Formation de Sociétés en Hongrie

Company structure in Hungary

Legal basis - Civil right

Legal framework - Act V of 2013 on the New Civil Code of Hungary

Company form - Limited liability company (Korlátolt Felelősségű Társaság, KFT)

Responsibility - The liability of the members of the company is limited to the amount of their capital contributions.

Capital - The legal minimum share capital of one Kft. is 3,000,000 HUF. It is not necessary to pay the entire initial capital at the time of registration. The capital can consist of a contribution in cash and in kind. A member interest in a Kft. is indivisible (except with the consent of Kft. itself in the special cases listed in the Companies Act), must be denominated in HUF, divisible by 10,000 and cannot be less than 100,000 HUF.

Voting and dividend rights may be defined in the deed of association, provided that at least one vote is allocated per participation of 100,000 HUF.

Members - At least one member, who can be a natural or legal person of any nationality. Member details are publicly available.

Leaders - At least one managing director must be appointed, who must be a natural person and can be resident or non-resident. The functions of executive corporate officer can only be exercised in person; no representation is authorized. The contact details of the Director General are publicly available.

Manager - At least one manager must be appointed, who must be a natural person and can be of any nationality.

Members meeting - The supreme body of a company is the assembly of members. Members' meetings are called at least once a year. The calendar of the annual meeting is not regulated by law and can be organized by telecommunication and by correspondence if the statutes so provide.

Registered address - A KFT is required to have its registered office in Hungary. The registered office is the place where the company's statutory records are kept, available for inspection, and is the address where documents can be served, if necessary.

Electronic signature - authorized.

Re-domiciliation - A foreign entity can be re-domiciled as a KFT.

Conformity - Companies in Hungary are required to keep the report for the fiscal year, together with supporting inventory, valuation, general ledger extract, journal ledger or other documents under one readable form for at least 8 years.

The statement of accounts that supports the accounts, directly and indirectly, must be kept for at least 8 years. Accounting records should be kept securely at company headquarters / premises, or other location reported to the tax authorities.

Companies in Hungary must publish their annual reports and file an annual return and an income tax return with the competent authorities.

The appointment of an auditor is compulsory for all companies whose annual turnover exceeds 100 million HUF according to the average of the two financial years preceding the financial year and whose average number of employees per year exceeds 50.


Key figures of companies in Hungary

Official name Republic of Hungary
Proper noun Magyarország (hu)
Continent Europe
Subcontinent European Union
Population 9,778,371 inhabitants (2018)
Population growth -0.20 % / year
Area 93,023 km²
Density 105.12 inhabitants / km²
GDP 155.703 billion $USD (2018)
GDP / capita 15,939 $USD (2018)
GDP growth 4.90 % / year (2018)
Life expectancy 76.70 years (2018)
Birth-rate 9.40 ‰ (2017)
Fertility rate 1.49 children / woman (2017)
Mortality rate 13.50 ‰ (2017)
Child mortality rate 3.60 ‰ (2017)
Literacy rate 99,05 % (2015)
Official languages Hungarian
Change Forint (HUF)
HDI 0,845 / 1 (2018)
IPE 65,01 (2018)
Nature of State parliamentary republic
Head of state President János Áder
National Holiday March 15 (Hungarian Revolution of 1848)
Nice Hungarian, Hungarian
Tourists 15,785,000 people (2017)


Formation de Sociétés en Hongrie

Economic euphoria is behind

The Hungary is a unitary constitutional republic located in central Europe, without access to the sea. It is bordered on the north by Slovakia and Ukraine, on the east by Romania, on the south by Serbia and Croatia, on the west by Slovenia and Austria.

After years of economic euphoria, with significant growth rates that have allowed the country to get back on its feet and at the average European economic level, the financial crisis has slowed down development.
As a hub between west and east, Hungary's position is strategic, but despite this, foreign investment has fallen significantly in recent times. In the long term, however, integration into the European Union is beneficial.


Formation de Sociétés en Hongrie


Despite everything, many young people continue to emigrate to the west, in the hope of finding work, which is still lacking in Hungary.
The country is aging quickly, and no longer manages to renew its generations. The population is slowly declining, about -0.25 % per year, and the movement will continue, unless there is a major change.

Finally, the country is currently ruled with an iron fist by Viktor Orbán, and basic human rights are not always well respected. In particular to the many migrants who arrive from West Asia and wish to go through Hungary to reach Germany, the United Kingdom or France. Xenophobia and violence are the lot of hundreds of thousands of unfortunate people who nevertheless flee war and poverty, thinking of finding refuge in Europe.


Corporate Taxation in Hungary

Corporate tax rate (IS)
Global CIT rate (%) 9
Corporate tax (IS) due dates
CIT return deadline The last day of the fifth month following the last day of the fiscal year (May 31 for a taxpayer in the calendar year).
CIT final payment due date The last day of the fifth month following the last day of the fiscal year (May 31 for a taxpayer in the calendar year).
Estimated due dates for CIT payments Paid quarterly or monthly.
Personal income tax rate (PPI)
Global PIT rate (%) 15
Personal income tax (PIT) due dates
PIT return due date May 20 following the calendar year of income.
IRP final payment due date May 20 following the calendar year of income.
Estimated PIT Payment Due Dates Estimated tax / advance payments may be due on a monthly basis (no later than the 12th of the month following the month of income) for Hungarian source income and on a quarterly basis (before the 12th day of the month following the quarter income) for non-Hungarian source income.
Value added tax (VAT) rate
Standard VAT rate (%) 27
Withholding tax rate (WHT)
WHT rate (%) (Div / Int / Roy) There is no WHT on outgoing payments made to foreign business entities on the basis of Hungarian national law.
Capital gains tax rate (CGT)
Corporate capital gains tax rate (%) Capital gains are subject to the standard IS rate (9%); however, the participation exemption plan may apply.
Tax rate for individual capital gains (%) Capital gains are subject to the standard IRPP rate (15%). If certain conditions are not met, an additional social tax of 17.5% is also due.
Wealth / Equity Tax Rate
Global wealth / equity tax rate (%) N / A
Rate of inheritance and gift tax
Rate of inheritance tax (%) 18% (but a preferential rate of 9% applies to residential property).
Gift tax rate (%) 18% (but a preferential rate of 9% applies to residential property).


NA means Not Applicable (that is, the territory does not have the stated tax or requirement) NP means Not Provided (that is, the information is not currently provided in this graph )