includes: company name, seat, tax number, etc. In Budapest this can happen in three ways: 1. Download and print the registration form from the municipality´s homepage (https://ssl.budapest.hu/web_hair/ufo.do?_ID=2016-01) and submit filled out form by registered mail; or 2. In person at the municipal tax department; or 3. electronic filing of the registration form through the e-government system (ügyfélkapú) if one has access to it. The municipality issues a certificate of receipt for the online registration and, in the case of paper based registration, a stamped certification of receipt. Later on, the municipality issues a local taxpayer-number to the company. The number is sent by mail to the company address. The tax rate in Budapest is currently set at 2% (the maximum limit set by national law; from this downwards the municipality can decide on rebates), payable twice a year.
    1 day (simultaneous with previous procedure) no charge
    * 6

    Register with the Hungarian Chamber of Commerce and Industry

    Agency: Hungarian Chamber of Commerce and Industry

    Economic actors whose registration in the register of companies is mandatory and private entrepreneurs shall within five working days after registration apply for registration in the regional chamber of economy of competence (Section 8/A of Act CXXI of 1999 on Chambers of Economy as amended on January 1, 2012).
    Chamber registers shall contain the following particulars of economic operators:
    a) name;
    b) registered seat, establishment(s), branch(es);
    c) main activity, and the activity or activities actually performed;
    d) tax number;
    e) bank account number(s);
    f) classification according to the Act on Small and Medium-sized Enterprises and the Support Provided to Such Enterprises;
    g) electronic contact information (e-mail, website);
    h) name of legal representative, and - in the case of voluntary disclosure, upon the economic operator’s specific request - name of the designated contact person, including contact information.

    1 day, simultaneous with previous procedure Annual contribution of HUF 5,000

    * Takes place simultaneously with previous procedure.