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).
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.
|type of procedure||limited partnership||limited company||private limited company|
|solicitor’s fee||simplified||approx. 35 000 Ft||approx. 40 000 Ft||approx. 100 000 Ft|
|conventional||approx. 40 000 Ft||approx. 50 000 Ft||approx. 120 000 Ft|
|registration levy||simplified||25 000 Ft||50 000 Ft||50 000 Ft|
|conventional||50 000 Ft||100 000 Ft||100 000 Ft|
|publication payment fee||simplified||0 Ft||0 Ft||0 Ft|
|conventional||3 000 Ft||3 000 Ft||3 000 Ft|
|share capital (minimum)*||none||500 000 Ft||5 000 000 Ft|
|financial and/or non-financial||financial and/or non-financial|
|5%||books, newspapers, magazines|
|18%||basic food, accommodation|
|Taxes relative to wages|
|social support tax||27%||based on gross wage|
|professional training support||1,5%||based on gross wage|
|For your information|
|guaranteed minimum wage||105 000 Ft/month|
|professional minimum wage||122 000 Ft/month|
|Taxes payable by companies|
|corporation tax||10%||if previous year’s turnover did not exceed 500 million HUF|
|19%||for the part of turnover that exceeds 500 million HUF|
|simplified entrepreneurial tax||37%||subject to special conditions|
|company car tax||7.700 – 44.000 Ft||based on engine power (kW) and environmental class of vehicle|
|local business tax**||maximum 2%||based on corrected net turnover|
|vehicle tax**||140 – 345 Ft/kW||based on engine power (kW) of vehicle|
|property tax**||850-1700 Ft/m2||based on useful base area|
|land tax**||0-280 Ft/m2||based 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.
Telefon: +36 72 507 149
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