Hungary is an increasingly popular destination for entrepreneurs and investors looking to tap into the Central European market. With a strategic location, competitive tax rates, and an educated workforce, it’s no wonder more people are exploring how to start a company in Hungary.
If you’re considering launching a business in this thriving economy, here’s a comprehensive step-by-step guide to help you navigate the process.

Why Start a Company in Hungary?
Before diving into the process, it’s worth highlighting why Hungary is attractive for business:
- Low corporate tax rate (9%) – the lowest in the EU
- Strategic location in Central Europe, ideal for accessing EU and Eastern markets
- Skilled, multilingual workforce
- Affordable operating costs compared to Western Europe
- Modern infrastructure and business-friendly regulations
Step-by-Step Guide to Start a Company in Hungary
Step 1: Choose the Right Company Structure
The most common business entity in Hungary is the Kft (Korlátolt Felelősségű Társaság), which is equivalent to a limited liability company (LLC).
Other options include:
- Rt (Zrt/Nyrt) – Private/Public limited company
- Bt – Limited partnership
- Sole proprietorship
Most foreign entrepreneurs choose a Kft due to its flexibility and protection of personal assets.
Step 2: Appoint a Legal Representative and Registered Address
To start a company in Hungary, you’ll need a registered business address in the country. This is mandatory, even for non-residents. You may also appoint a local lawyer or accountant to act as your representative.
Step 3: Prepare the Articles of Association
The Articles of Association outline key business details such as:
- Company name
- Business activities
- Registered address
- Share capital
- Shareholder information
- Managing directors
This document must be signed in front of a Hungarian lawyer or notary.
Step 4: Deposit Share Capital
For a Kft, the minimum share capital is HUF 3 million (approx. €7,500). This amount must be deposited into a Hungarian bank account opened in the company’s name.
Note: You can use the share capital to fund business activities once the company is fully registered.
Step 5: Register with the Hungarian Court of Registration
Your legal representative will submit your documents electronically to the Court of Registration. The process usually takes 1–2 business days.
Upon approval, you’ll receive your:
- Company registration number
- Tax number
- EU VAT number (if applicable)
Step 6: Open a Business Bank Account
After registration, you must open a Hungarian business bank account. This account is essential for handling operational finances, tax payments, and salaries.
Step 7: Register for Taxes and Social Security
Once your company is registered:
- Notify the Hungarian Tax Authority (NAV)
- Register for social security if you have employees
- Apply for VAT registration if required by your business model
Step 8: Start Operations
With all the legal formalities complete, you’re ready to start operating your company in Hungary. Remember to comply with:
- Accounting and reporting standards
- Local employment regulations
- Tax filing deadlines
Extra Tips for Foreign Entrepreneurs
- Work with a local accountant familiar with Hungarian business law
- Use an English-speaking service provider to help set up your company
- Consider getting a Hungarian residency permit if you plan to manage the company from within the country
Conclusion
To start a company in Hungary, you’ll need to follow a few structured steps, but the rewards can be significant. Whether you’re a small business owner or an international investor, Hungary offers a compelling gateway into the European market.
From choosing the right structure to registering your business and opening a bank account, each step moves you closer to launching a successful venture in this dynamic country.
Ready to start a company in Hungary? Take the first step today and unlock new opportunities in one of Central Europe’s most promising economies.