Main rules of company formation

Company formation and registry procedures require the legal assistance of solicitors in Hungary. A company may be incorporated on a template document, supplied by law (simple procedure), or, on a founding document modified by a solicitor (traditional procedure). In case a company with foreign seat wishes to create a branch in Hungary, it also has to be registered based on the legislation on incorporation.

Solicitors active in Baranya county are members of the local Chamber of Solicitors (website available only in Hungarian).

Hungarian companies without legal personality are general partnerships (kkt.) and limited partnerships (bt.). Companies having legal personality are limited liability companies (kft.) and limited companies (rt.) that can be either a public (nyrt.) or private (zrt.) limited company depending on whether the stocks are publicly available on the market or not.

The registration of companies is carried out by the commercial court. Throughout the registration process a legal representative is obligatory, so founders of the company have to look for a law firm that will act as a representative before the commercial court. Within the activities defined in the articles of association, the company may carry out any economic activity – as main or other activity -, declared to the tax authority.

5 days after incorporation the company has to be registered with the local chamber of commerce and industry (in case of agricultural activity with the National Chamber of Agriculture).

Companies carrying out construction activities also have to register with the construction registration office of the Hungarian Chamber of Commerce and Industry (website available only in Hungarian).

Further information

Subsidies, benefits

Businesses in Hungary, with at least one full financial year closed, may apply for state aids for the realisation of their development plans under the Széchenyi 2020 Plan. These aids usually amount for 40-50% of the development costs. In case of new investments, depending on the project value and size of the planned direct and indirect employment, individual government aids may be made available.

Company formation
 type of procedurelimited partnershiplimited companyprivate limited company
solicitor’s feesimplifiedapprox. 35 000 Ftapprox. 40 000 Ftapprox. 100 000 Ft
conventionalapprox. 40 000 Ftapprox. 50 000 Ftapprox. 120 000 Ft
registration levysimplified25 000 Ft50 000 Ft50 000 Ft
conventional50 000 Ft100 000 Ft100 000 Ft
publication payment feesimplified0 Ft0 Ft0 Ft
conventional3 000 Ft3 000 Ft3 000 Ft
share capital (minimum)*none3 000 000 Ft5 000 000 Ft
financial and/or non-financialfinancial and/or non-financial
VATtax free 
5%books, newspapers, magazines
18%basic food, accommodation
27%in general
Taxes relative to wages
social support tax13%based on gross wage
For your information
guaranteed minimum wage200 000 Ft/month
professional minimum wage260 000 Ft/month
Taxes payable by companies
corporation tax9%if tax base is positive, available reductions are up to 80 % of the tax payable
small taxpayers’ itemized lump sump tax (KATA)25/50/75 000 Ft/monthssubject to special conditions, maximum 12 000 000 revenue/year
small business tax (KIVA)10%subject to special conditions
dividend taxminimum 13%subject to special conditions
company car tax7.700 – 44.000 Ftbased on engine power (kW) and environmental class of vehicle
local business tax**maximum 2%based on corrected net turnover
vehicle tax**140 – 345 Ft/kWbased on engine power (kW) of vehicle
property tax**850-1700 Ft/m2based on useful base area
land tax**0-280 Ft/m2based on area not built on
** these maximum amounts are determined by the local governments


Chamber of Commerce and Industry of Pécs-Baranya
H-7625 Pécs, Majorossy I. 36.
Phone: +36 72 507 149

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