{"id":4137,"date":"2026-09-30T11:35:04","date_gmt":"2026-09-30T09:35:04","guid":{"rendered":"https:\/\/pkf.hu\/?p=4137"},"modified":"2026-09-30T11:40:29","modified_gmt":"2026-09-30T09:40:29","slug":"how-to-start-a-business-in-hungary","status":"publish","type":"post","link":"https:\/\/pkf.hu\/en\/2026\/09\/30\/how-to-start-a-business-in-hungary\/","title":{"rendered":"Starting a business in Hungary: A guide to business, tax and accounting"},"content":{"rendered":"

Hungary\u2019s central European location, EU market access, and competitive 9% corporate income tax rate make it an attractive base<\/strong> for regional operations. However, establishing and running a business in Hungary requires careful consideration of local corporate, tax, employment, and reporting requirements from the outset.<\/p>\n

Choosing the right legal entity<\/h2>\n

Selecting the appropriate legal structure depends on the scale and purpose of the investment. Foreign investors commonly establish a Hungarian subsidiary, typically in the form of a limited liability company (Kft.), while branches and representative offices can be appropriate in specific circumstances.<\/p>\n\n\n\n\n\n\n\n\n\n
Entity Type<\/th>\nMinimum Capital<\/th>\nLiability<\/th>\nOperational Scope<\/th>\n<\/tr>\n<\/thead>\n
Kft.<\/strong> (Limited Liability Company)<\/td>\nHUF 3M<\/td>\nLimited<\/td>\nFull commercial operations; a common choice for subsidiaries.<\/td>\n<\/tr>\n
Zrt.<\/strong> (Private Company Limited by Shares)<\/td>\nHUF 5M<\/td>\nLimited<\/td>\nSuitable for larger enterprises or more complex ownership structures.<\/td>\n<\/tr>\n
Nyrt.<\/strong> (Public Company Limited by Shares)<\/td>\nHUF 20M<\/td>\nLimited<\/td>\nSuitable for companies whose shares are publicly traded or intended for public trading.<\/td>\n<\/tr>\n
Branch Office<\/strong><\/td>\nNo separate share capital<\/td>\nParent company liable<\/td>\nDirect operations in Hungary conducted by the foreign parent.<\/td>\n<\/tr>\n
Representative Office<\/strong><\/td>\nNo separate share capital<\/td>\nParent company liable<\/td>\nNon-commercial activities such as market research and liaison.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Company Formation Steps<\/h3>\n

Establishing a Hungarian company generally involves:<\/p>\n

    \n
  1. Preparing the incorporation documents:<\/strong> The articles of association and other required documents must be prepared in accordance with Hungarian company law and countersigned by a Hungarian attorney or, where applicable, executed in the required notarial form.<\/li>\n
  2. Registration with the Court of Registration:<\/strong> The company must be registered with the competent Court of Registration.<\/li>\n
  3. Tax and administrative registration:<\/strong> The company must obtain a tax number and complete the registrations relevant to its activities.<\/li>\n
  4. Sector-specific licensing:<\/strong> Regulated industries, including certain financial and insurance activities, may require additional regulatory approval before operations can begin.<\/li>\n<\/ol>\n

    The detailed requirements depend on the legal form, ownership structure and activities of the business.<\/p>\n

    The Hungarian tax ecosystem<\/h2>\n

    Hungary\u2019s headline corporate income tax (CIT) rate is 9%<\/strong>, making it one of the most competitive corporate tax rates in the European Union. For international businesses, the tax environment also includes rules governing cross-border payments, transfer pricing<\/a>, double taxation treaties and participation-related tax treatment.<\/strong> Hungary maintains an extensive network of double taxation treaties, while the taxation of dividends, interest and royalties paid to foreign recipients depends on the relevant domestic and treaty provisions and should therefore be assessed on a case-by-case basis.<\/p>\n

    The standard VAT rate is 27%<\/strong>, with reduced rates of 18% and 5% applying to specific goods and services. Businesses subject to VAT must also comply with Hungary\u2019s electronic invoicing and online invoice-data reporting requirements.<\/p>\n

    For large multinational groups, Hungary has implemented the Global Minimum Tax<\/a> (GloBE \/ Pillar Two)<\/strong> framework. The rules generally apply to multinational enterprise groups and large-scale domestic groups meeting the \u20ac750 million consolidated revenue threshold in at least two of the four preceding fiscal years<\/strong>. The framework is designed to ensure a global minimum effective tax rate of 15%, subject to the applicable rules and exclusions.<\/p>\n

    Labour law and workforce integration<\/h2>\n

    Employment contracts generally need to be concluded in writing, and an employment relationship is normally established for an indefinite period<\/strong> unless the parties agree otherwise within the statutory framework.<\/p>\n

    Standard full-time employment is generally based on an eight-hour working day<\/strong>. The Labour Code also regulates working-time arrangements, overtime and rest periods. The statutory annual leave entitlement starts at 20 working days<\/strong>, with additional days available depending on factors such as the employee\u2019s age and family circumstances. Hungarian employment law also provides specific protections relating to pregnancy, parental responsibilities and maternity-related leave.<\/strong><\/p>\n

    When hiring non-EU\/EEA nationals<\/strong>, employers must consider the applicable residence and employment authorisation requirements. The rules vary according to the employee\u2019s nationality, role, residence status and type of employment. The National Directorate-General for Aliens Policing<\/a> provides current information on residence permits for employment and related procedures.<\/p>\n

    Accounting, financial reporting, and audit<\/h2>\n

    Accounting and financial reporting requirements depend on the company\u2019s legal form, size, activities and reporting framework.<\/strong> Financial statements are generally prepared in Hungarian Forints, although certain companies may meet the statutory conditions for using another currency.<\/p>\n

    Hungarian accounting rules also provide for the use of IFRS<\/strong> in defined circumstances. IFRS adoption can be mandatory for certain categories of companies, while other entities may be permitted to apply IFRS subject to statutory conditions.<\/p>\n

    Establish your Hungarian operations with professional support<\/h2>\n

    Entering the Hungarian market involves more than setting up a company. Tax registration, accounting, payroll, employment compliance and ongoing reporting obligations all need to be considered as part of the setup process.<\/p>\n

    PKF Hungary provides integrated audit<\/a>, tax advisory<\/a> and accounting services<\/a> for companies establishing or expanding their operations in Hungary.<\/p>\n

    Contact our advisory team<\/a> to discuss your business entry strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Hungary\u2019s central European location, EU market access, and competitive 9% […]<\/p>\n","protected":false},"author":8,"featured_media":4138,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[1015,992,1013,696,1012,1011,1014,1010,692],"class_list":["post-4137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-in-english","tag-accounting","tag-audit","tag-business","tag-corporate-tax-en","tag-doing-business","tag-how-to-start-a-business-in-hungary","tag-labour-law","tag-starting-a-business-in-hungary","tag-tax-en-2"],"acf":[],"yoast_head":"\nHow to start a business in Hungary: Tax, Accounting, Audit - PKF Hungary<\/title>\n<meta name=\"description\" content=\"Learn how to start a business in Hungary, from company formation to employment, tax, and accounting for foreign investors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pkf.hu\/en\/2026\/09\/30\/how-to-start-a-business-in-hungary\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to start a business in Hungary: Tax, Accounting, Audit - 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