Hungary: registering a company and opening a corporate account in 2020

Hungary: registering a company and opening a corporate account in 2020

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 JSC

Forms 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:

  • ordinary;
  • employee shares;
  • interest shares;
  • redeemed;
  • privileged.
Establishing a Hungarian LLP

Registering 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.

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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.

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Qualified experts of YB Case will provide recommendations on registering a legal entity by foreign entrepreneurs in Hungary.

  1. A meeting of shareholders is a prerequisite for a Full Partnership.
  2. 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 taxation

A 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.
Opening a bank account in Hungary

Request for personal advice on opening an account with a bank in Hungary with a personal presence (is a required condition) from YB Case specialists, and you will also receive recommendations in selecting a banking structure in this jurisdiction.

How to register a Hungarian enterprise remotely?

If you decide to set up a company in Hungary or open a corporate account in Hungary, experienced YB Case team will provide full support in registering a business in Hungary.

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