Entity Formation in Hungary

Ready for a permanent Hungarian presence? We help you incorporate the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest timing

What incorporating in Hungary means

A Kft. (korlátolt felelősségű társaság, limited liability company) is the standard vehicle for a permanent business presence, formed by a lawyer-countersigned deed of foundation and Company Register entry. Larger operations sometimes use a Zrt. (private joint-stock company, minimum capital HUF 5,000,000). When you form one, you become the legal employer and operator in Hungary, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your own company

Your own Kft. makes you the legal employer and operator in Hungary, with full control of employment terms and a local brand presence.

02

Lower cost at scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup takes time

Incorporation is quick by regional standards, often a matter of days once the deed and capital are ready, but you cannot employ anyone until Company Register entry completes and a business bank account is open. Timing the move matters, which is why many companies bridge with an EOR first.

How incorporating in Hungary works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm incorporation is right for you, then prepare the deed of foundation, run the company-name availability check, and arrange your registered Hungarian office address (székhely).

02 — Capital & notarisation

The deed of foundation must be countersigned by a lawyer (ügyvéd), or executed as a notarial deed, as required by law. Minimum share capital is HUF 3,000,000, with each member’s contribution at least HUF 100,000; the full-payment deadline is set in the deed itself, with a statutory backstop of three months after the financial statement for the company’s second full business year is accepted.

03 — Register the company

The company is entered in the Company Register via the cégbíróság (Company Registration Court), usually within one working day under the simplified template procedure. NAV issues the company’s tax number (adószám) as part of the same filing, and the same number doubles as its social-contribution registration, so you can operate and employ compliantly without a separate registration step.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What incorporating in Hungary costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. Hungary’s formation cost is low, the standard Kft. filing has been fee-free since 2017; the real commitment is the ongoing compliance. We give you a clear figure before you commit.

Share capital & formation

Minimum share capital for a Kft. is HUF 3,000,000 (each member’s contribution at least HUF 100,000). The Company Register filing fee for the standard simplified procedure has been fee-free since 16 March 2017; legal fees for the deed of foundation apply regardless.

Corporate tax

A flat 9% on the positive tax base, the lowest headline corporate tax rate in the EU, unchanged since 2017.

VAT

Standard VAT is 27%, the highest rate in the EU, with reduced rates of 18% and 5% on specific goods and services. A small-business exemption applies below HUF 20,000,000 annual domestic turnover for 2026 (rising to HUF 22,000,000 in 2027 and HUF 24,000,000 in 2028); non-resident businesses have no minimum threshold.

Ongoing obligations

Accounting, monthly payroll (income tax, szocho, and social security), VAT and corporate tax filings, and annual financial statements filed by 31 May each year, all of which we can manage for you.

Why form your Hungarian company through Bradford Jacobs

Why companies incorporate in Hungary through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your company runs, not just exists.

  • Beyond registration
  • Ongoing compliance
  • One team throughout

The right specialists, in place

Lawyer, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

Two decades of formations

Two decades forming and running entities across global markets, with the local knowledge to keep you compliant and out of the common traps.

  • Incorporations
  • Legal & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your company operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The incorporation trap nobody flags

A growing business hits a good quarter and someone says, let us just set up a proper Hungarian company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin. Reality: incorporation itself can be quick under the simplified template procedure, but a registered Hungarian office (székhely), a lawyer-countersigned deed, and NAV registration for tax and social contributions all apply, and you cannot legally employ anyone or open a bank account until those registrations are live.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a company needs a shareholder resolution, creditor notification, and a winding-up period. And once it exists, the obligations do not stop: annual financial statements due every 31 May, monthly payroll filings to NAV, corporate tax and VAT returns, and, from 1 January 2025, a statutory audit for entities whose average net sales exceed HUF 600,000,000 and average headcount exceeds 50. None of this is a reason not to incorporate. It is a reason to do it at the right time, with the right partners already in place.

What we handle for your company

Beyond incorporation, we can run the full back office for your company.

Compliant payroll

Compliant Hungarian payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax, szocho, and social security calculated, withheld, and filed with NAV each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on incorporating and running a company in Hungary.

How long does it take to incorporate in Hungary?

Often a matter of days once the deed of foundation, share capital, and registered address are ready, using the simplified template procedure at the cégbíróság (Company Registration Court). You cannot legally employ anyone until registration completes and a bank account is open, which is why timing matters and why many companies bridge with an EOR first.

HUF 3,000,000, with each member’s contribution at least HUF 100,000. The standard Company Register filing has been fee-free since 2017. The real cost is the ongoing accounting and compliance, which we can run for you.

Yes. There is no residency or citizenship requirement for shareholders or the managing director (ügyvezető); a non-EU, non-resident individual can be sole shareholder and sole managing director, managing remotely. The main practical friction is opening a Hungarian bank account, not the registration itself. You will need a registered Hungarian office (székhely), which we arrange.

Incorporate when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (income tax, szocho, and social security), corporate tax and VAT filings, and annual financial statements due every 31 May (plus a statutory audit if average net sales exceed HUF 600,000,000 and average headcount exceeds 50). We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Hungarian company operates smoothly from day one without hiring locally for back office.

Ready to form your company in Hungary?

Tell us your plans for Hungary and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified July 2026 (NAV, the Hungarian Company Register, PwC). Figures change; we confirm the current position when we scope your formation.