Creating a business in Hungary allows the founders to reach the country’s domestic market and the wider EU region.
However, it also includes a complex list of legal and administrative tasks. Identifying the specifics ahead of time will smooth out the process of company formation in Hungary and prevent possible holdups.
How Do I Set Up a Company in Hungary Step by Step? (Checklist)
1. Choose a Business Structure
Identify the legal form of the newly formed company. A Kft. (Korlátolt felelősségű társaság) is a Hungarian limited liability company and a common choice for small and medium-sized businesses. It provides limited liability while allowing flexibility in its governance. The minimum registered capital for a Kft. is HUF 3 million.
2. Choose the Company Name and Perform a Name Search
Choose a name for the future company that complies with Hungarian naming regulations. The chosen name must be distinct from any existing registered organizations. You must also designate an official registered office address.
3. Drawing up the Company Formation Deed and Other Documents
Draw up the company’s constitutional and related documents, information on shareholders, managers, and other relevant information. The range of documents changes according to the entity’s nature and activities. Cooperate with the local Hungarian attorney to get the right forms of documents.
4. Registration of a Company with the Hungarian Company Court
Register a company with a court in Hungary. The company acquires legal personality upon registration with the Hungarian Company Court. However, it may begin certain business activities before registration under