All the relevant information you need to know about starting your business in Hungary is available on the e-government portal operated by the Ministry of Interior of Hungary. Here you can find detailed information and useful links that guide you through the various steps of the official procedure, including preparing the corporate documents by a Hungarian attorney-at-law; opening a bank account; registering your company at the Hungarian Court of Registry and obtaining a tax identification number; registering with the Hungarian tax authority, municipality, chamber of commerce; and data provision on employees to the tax authority. The official authorities involved in the procedure include:

National Tax and Customs Administration (NAV)
29/C Faraktár Street, Debrecen, H-4029
Chamber of Commerce and Industry of Hajdú-Bihar County (HBKIK)
13-15 Vörösmarty Street, Debrecen, H-4025

In this section you can find an overview of the available company types in Hungary. This can help you decide what type suits your company best in order to bring the most out of the Hungarian economic environment.

 

General partnership (Közkereseti Társaság – Kkt)

  • The partners of a general partnership (Kkt.) agree to make available the capital contribution required for its activities to the partnership
  • They have joint and several liability for the obligations of the general partnership (Kkt.) that are not covered by the partnership’s assets
  • There are no requirements for the initial capital
  • Establishment is free of registration fees and publication charges

Limited partnership (Betéti Társaság – Bt)

  • The partners of a limited partnership (Bt.) agree to make available the capital contribution required for its activities to the
  • There must be at least one general partner and one limited partner. General partners are jointly and severally liable for the limited partnerships obligations that are not covered by its assets. Limited partners are not liable for the obligations of the limited partnership (Bt.), unless the Civil Code (Act V of 2013) states otherwise.
  • Must be established by at least two members, one of which manages and represents the partnership and has unlimited liability, and one who is not liable personally for the partnership’s obligations
  • No minimum capital requirements
  • Establishment is free of registration fees and publication charges

Private joint stock company (Zártkörűen Működő Részvénytársaság – Zrt)

  • Founded with a share capital consisting of shares of a pre-determined number and nominal value. The shareholders’ obligations are limited to the provision of the nominal value or accounting value of their shares. The members of a private joint stock companies (Zrt.) are not liable for the private joint stock company’s obligations, unless the Civil Code provides otherwise.
  • The shares of a private joint stock company (Zrt.) cannot be listed on any stock exchange
  • Initial capital must be at least HUF 5 million (~EUR 15,000)
  • Is ideal for big enterprise

Public joint stock company (Nyilvánosan Működő Részvénytársaság – Nyrt)

  • The shares are listed on a stock exchange
  • Initial capital must be at least HUF 20 million (~EUR 60,000)
  • To create a public joint stock company (Nyrt.), a private joint stock company (Zrt.) must change its corporate form from private to public
  • The administrative requirements and disclosure obligations that apply to public joint stock companies (Nyrt.) are stricter than those applicable to private joint stock companies (Zrt.)

Limited liability company (Korlátolt Felelősségű Társaság – Kft)

  • Founded with an initial capital consisting of capital contributions of a predetermined value
  • The obligation of the members is limited to the provision of their initial capital contribution, and of other contributions set out in the memorandum of association. The members of a limited liability companies (Kft.) are not liable for the limited liability companies (Kft.) obligations unless the Civil Code states otherwise.
  • Initial capital must be at least HUF 3 million (~EUR 9,000)
  • Establishment is free of registration fees and publication charges

Branch offices

  • Branch office is an organisational unit of a foreign company
  • A branch has no legal personality, but has legal capacity to acquire rights and undertake obligations under its corporate name on behalf of the foreign parent company (e.g. it can acquire properties, conclude contracts, sue or be sued)
  • Establishing a branch is a suitable option for foreign investors intending to establish a Hungarian business presence