Hungarian company formation is allowed for any legal person who is not specifically forbidden from doing so. But how does that work in practice?
Anyone can set up a company in Hungary
In Hungary, the most popular form of business is the LLC. Any legal person can set up a company who is not expressly forbidden from doing so and can supply the minimum share capital, which is HUF 3 million (currently ca. EUR 7,500). Most LLCs are set up by natural persons; in that case, the person must be an adult (above 18 years of age) who is at full legal capacity and has valid identification.
The owner of the company can also be a foreign company. In this case, it is referred to as a subsidiary, but it still can be an LLC. There is only one major difference compared to setting up an LLC as an individual: the documents of the parent company will be required to be legalized and translated.
There are no constraints on nationality of the owner, whether it is a natural or a legal person. Be your country of origin a member of the EEA or any other country, you can set up a Hungarian LLC on your own, without local partners or shareholders. The company can have multiple owners (the minimum contribution to the share capital is HUF 100,000), but you can also become a sole owner and have 100% control of your Hungarian company throughout its entire life cycle, from setup to liquidation.
To set up your company, you will have to identify yourself. EEA nationals only need a valid ID card. Third-country nationals need a valid passport. No other identification document is required.
You must not be forbidden from setting up a company
When you are incorporating your Hungarian company, you will have to make a declaration that you are not a criminal and that you are not expressly forbidden from setting up a company in Hungary. You can get banned as a consequence of various unlawful activities, including non-compliance with taxation requirements, or if your previous Hungarian business went bankrupt. The Hungarian Company Registry keeps a list of legal persons currently not eligible for company setup, which is available here.
Remote company setup possible
To set up your company, you will have to sign various documents which a lawyer can submit to the company registry. While normally you should travel to Hungary to take care of this, remote company setup is also possible. You just need to sign a power of attorney and let someone represent you – for example, if you give your authorization to a member of the Helpers Business Team, we can take care of the incorporation for you, so you have to travel to Hungary only once, to open a local corporate bank account for your new company.
In case you cannot travel to Hungary for the time being but you want to start your business operation as soon as possible, we also offer a service that let’s you do just that. In that case, check out our “Remote+ package” that includes bank account opening for your Hungarian company without your presence.
You can set up a company in Hungary
Anyone can set up a company in Hungary, regardless of nationality. You just need to match the following criteria:
- an adult (above 18 years of age) at their full legal capacity;
- with valid ID documents (passport);
- not expressly forbidden from creating a company;
- can supply the minimum share capital (HUF 3 million).
Are you planning to set up a company in Hungary? Contact us today, and let’s discuss how we can be of assistance. Helpers Hungary has 15+ years of experience of supporting foreigners in Hungary, and we are confident that we can find the best solutions for you.