Setting up a business in Hungary

An overview of the process of starting a new business in Hungary.

Legal requirements

The harmonisation of Hungarian commercial and company law with the EU legal system has been fully achieved. Act IV of 2006 regulates the formation of companies, whilst Act V of 2006 on publicly available company information, company court procedures and solvent liquidation governs the steps involved in founding companies.

Companies Act [HU]

Companies without a legal entity exist in Hungary - in the form of general partnerships or limited partnerships - as well as companies with a legal entity, including limited liability companies, joint ventures and joint-stock companies.

Publicly Available Company Information, Company Court Procedures and Solvent Liquidation Act [HU]

In addition to easing the company foundation procedure, each newly-formed company also needs a sound commercial strategy and secure financial support if it is to stand any chance of success.

Access to finance — Hungary

Administrative procedures

Setting up a company

To establish a company, at least two members are required - with the exception of limited liability companies and joint stock companies.

Limited liability companies can be set up with a minimum of five hundred thousand forints, while joint stock companies require share capital of at least five million forints. As well as Hungarian citizens, any foreigner with a residence permit can also pursue a business activity after obtaining a sole trader's licence.

Government portal - information on the foundation and cessation of companies [HU]

Registering a company

In Hungary, companies must be entered into the company register kept at the competent county court or the metropolitan court - as the Court of Registration - depending on where the company has its registered seat.

Applications for registration or for amending details must be submitted electronically. The Court of Registration electronically records all documentation relating to the company, and provides the company's legal representative with an electronic certificate on the registration, and confirmation of any changes made.

Government portal - information on electronic company procedures [HU]

Homepage of the department of the Ministry of Justice and Law Enforcement in charge of company information and electronic company procedures [HU]

Online company information service of the Company Information Service [HU]

Resources

The following websites give useful information on starting up companies:

Homepage of the Ministry of National Development and Economy

Homepage of ITD Hungary - Hungarian Investment and Trade Development Agency

Homepage of the Hungarian Business Incubators' Association

Programmes

The 'In Tune with Business' programme is aimed at reducing the burden on companies and improving their operating conditions. Among other goals, the programme focuses on simplifying company and tax administration, increasing the legal security of companies, improving financial conditions and enhancing fair trade and transparency.

Description of the 'In Tune with Business' programme and related documents on the homepage of the Ministry of National Development and Economy

The main purpose of the Hungarian Development Bank's (MFB) Start Loan Programme is to encourage private businesses and company start-ups.

Start Loan Programme homepage

Personalised help and advice

The Enterprise Europe Network provides businesses with information and advice through its local partners.

Enterprise Europe Network – contact points – Hungary

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.

SOLVIT – contact points – Hungary

Source: European Commission