Choose the right name for your Hungarian business

Hungarian company name

When you set up your business in Hungary, your company will need a name which clearly identifies it and which distinguishes it from competitors. A Hungarian company name must be unique, correct, and appropriate. What does that mean? Read on to find out.

Hungarian company names

In Hungary, a company’s name follows a specific structure:

keyword + (activity in Hungarian) + full company form in Hungarian

For example: Helpers Hungary + Szolgáltató + Korlátolt Felelősségű Társaság
(meaning: Helpers Hungary + Service Provider + Limited Liability Company).

Note: The activity part is optional, which is why it is shown in brackets.

Abbreviated company names

As seen above the full name of a Hungarian company may be quite lengthy. To make daily life easier, companies are allowed to use an abbreviated form of their name on stamps, in correspondence, and even in contracts. This abbreviated name consists only of the keyword and the shortened company form, and it is indicated in the company registry next to the full name of the company.

For example: Helpers Hungary KFT

Components of a Hungarian company name

1. Keyword

The keyword is the most important part of the name, as this is what will distinguish your company from competitors. It can be anything you choose, such as your name, an abbreviation, an acronym, or a word from your native language. However, it must be spelled with letters from the Hungarian alphabet (e.g., it cannot contain Chinese characters, even if it is a Chinese name), and it most be possible to pronounce it (cannot be a random set of characters).

2. Activity

Including an activity in the company name is optional. If included, it must accurately reflect the company’s operations (e.g., if it is a web development company, you cannot call it a “construction company”). The activity must be in Hungarian. Common activities include:

  • agricultural (“mezőgazdasági”)
  • commercial (“kereskedelmi”)
  • construction (“építőipari”)
  • industrial (“ipari”)
  • IT (“számítástechnikai”)
  • service (“szolgáltató”)

3. Company Form

The final part of the company name must describe its legal form in Hungarian. For instance, if you are forming a Limited Liability Company (LLC), known as a “Korlátolt Felelősségű Társaság” or “KFT” in Hungarian, it must be included in the company name. For the same company, you cannot use other terms like “PLC” or “Holding.”

Checklist for choosing a company name

When selecting a company name in Hungary, it must be unique, correct, and appropriate.

Here are some tips to help you choose:

A. Check the Company Registry

The company name, especially the keyword, must be unique. To make sure the name you want is not already taken, you can check the Hungarian company registry online. Watch out! Not only identical names count. There should be a difference of at least 3 characters. In any case, it should not be possible to confuse your company name with the name of another business.

If a name is too similar to an existing one, the registry court will reject it. As a precaution, consider coming up with three different names. This way, if your first choice is rejected, you can proceed without missing a beat. You can differentiate names by adding words like Global, Europe, Hungary, or Solutions.

If you find a perfect name and worry it might be taken, you can reserve it for up to 60 days. If you do not register your company within this period, the name becomes available again.

B. Ensure appropriateness

The company name should reflect the company’s characteristics accurately:

  • The company type must be correctly indicated. For example, an LLC must be called an LLC and not a PLC or Holding.
  • If an activity is included in the name, it must reflect the actual business operations. For example, a web development company cannot be named as an industrial company.
  • If you name your company after an entity or person unrelated to your business, you need written permission from them. Using their name without consent violates their rights. If you want to use the name of a historical figure, consult the Hungarian Academy of Sciences for approval.

C. Check legibility and correctness

The most important things to watch out for:

  • The keyword does not need to be in Hungarian but must use Hungarian letters and be pronounceable.
  • If you want a name that is not in a language that uses the Hungarian alphabet, it must be transliterated into Hungarian.
  • Part of the name must be in Hungarian (the activity, if included, and the company form).

Get help from the experts

Helpers Hungary has almost 20 years of experience providing business and immigration assistance to foreigners living, working, and doing business in Hungary. We set up more than a hundred companies every year, and we have ample experience with the entire procedure, including choosing a name for your Hungarian company. We would be happy to help you too.

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