Hungary

Starting a Business in

Hungary

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 up to 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 189 economies. The most recent round of data collection was completed in June 2014.

Compare Hungary to 188 other economies.

  • Standardized Company

  • Legal form: Korlatolt Felelossegu Tarsasag (KFT) - Limited Liability Company
  • Paid in minimum capital requirement: HUF 1,500,000
  • City: Budapest
No. Procedure Time to Complete Associated Costs
1 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
2 Pay at least 50% of subscription amount into the bank account designated at the time of subscription
Agency: Bank

Half of the contribution paid in cash must be transferred to the bank account of the company by the time of filing the submission to the Registry Court. The remainder must be paid in according to the provisions of the Articles of Association but not later than a year from the establishment.
1 day no charge
3 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 and HUF 5,000 for publication fee.
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
4 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

Explore Economy Data


- OR -

OTHER OPTIONS