Company Formation in Hungary

Hungary is the only one of the six inside the European Union. A Kft is the standard vehicle — the cheapest, simplest and quickest way to hold a legal entity there. We work with a partner law firm in Budapest, because Hungarian law requires an attorney to form a company; it is not something that can be filed alone.

What IS Group handles

We form the Kft through our Budapest partner, arrange the registered office and the agent for service, put the accounting in place, and prepare the business residence permit application for non-EU founders.

The whole formation runs in about a week and a half to two weeks, and can be completed remotely over Zoom without you travelling to Budapest.

Two things we will not claim: we do not open your bank account, and there is no nominee director in Hungary. Both are explained below, because both catch people out.

Planning a company in Hungary?

Tell us your nationality and whether you intend to live in Hungary. For an EU citizen this is straightforward; for everyone else the residence permit is the real question.

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Two things Hungary does not allow

There is no nominee director service in Hungary. Unlike Ukraine, where a resident can temporarily hold the directorship, this simply does not exist here. Whoever is named as director is the director, from day one, in their own name.

The bank account is yours to open, not ours. Hungarian banks run their own KYC on the director, and an application is far more likely to succeed when the director completes it personally. Anyone offering to open a Hungarian bank account on your behalf is promising something they cannot reliably deliver.

Two ways in

A new company formed from scratch in your name, or a ready-made company — an existing Hungarian Kft, already registered and already holding an EU tax number, transferred to you. The company name and the main activity code can be changed to suit you.

A ready-made company is quicker and, importantly, some come with a bank account already open — which sidesteps the hardest part of the whole process. The trade-off is that you are taking on an existing entity with an existing filing history, so it must be checked properly before transfer. Ask us which is right for your case; we will not push you towards either.

How the formation actually runs

  1. Settle the service fee. Nothing starts until it is paid. That applies whether you sign in Budapest or remotely.
  2. Complete the questionnaire — your personal details and, where a parent company is involved, its details too. This is what the legal documents are drafted from.
  3. The legal documents are drafted from your answers and sent to you as PDFs.
  4. Print and sign in blue ink. Blue, specifically, so an original can be told from a copy.
  5. Scan and send the signed set back for checking before you post anything. Every signature is verified first, because a single missed one means starting the post round again.
  6. Post the originals by mail or courier. Scans alone will not do.
  7. Video verification once the originals arrive — identity and documents are checked on the call.
  8. Submission to the Registry, normally accepted within a couple of days.
  9. Pay in the share capital — HUF 3,000,000. You declare when, and you have up to two years.
  10. Open the bank account yourself, with the director completing the bank's KYC.

In person in Budapest: 2 to 3 days. Remotely: about one to two weeks, most of which is the post.

What you must provide

The formation cannot start until all eight are in hand. Two of them surprise people, so gather those first.

  1. A colour copy of the beneficial owner's or director's ID card or passport.
  2. Proof of address — a utility bill or bank statement no older than three months.
  3. The beneficial owner's or director's mother's full maiden name.
  4. The beneficial owner's or director's personal tax number.
  5. Three proposed company names, in order of preference.
  6. A short description of the planned activity.
  7. An email address for the company.
  8. A statement of when you will pay the HUF 3,000,000 share capital into the company account.

The facts

EntityKft (limited liability company)
Foreign ownershipPermitted in full, including non-EU nationals
Share capitalHUF 3,000,000, about EUR 7,500
Capital deadlineUp to 2 years from formation
Corporate profit tax9 per cent
Local government tax2 per cent
Formation time2–3 days in person · 1–2 weeks remotely
Ready-made companyAvailable, sometimes with a bank account already open
AttorneyLegally mandatory
Registered officeCompulsory, provided as an annual service
Agent for serviceCompulsory, provided as an annual service
SigningRemotely over Zoom, or in person in Budapest
Nominee directorDoes not exist in Hungary
Bank accountOpened by the director in person
EU marketYes — the only EU jurisdiction of the six

Hungary has recurring costs, not just a setup fee

This is the part people budget wrongly. A Kft carries compulsory ongoing services, not a one-off charge: a registered office or virtual office address, an agent for service where the officers live abroad, and accounting, which covers all filings and registrations. Accounting is billed monthly, usually with several months paid in advance.

So the number that matters is not the incorporation fee — it is the first full year. Ask us for both, and ask whether VAT is on top; Hungarian VAT is 27 per cent and quotes are not always stated the same way. We will give you one total for your case, and a discount is normally available where the services are taken together and the first year is paid in advance.

Residence permit for non-EU founders

EU and EEA citizens need no permit to own or run a Hungarian company. Everyone else does, and it is granted on the business, not on an investment sum.

Permit typeBusiness residence permit
BasisA genuine Hungarian company and real activity
Investment thresholdNone — Hungary tests income, not capital
Income expectationAround EUR 1,500 per month to support yourself
White CardNot compatible with owning a Hungarian company
EU nationalsNo permit required

The White Card will not work for this

Hungary's White Card, its digital nomad permit, is widely recommended online as an easy way into the EU. It is the wrong instrument here.

A White Card holder may not pursue gainful activity in Hungary and may not hold a share in a Hungarian company. It is for people earning from abroad. To own a Kft you need a business residence permit instead — a different application on different evidence.

Hungary rewards a real business, not a shell

Because no investment sum buys your way in, the permit turns on whether the company genuinely trades and whether it supports you. A dormant Kft with a registered address and no revenue is the weakest possible application — and it still carries the full annual cost of the office, the agent and the accounting. If your plan is a real operating business with EU customers, Hungary is the strongest of the six. If it is a paper company, it is the most expensive way to own one.

Rules change. Ask us before you assume.

Capital requirements, tax rates, permit categories and service fees are set by government and by the market, and can change at any time. The only answer that counts is the one for your nationality, your business and your circumstances.

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