Hungary

General Information

Area – 93,036 sq. km

Population – 9,897 million people

Capital – Budapest

Official language – Hungarian

Official currency – Hungarian Forint (HUF)

Key Aspects

Information about the beneficiaries is disclosed only in case of judicial proceedings.

Company Type

In terms of incorporation, a Limited Liability Company (LLC) is the most popular legal structure.

Corporate Legislation

Hungary’s legal system is continental including the laws of the European Union.

Main Requirements for Company Directors and Shareholders

In a Hungarian LLC there must be at least one director and one shareholder; there are no special requirements for them; information is kept in public registers.

Authorised Capital

The minimum authorised capital is 3 million Hungarian forints (approx. EUR 9,800). Half of the amount is to be paid up before a company is incorporated.

Accounting

All companies must keep accounting records and file financial accounts.

A Hungarian company must have at least one account in Hungary, and presence in Hungary is required.

Taxation

Value added tax – 27%

Corporate tax – 10% and 19%

The corporate income tax is the basic tax. Resident companies pay corporate tax on their global revenues, whereas non-resident companies – on their revenues gained on the territory of Hungary. All companies must file tax declarations. The corporate tax rate is 10% for the companies whose annual profit does not exceed 500 million Hungarian forints (approx. EUR 1.61 million) and 19% – for the rest.

Questions that need to be answered to prepare incorporation documents

∙ Passport details of the founders

∙ Passport details of the directors

∙ Photocopy of the ID pages of the founders’ and director’s international passports

∙ Types of the firm’s activity

∙ Utility Bill of the directors and founders, current email addresses and phone numbers

∙ Several proposed firm names