Hungary

Hungary has been the EU member since 2004 and Hungarian companies are widely used as holding companies that can bring tax-efficient solutions. Hungary offers beneficial tax environment with low corporate income tax compared to other European Union jurisdictions, extensive network of double tax treaties and favorable withholding tax treatment.

Hungary Kft formation is easy and fast with the possibility of obtaining immediately VAT number. The official currency is Forint. Hungarian legislation recognizes various types of companies e.g.: Limited Liability Company – Kft., Public or Private Company Limited by Shares – Nyrt.,Zrt., Unlimited Partnership – Kkt., Limited Partnership – Bt.

Legal formKorlátolt Felelősségű Társaság – Kft.
LegislationCivil law
Foundation timeOnce received all required documents from a client, the incorporation of the new Kft takes usually 1 week and documents are delivered within 2 weeks.
ShareholdersMinimum required: 1
Form: physical person/corporate body (both possible)
Nationality: Any (Hungarian nationality not necessary)
DirectorsMinimum managers required: 1
Form: physical person
Nationality: Any (Hungarian nationality not necessary)
Share capitalMinimum paid up 500,000HUF
Bearer sharesNot Allowed
TaxesCorporate income tax rate: 10% up to profit before tax 500,000,000HUF, 19% if profit is more than 500,000,000HUF
Withholding tax: no withholding tax on dividends, capital gain tax, paid to non-resident shareholders, no withholding tax on interests paid to non-resident lenders
VAT: 27% general rate, 18% e.g. for district-heating, 5% restricted to books, newspapers and basic medicines
Other: more than 60 double tax treaties; local business tax – levied on company’s gross sales revenue less cost of goods acquired for resale and the value of mediated services and subcontractor’s fees with maximum rate of 2%. Companies with registered address in local business tax free towns are available.
AccountancyFiling of accounts is required
AuditObligatory if certain conditions are met
Anonymity and confidentialityThe companies register is publicly accessible
OtherRegistered office: Must be maintained in the UK
General meetings: Anywhere in the world

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Our services fulfill Czech Standard - ČSN EN ISO 9001 & Czech Standard - ČSN ISO/IEC 27001