List (.pdf)
Corporate law and register
The corporate rules for a Kft. are contained in the Hungarian Civil Code (Act V of 2013) and company-registration legislation. Company registration is handled by the courts of registration.
Company form
Korlátolt felelősségű társaság (Kft.), a limited liability company. It may be established by one or more individuals or legal entities.
Permitted activities
Any lawful business activity. Banking, payment, insurance, investment and other regulated activities require a separate licence or authorisation.
Company registration
The constitutional documents are prepared with a Hungarian lawyer/attorney and filed electronically with the competent court of registration. After registration the company receives the required registration and tax numbers.
Company name
The company name must be distinguishable from existing registered companies and include the Kft. designation.
Formation documents
Articles / memorandum of association, details of the shareholders and managers, registered office, business description and other documents required by the registry, notary or formation authority. Foreign shareholder documents may require legalisation/apostille and translation.
Registered office
The company must maintain a registered office in the country of incorporation. It is used for official correspondence and must meet local legal requirements.
Minimum share capital
The minimum registered capital of a Kft. is HUF 3,000,000. The timing and method of contributions are governed by law and the constitutional documents.
Shareholders / members
One or more shareholders, individuals or legal entities. A single-member Kft. is permitted.
Directors / management
Day-to-day management is carried out by one or more managing directors. Their powers are governed by law and the constitutional documents.
Accounting and annual reporting
A Kft. keeps accounting records and prepares annual financial statements, which are filed and published electronically as required.
Information available to third parties
Core registration details about the company and its corporate bodies are available through the national business register to the extent required by law. Beneficial ownership information is disclosed to competent authorities and other persons according to applicable AML/UBO rules.
Taxation
The company is subject to the ordinary tax regime of its country of incorporation. Before trading starts, the structure should be reviewed for tax residence, corporate income tax, VAT, possible withholding taxes, transfer-pricing rules and the application of double-tax treaties to the actual business model.
Corporate bank accounts
The company may open corporate accounts with local or foreign banks and European payment institutions / EMIs. Approval depends on the business profile, ownership, customer and counterparty countries, source-of-funds evidence and the expected payment pattern.
Registration and maintenance cost