The Hungarian Civil Code defines 6 legal forms for registering an enterprise in Hungary:
- an LLC (Kft.);
- a JSC, privately founded (Zrt.);
- a JSC, publicly founded (Nyrt.);
- an LLP (Bt.);
- a Full Partnership (Kkt.);
- a branch.
Setting up an LLC in Hungary
- A pre-defined starting capital is 3,000,000 forints.
- The liability of founders is limited to an initial investment. Members do not bear any other responsibility for liabilities of an enterprise.
- Securities cannot be issued in connection with business quotas.
- It is an LLC with one member.
Opening a Hungarian JSCForms of JSC:
- an initial capital of the PLC is 5,000,000 forints, the capital of an LLC is 20,000,000 forints. Members’ liability is limited by their contribution to a capital.
- An Open JSC is suitable for large enterprises with several investors.
A PLC in Hungary can later be transformed into an LLC.Shares are divided into:
- employee shares;
- interest shares;
Establishing a Hungarian LLPRegistering a Hungarian LLP, you need at least 2 partners. A general partner has an unlimited liability. A profit is distributed in accordance with the contributed capital.
To set up a Full Partnership in Hungary
- Liabilities of its partners are unlimited.
- No requirements for a min. capital.
- At least 2 members are required. Minors and those, who are responsible in another company, cannot be founders of a Full Partnership.
To open a branch in Hungary
- Enterprises may engage in entrepreneurial activities, but some activities require obtaining a license in Hungary from a competent authority.
- Companies can be established by both individuals/legal entities, both residents/non-residents.
Requirements for registering a Hungarian enterprise:
- a unique name;
- a local office;
- data of company members with addresses, personal tax numbers;
- a business activity of the company;
- an amount of fixed capital and a source of income;
- data on company employees.
When established by a foreigner, it is necessary to provide an extract from the Register no older than 3 months and its certified translation into Hungarian.
Qualified experts of YB Case will provide recommendations on registering a legal entity by foreign entrepreneurs in Hungary.
- A meeting of shareholders is a prerequisite for a Full Partnership.
- The supreme body:
- for LLC - the Meeting of participants (they are entitled to receive dividends in proportion to quotas);
- for JSC - a General meeting (the executive body of the JSC is a Board of directors).
A taxationA corporate tax is 9%.
State fees applying for various legal forms:
- a state registration fee for PLC is 50,000 forints for simplified electronic filing of applications, 100,000 forints for standard electronic registration;
- opening a Hungarian LLC, Full Partnership, LP is exempt from paying a state duty.