Company registration in Hungary

General information

Hungarian Kingdom reached the peak of the greatness in the thousandth year AD, gaining power over the territory of Slovakia, Croatia and Transylvania. Hungary gradually began to lose power, survived the Mongol invasion, the Turkish yoke, and in 1867 became part of the Austro-Hungarian Empire. After the First World War, Hungary existed as the Hungarian Soviet Republic, then as the Hungarian Kingdom. Second World War Hungary fought on the German side. After the collapse of the Third Reich, Hungary became part of the Eastern bloc, and in 1989 became a parliamentary republic.

At present, Hungary is the member of European Union, the OECD and the WTO. The private sector brings up to 80% of GDP, and the main economic activities are agriculture, production of pharmaceutical, metallurgical, mining and construction materials.

The most common business entities

The most popular type of business registration is a limited liability company (LLC)

Corporate legislation

In Hungary there is a continental system of law, including EU law.

Registered capital

A minimum amount of capital is 3 million HUF. Half of the amount must be paid before registration.

The main requirements for the directors and shareholders

In Hungary, the LLC must have at least one director and one shareholder, without any specific requirements, information about them is stored in a public register.

Disclosure of the company’s beneficial to the government bodies

Information on beneficiaries is disclosed only by a court decision.

Taxation

Main tax is corporate and personal income taxes. There are also a great number of local taxes and levies.

Income tax is paid on income earned in the world for resident companies and from income earned in the territory of Hungary for non-resident companies. All companies must submit a tax return

Accounting

All companies must keep accounting records and submit annual returns..

For more information, please contact us.