Hungary

Company registration in Hungary is a low-friction entry into the European Union — an EU substance vehicle carrying the lowest headline corporate-tax rate in the bloc. Available forms include the limited liability company (Kft.), the private joint-stock company (Zrt.), branches of foreign firms and partnerships, with full foreign ownership and no local-partner requirement.

The jurisdiction suits operating businesses, holding structures and founders building EU substance, with Budapest positioned as a logistics and finance node between Western and Eastern Europe and a qualified, multilingual workforce on hand. Formation also opens a direct route to business residency for the director, with renewal pathways into longer-term EU residence.

• Local business tax — up to 2% of revenue, set by the municipality
• Registration timeline — from 1 month

Lowest Corporate Tax in the EU

A flat corporate rate materially below the EU average — attractive for holdings, IP companies and operating entities seeking efficiency without leaving the bloc.

Full EU Market Access

Single-market trade in goods and services across 27 member states, with participation in EU contracting, programmes and protected investor frameworks.

Direct Route to Business Residency

Company directors qualify for a renewable residence permit, with access to public healthcare, state schools for dependants and full mobility within the Schengen Area.

Strong Tax Treaty Network

Bilateral double-taxation agreements including the United States, United Kingdom, Switzerland and most major Asian and Gulf jurisdictions.

Holding-Company Friendly

Participation exemption on qualifying dividends and capital gains, suited to international holding structures.

EU-Scaling Operators

Operating businesses that need an EU-resident entity to sell into the single market.

Holding-Company Architects

Owners who build holding chains around the participation exemption and broad treaty access.

Relocating Founders

Founders moving with dependants who need EU schooling and public healthcare access.

IP-Heavy Companies

Businesses whose margin sits in intellectual property and follows the lowest EU corporate rate.

Limited Liability Company (Kft.)

The most common form for SMEs and operating businesses. Members’ liability is limited to their capital contribution.

• Minimum capital — EUR 7,700 (HUF 3,000,000); 50% paid at registration, balance within one year.
• 100% foreign ownership — No local-partner required.
• Flexible governance — Single managing director permitted; meetings may be held remotely.
• Limited liability — Members’ liability capped at their contribution.

Private Joint-Stock Company (Zrt.)

Suitable for larger operating businesses or those planning institutional capital raises.

• Minimum capital — EUR 13,000 (HUF 5,000,000).
• Board structure — Board of directors plus supervisory board where required.
• Investor friendly — Common form for venture-funded scale-ups.
• Audit threshold — Statutory audit required above defined revenue or balance-sheet thresholds.

Branch of a Foreign Company

A representation of a non-Hungarian entity without separate legal personality.

• No share capital — Branch operates on the parent’s balance sheet.
• Tax substance — Branch profits taxable in Hungary at the standard 9% corporate rate.
• Operational continuity — Permits trading under the parent’s name and brand.
• Reduced complexity — Simplified registration vs incorporating a new entity.

Partnerships (Bt., Kkt.)

Limited and unlimited partnerships, used in select professional and family-business contexts.

• No minimum capital — Capital contribution flexible by partnership agreement.
• Flexible governance — Partnership agreement governs decision-making.
• Niche use cases — Professional services or local family ventures.
• Tax treatment — Depends on partnership type.

Mirsatori service price

From EUR 8,000 — suited to EU-substance founders, holding companies, and operating businesses scaling into the EU.

What the package includes

• Founding documents (memorandum, articles, members’ resolutions)
• Registered legal address and corporate secretarial services
• Filing with the Hungarian Court of Registration
• Tax and VAT registration where applicable
• Corporate bank account introduction and onboarding support
• Director’s residence-permit application and supporting documentation
• Health insurance enrolment for the director and dependents
• Ongoing compliance: bookkeeping, tax filings, statutory reporting

Key financial parameters

• Corporate tax — 9%
• Dividend tax — 15%
• VAT (standard) — 27%
• VAT (reduced) — 5% / 18%
• Local business tax — up to 2% of revenue
• Kft. minimum capital — EUR 7,700 (50% at registration)
• Zrt. minimum capital — EUR 13,000
• Branch minimum capital — none

Founder and director identification

Passports for all founders and directors, apostilled for non-EU founders.

Proof of address

Utility bill or bank statement no older than three months.

Founding documents

Founding documents and articles of association.

Registered legal address

A registered legal address in Hungary.

Tax representative

A tax representative is required for foreign founders.

Director income threshold

Minimum company income of EUR 1,500 per month for the director, for residence-permit eligibility.

Document legalisation

Foreign documents require Hungarian translation and notarisation.

1. Strategic Consultation and Structure Design

Mirsatori’s corporate lawyers review your activity, operating jurisdictions and tax-residency clock to recommend the optimal form: Kft., Zrt. or branch.

2. Name Reservation and Drafting

We clear the name with the Court of Registration and prepare the founding pack, including the deed of foundation and director-appointment forms.

3. Capital Deposit and Legal Address

We coordinate the share-capital deposit at a Hungarian bank, secure the registered legal address and prepare the apostille and translation set.

4. Registration with the Court of Registration

We file the application and obtain the registration certificate, tax number and statistical number, with VAT registration where applicable.

5. Banking and Residence Permit

We open the corporate account, run the director’s business residence-permit application and enrol the director and dependants in Hungarian healthcare.