Company Registration in Hungary
                     
COMPANY 
REGISTRATION 
IN HUNGARY
BY- HARSHIT SHARMA
IMPORTANT FACTS ABOUT 
HUNGARY

STARTING UP IN HUNGARY
 The primary act of law in Hungarian company law is Act 4 of 2006 on Business 
Associations (Companies Act). The procedures on founding, implementing changes 
in data and winding up of Hungarian associations are primarily governed by Act V of 
2006 on Public Company Information, Company Registration and Winding-up 
Proceedings (Company Procedures Act).
 Under the Companies Act, business associations may be founded by non-resident 
and resident natural persons, legal persons and business associations without legal 
personality. International treaties may contain regulations in derogation from these 
provisions in respect of the participation of non-residents in Hungarian business 
associations.
AUTHORITY GOVERNING 
COMPANY REGISTRATION IN 
HUNGARY
The law may require a special permit from the authority for the foundation of 
a business association (foundation permit), such as, for instance, companies 
with an interest in financing, insurance or capital market activities, which 
may only be founded with approval from the Hungarian Financial 
Supervisory Authority (PSZÁF).
MAIN FEATURES FOR 
SETTING UP A HUNGARIAN 
COMPANY
• Company income tax (CIT) has two rates: 10% 
on up to €1.8 Million of profits, and 19% on 
profits above.
• Being a full member of the EU, dividends received from EU companies are not subject to CIT, and there 
is absolutely no withholding tax imposed on dividends paid by Hungarian companies to their overseas 
parent company
• Hungary company formation is not 
perceived as an offshore corporate 
structure in a tax haven
• Only one shareholder 
and one director is 
required
• Corporate 
shareholders are 
permitted
• Investors considering Hungary company formation can take 
advantage of the double taxation treaties the country has signed 
with other states
• Details of the beneficial owner of the 
company are not available for public 
viewing
• Can be fully owned and controlled 
by international directors and 
shareholders

PROCESS FOR COMPANY 
REGISTRATION IN HUNGARY
Registration Registration Data 
Preparation Opening of with with 
of Corporate Bank Hungarian Hungarian 
Provision on 
Documents Account Court of Tax 
Employees 
Registry Authority 
to Tax 
etc. Authority
STEP-1: PREPARATION OF CORPORATE 
DOCUMENTS BY A HUNGARIAN 
ATTORNEY-AT-LAW
STEP-2: OPENING OF BANK 
ACCOUNT
STEP-3: REGISTERING THE COMPANY AT THE 
HUNGARIAN COURT OF REGISTRY AND 
OBTAINING A TAX IDENTIFICATION NUMBER.
REQUIRED DOCUMENTS
•Instrument of constitution on a standard form
•Declaration to the Tax Authority to get the company a tax number
•Authorizations of the legal representative (the counsel), or the certification of the right for 
representation
•Certificate of payment of administration fees and fee of disclosure
•List of members
•Declaration of the CEO not to be subject to forbidding according to Gt. 23.§ Certificate of the 
payment service provider for depositing the contribution in cash, 
•Declaration of the CEO for giving free run of contribution in-kind as well as the assessment 
declaration of the members concerning the contribution in-kind.

STEP-4: REGISTRATION 
WITH OTHER HUNGARIAN 
AUTHORITIES
 Taxpayers who are required to register their company are also required at the same 
time to report to the state tax authority within 15 days of the submission of the 
company registration application with regard to information that does not appear in 
the application for company registration. Similarly, all taxpayers have an obligation 
to report to the local tax authorities, within 15 days of the commencement of 
activities there by the taxpayer (e.g. with regard to local business taxes).
 Pursuant to the Decree Implementing the Act on Social Security Pension Provision, 
the obligation to provide information relating to the NYENYI (Individual Pension 
Insurance Record) form may also be fulfilled through electronic administration. The 
obligation to provide information relating to the Individual Pension Insurance Record 
Form may be fulfilled using the e-NYENYI service of the Central Administration of 
National Pension Insurance.
STEP-5: DATA PROVISION ON 
EMPLOYEES TO THE TAX AUTHORITY
Once they have registered at the Client 
Gateway, employers are obliged to submit 
electronically on the Government 
Portal the data stipulated by law relating to 
their employees, on the form drawn up for this 
purpose, for the competent State tax authority 
of first instance, by no later than the first 
day of the legal insurance relationship 
prior to commencement of employment.
IMPORTANT LINKS AND 
FORMS FOR COMPANY 
REGISTRATION IN HUNGARY
 Reporting the commencement of activities as a sole trader
 Electronic company registration
 Information on electronic company procedures
 Ministry of Public Administration and Justice, and the Company information and Ele
ctronic Company Registration Service
 Online company information service
 Advising of new and terminated employment relationships
 Provision of information relating to the individual pension insurance record form
 Premises license