Company Formation in Hungary | Regulation for a Limited Liability Company (Kft)

Company Formation in Hungary Key Points

  • It takes only two weeks for company formation in Hungary
  • One director is sufficient for successful incorporation of the company and there is no restriction on the nationality of the director.
  • One shareholder is sufficient for the successful incorporation of the company and there is not restriction on the nationality of the shareholder.
  • The initial share capital required for company formation in Hungary is 1,600 Euros
  • Hungary offers a great tax haven for the foreign investors
  • Instant registration for the VAT number for initiating trading business with EU Member States free of VAT

To begin company formation in Hungary we will require the following:

  • The name of your company
  • Complete details of the directors of the company including the name, nationality, birth date, and residential address
  • Complete details of name and address of shareholders of the company

Documents you are required to provide:

  • ID proof which are accepted are copy of valid passport, national ID card, and driving license with photo.
  • Accepted documents for the address proof are utility bills like gas invoice or electricity bill, credit/debit card bank statement which is not older than three months at the time of submission.
  • If the shareholder of the company are is a legal entity then the documents will have to be notarized and certified by authority.

Legal Form of Company Formation in Hungary

In order to perform business in Hungary there are 6 types of business setups as per the Company Act formed in July 2006. Foreign investors and companies can choose any of the following to incorporate their company in Hungary:

  • Unlimited Partnership (Kkt.),
  • Limited Partnership (Bt.),
  • Limited Liability Company (Kft.),
  • Company Limited by Shares (Rt.)
  • Privately found Companies (Zrt.)/ Publicly Found Company (Nyrt.),
  • Association (egyesülés).

The companies which are incorporated in Hungary are governed by the law and they can acquire assets, properties, conclude contracts, file lawsuits, etc. Single individual can also form a Joint Stock Company (JSC) or KFT company in Hungary

Company Name

As per the standard norms, it is mandatory that the name of company that is formed in Hungary ends with the title “Kft.”. The name of the company should be approved by the court of registry.


  • There is no restriction on the nationality and local residency of the shareholders
  • One shareholder is sufficient for successful company formation in Hungary
  • . The individual who is the shareholder can also be the director of the company.
  • There is no defined maximum limit for the number of shareholders for a company in Hungary.
  • The shareholder of the company can be an individual or a legal entity.


In order to take major decisions of the company, be it amend the Article of Association or relieving the managing director, 75% of the majority of quota holders is required.

Registered Office

A local office address and authorized agent is needed but it is not mandatory requirement for the incorporation of the company in Hungary.

Share Capital requirements

For private limited company. The minimum liability is based on the least paid up capital set at HUF 500,000.

Memorandum and Article of Association

For company formation in Hungary,it is mandatory that the articles of association is created and it should be made by licensed law practitioner. The articles of association should be signed by all the members of the company or the authorised agents of the company. It should also be counter signed by the lawyer or authorized public notary. The details mentioned in the Articles of Association are:

  • Full name of the company
  • Registered office address
  • Name of the members of the company and their addresses
  • Business activities of the company
  • Capital amount of the business
  • Registration method of the company
  • Full name and addresses details of the officers of the company
  • Time period of the company, if it is established for specific time

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