Company Formation in Hungary for Non-Residents
Hungary is a member of the European Union with a flat 9% corporate income tax rate, an electronic company registration system and a central location in Central Europe. It is a practical base for holding companies, manufacturing and trading businesses, shared service centres and technology companies operating across the region.
We support non-resident founders at every stage: company registration, the registered office address, accounting and tax reporting, employment and payroll, and corporate bank account opening.
At a Glance
Jurisdiction
Most Common Legal Entity
Minimum Share Capital
Ideal For
Estimated Incorporation Time
Corporate Income Tax
VAT
Delivery Agent
Why Entrepreneurs Choose Hungary
Hungary combines a competitive tax base with EU membership and a fully electronic company registration procedure.
Key advantages include:
- Membership of the European Union and access to the European Single Market;
- A flat 9% corporate income tax rate;
- No withholding tax on dividends, interest and royalties paid to companies;
- Fully electronic company registration through an attorney;
- A central location for business across Central and Eastern Europe.
Company Registration in Hungary
Companies are registered by the Court of Company Registration. The procedure is fully electronic, and representation by an attorney is mandatory.
- The articles of association are prepared and countersigned by an attorney;
- The application is filed electronically within 30 days of signing the articles;
- In the simplified procedure based on model articles, the court decides within 1 working day;
- In the general procedure, the court decides within 15 working days;
- No registration duty applies to a Kft.; for a Zrt., the duty is HUF 50,000 in the simplified procedure and HUF 100,000 in the general procedure.
Company Forms in Hungary
Limited Liability Company (Kft.)
The korlátolt felelősségű társaság (Kft.) is the most widely used form for operating businesses. The minimum share capital is HUF 3,000,000, and each member’s contribution must be at least HUF 100,000. Members are not liable for the company’s debts beyond their contribution.
Private Company Limited by Shares (Zrt.)
The zártkörűen működő részvénytársaság (Zrt.) is a company limited by shares whose shares are not listed on a stock exchange. The minimum share capital is HUF 5,000,000. It suits larger projects, investor-backed businesses and structures that plan to issue shares.
Registered Office and Delivery Agent
Every Hungarian company must have a registered seat (székhely) in Hungary. The seat is the company’s registered office and mailing address, where its business and official documents are received, filed, kept and made available, and it must be marked with a company sign.
The seat may be a property the company owns or is entitled to use, including use provided under a registered seat service (székhelyszolgáltatás) agreement.
Where a foreign legal entity, or a foreign individual without a Hungarian residence, is named in the registration application, a delivery agent (kézbesítési megbízott) must be designated to receive official documents. The delivery agent may be an organisation with its seat in Hungary or an individual permanently resident in Hungary, but not a member, executive officer or supervisory board member of the company.
We help arrange the registered seat address, the delivery agent appointment and the related documents required for registration.
Taxation Overview
Corporate Income Tax
A flat 9% rate applies to the taxable profit of Hungarian companies. In certain cases, a minimum tax base equal to 2% of total revenue may apply.
Local Business Tax
Municipalities levy local business tax at a rate of up to 2% of adjusted net turnover. It is deductible for corporate income tax purposes.
Value-Added Tax
The standard VAT rate is 27%. Reduced rates of 18% and 5% apply to specific goods and services.
Withholding Tax and Other Charges
No withholding tax applies to dividends, interest and royalties paid to companies. Employers pay a 13% social contribution tax, and companies other than micro and small enterprises pay a 0.3% innovation contribution.
Accounting and Tax Reporting
Hungarian companies must keep accounting records under the Accounting Act and meet regular filing deadlines with the National Tax and Customs Administration (NAV).
- The annual report is deposited and published electronically by the last day of the fifth month after the balance sheet date (31 May for a calendar financial year);
- The corporate income tax return and the final tax payment are due by the same deadline;
- Corporate income tax advances are generally paid quarterly, or monthly where the tax payable exceeds HUF 20 million;
- VAT returns are filed electronically with NAV at the frequency that applies to the company;
- Employer taxes and contributions are reported on the monthly ’08 return and paid by the 12th of the following month.
Our accounting team handles bookkeeping, tax returns, the annual report and ongoing communication with NAV.
Employment and Payroll
Hungarian companies can hire staff locally. The employer registers each new employee with NAV before work starts, at the latest on the first day of employment, and reports payroll taxes and contributions every month.
- The minimum wage in 2026 is HUF 322,800 per month, and the guaranteed wage minimum for jobs requiring at least secondary education is HUF 373,200;
- Employers pay a 13% social contribution tax on gross wages;
- Employees pay an 18.5% social security contribution and 15% personal income tax, withheld through payroll;
- The end of an employment relationship is reported to NAV within 8 days, unless it is shown on the ’08 return.
We support employee registration, employment contracts, monthly payroll and reporting, so that your team is hired and paid in line with Hungarian rules.
Hungary is particularly well suited for:
Key Advantages
- Membership of the European Union
- Access to the European Single Market
- Flat 9% corporate income tax rate
- No withholding tax on dividends, interest and royalties paid to companies
- Electronic company registration, from 1 working day in the simplified procedure
Important Considerations
- the mandatory involvement of an attorney in company registry filings
- a registered seat in Hungary and, where required, a delivery agent
- local business tax in the chosen municipality
- statutory accounting, the annual report and regular NAV filings
- banks’ KYC and due diligence requirements when opening corporate accounts
The Incorporation Process
01
Initial Consultation
02
Assessment of Your Business Model
03
Selection of the Appropriate Corporate Structure
04
Preparation of Incorporation Documents
05
Company Registration
06
Issuance of Corporate Documents
After registration, we can assist with VAT registration, opening a corporate bank account, accounting, payroll and ongoing corporate support.
Required Documents
Depending on the nature of the project, the following documents may be required:
- Identification documents;
- Proof of residential address;
- Information about the intended business activities;
- Details of founders, members and executive officers;
- Details of the beneficial owners;
- Documents confirming the right to use the registered seat;
- Any additional documentation required under Hungarian legislation.
What's Next: Banking & Compliance
Frequently Asked Questions
Yes. Foreign individuals and legal entities may establish and own Hungarian companies. The registration is filed electronically by an attorney, who represents the founders before the Court of Company Registration.
Yes. Every Hungarian company must have a registered seat in Hungary. It may be a property the company owns or is entitled to use, or an address provided under a registered seat service agreement.
A delivery agent receives official documents on behalf of a foreign legal entity, or a foreign individual without a Hungarian residence, named in the registration application. It may be an organisation with its seat in Hungary or an individual permanently resident in Hungary.
Yes. Hungarian companies must keep accounting records, file tax returns with NAV and deposit their annual report electronically, by 31 May for a calendar financial year.
Yes. The employer registers each employee with NAV before work starts and reports payroll taxes and contributions monthly. The minimum wage in 2026 is HUF 322,800 per month.
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Start with a Consultation
Our team will assess your business needs, advise on the most suitable corporate structure, prepare the required documentation and coordinate registration, the registered office, accounting, payroll and banking.
Schedule a consultation today and take the first step towards establishing your company in Hungary.