COMPANY REGISTRATION
In Hungary, there are 3 forms ofbusiness organisations: a business partnership, a limited liability company and the privately/publicly limited liability company.
Here is a concise comparison of the main differences:
What do I need to start a company?
You need the following to start your business:
- a company name,
- a registered business address,
- available initial capital,
- the personal details (or business details) of the founder,
- the personal details of the managing director.
If you are ready to incorporate the company, download and complete our company incorporation data sheet and can start the registration process.
So how can I register a company?
Companies in Hungary are registered bythe Regional Courts e.g. the Metropolitan Court of Budapest. Companies may be registered in a simplified process taking 3 business days in total or under a standard procedure (including bilingual documents) which takes 1 week usually.
The registration application must be filed to the court through a licensed attorney in Hungary. The attorney prepares the following documents:
- statute / articles of incorporation(bilingual)
- declaration of acceptance of themanaging director’s position
- declaration of consent to registeredseat (by owner)
- declaration of financial contributionspaid (by the managing director)
- certified specimen of the managingdirector’s signature
- declaration of list of members (by themanaging director)
- assignement of an agent for service ofprocess (if necessary)
- power of attorney
- application form for incorporation.
NEXT STEPS AFTER REGISTERING A BUSINESS ENTITY
Tax authority registration
Registering a business entity is a single-window system,which means that the court of registration notifies the tax authority, and the company will receive their tax number from the court of registration at the same time as the certificate of registration. No individual registration is thus required.
Companygate registration
Business entities must register an e-government access topublic services, colloquially referred to as a „company gate” or „cégkapu”. You can register online through the organisation’s registered representative’s personal client gate here: https://tarhely.gov.hu/ckp-regisztracio/tajekoztato.html
Registration with the regional Chamber of Commerce
Business entities must register with their regional Chamberof Commerce. While registration is free, the annual membership fee is HUF 5,000. You can register with theBudapest Chamber of Commerce via this link:
E-signatures
All legal entities are required to have an electronicsignature. As business associations are required to communicate electronically (with the authorities), only documents bearing an electronic signature can be legally attached during the procedure (on state platforms, epapiron). Qualified electronic signature providers: FlintSign, MicsoSec, and Netlock.
Bank account
Legal entitites must have a bank account in Hungary at alltimes. The registered representative of the organisation may open a bank account at a bank of their choice with the original founding documents and the certificate of registration.
Invoicing
Business entities must have an invoice booklet (paper) ormust use a registered invoicing software (online) to issue invoices in compliance with Hungarian legislation for their business activities.
Internal policies
After registering a business entity, Hungarian lawprescribes certain internal policies concerning the internal operation of the organisation. The law on accounting prescribes the following internal documents: accounting policy, invoicing policy, cash and bank account management policy, appraisal policy, and an inventory policy. Additionally, a business entity needs to have a data processing policy and a data protection notice, as well as certain HR-policies.
If you have any questions or would like to start the business registration process,
don't hesitate to contact us!