In Hungary, company formation and registry procedures strictly require the legal assistance of a solicitor (attorney-at-law). There are two primary pathways for incorporation:

1. Simplified Procedure: Using a statutory template document provided by law. This is faster and involves lower registration fees.
2. Traditional Procedure: Using a custom founding document drafted by a solicitor to suit specific business needs.

Foreign entities wishing to establish a Branch Office or a Representative Office in Hungary must also follow the formal registration process defined by the Act on Business Associations.

Note for Baranya County: Business owners are encouraged to consult solicitors who are active members of the Baranya County Bar Association.

Legal Forms of Business

• Without Legal Personality: General Partnership (kkt.) and Limited Partnership (bt.).
• With Legal Personality: Limited Liability Company (kft.) – The most popular choice for SMEs.
  • Private Limited Company (zrt.) – Shares are not traded publicly.
  • Public Limited Company (nyrt.) – Stocks are listed on the market.

Registration Process

Registration is handled by the Commercial Court. A legal representative is obligatory throughout the process. Once registered, a company may carry out any economic activity declared to the tax authority, provided it is within the scope of its Articles of Association.

Mandatory Registrations:

• Chamber of Commerce: Within 5 days of incorporation, the company must register with the competent local Chamber of Commerce and Industry (or the National Chamber of Agriculture for agricultural activities).
• Construction: Companies in the construction sector must also register with the Hungarian Chamber of Commerce and Industry’s construction registry.

Subsidies and Benefits

Under the Széchenyi Plan Plus (2021–2027), businesses with at least one closed financial year can apply for state and EU co-funded grants.

• Standard Aid: Usually covers 35–50% of development costs.
• Strategic Investments: For new large-scale investments, individual government subsidies (EKD) may be available based on job creation and project value.
• Green Incentives (2026): New tax allowances are available for investments in clean technology manufacturing, covering up to 35% of costs in the South Transdanubian region.

2026 Cost Summary