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This section identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm in Hungary.
The country data appearing on this page 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 183 economies. The most recent round of data collection for the project was completed in June 2009.
The table below provides a summary of the procedures and the associated completion time and cost for setting up a standardized company. The table is followed by additional country-specific information on business registration requirements.
Hire lawyer who represents the company, creates company deeds, and prepares other legal documents.
Time to complete:
1-2 days
Cost to complete:
HUF 100,000-260,000 ; varies according to the complexity
Name of Agency:
Comment:
The company must be represented by an attorney at law in the registration process. The lawyer’s fee is subject to free agreement, so it varies significantly according to the services provided and company size. Attorneys charge at least HUF 100,000 for registering a simple limited liability company (KFT), with the official cost of HUF 260,000 paid by the client.
Procedure 2.
Pay at least 50% of subscription amount (at least HUF 250,000) into the bank account designated at the time of subscription.
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Half the cash contribution must be paid in at the time of company establishment. The remainder must be paid in according to the provisions of the articles of association, but no later than a year from establishment.
Procedure 3.
Apply for registration at the Registration Court (simplified electronic registration)
Time to complete:
1 day
Cost to complete:
HUF 15,000
Name of Agency:
Comment:
When the registration court receives the application for registry a certificate is issued for the company with the company's name, address, temporary tax and statistical number and the number of reference of the registration. After receiving the above certificate the company may commence to operate in the form of a pre-incorporated company. This means that the company may operate as an incorporated company but special provisions regarding personal liability of the founder(s) apply. Companies can be incorporated in 2 ways:
1. By simplified electronic filing The stamp duty: HUF 15,000 and there is no publication fee. Incorporation: 1 business day In the simplified electronic filing, the companies must use a standardized template for the article of association. The companies have to fill out the application form and file certain corporate documents specified by the provisions of law. Certain other corporate documents are not required to be filed to the court but must be reviewed and kept by the attorney proceeding with the incorporation procedure. The simplified electronic registration shall take 1 working hour. If the court does not decide within the 1 hour, the chairman of the registration court must make a decision within 1 business day regarding the refusal of the application for registration or the incorporation of the company. If within this period the court does not provide a decision, the registration will occur ex lege on the following business day.
2. By standard electronic filing: The stamp duty: HUF 100,000 Publication fee: 25,000 Incorporation: 15 business days
If the court does not decide within the aforementioned periods, the chairman of the registration court must take measures to reach a decision within 3 business days regarding the incorporation or the refusal of such application. If within this period the registration court does not decide in the given time frame, the registration will occur ex lege. The company may choose to meet publication requirements by publishing the required information on its website instead of the Company Gazette (Cégközlöny). In the latter case, no publication fees are payable.
Simultaneously with the submission of the registration application, the court registers companies with the State Tax Authority (for VAT and income tax purposes) and with the Statistical Office through an online system.
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