Business setup in Hungary – Why KFT is the best business structure?

Hungary is the right choice for your EU business

Hungary is increasingly popular among foreign investors because it is ideal for business setup whether you aim for local success or want to use Hungary as a springboard for entering the EU market.

• Low corporate tax rate: Only 9%, the lowest in the EU.
• EU market access: Hungary is strategically located for trade across Europe.
• Investor-friendly regulations: Foreign investors can fully own companies without complicated restrictions or local co-owners.
• Flexible corporate structures: The Kft (“limited liability company”) is suitable whether you want to instate just one or multiple shareholders at your company.

Make your Hungarian business a KFT

KFT is short for limited liability company (“Korlátolt Felelősségű Társaság” in Hungarian). It is the most popular form of business for several reasons:

• Limited liability: Owners are responsible for damages only to the extent of the share capital, minimizing personal risk.
• Low minimum capital requirement: Starting capital is only HUF 3 million (ca. EUR 8,000).
• Flexible ownership: A KFT may be owned by one or multiple shareholders. These may be both natural persons and corporate entities.
• Simplified registration: Setting up a KFT in Hungary takes just a few business days. Registration is faster and easier than for other available business structures.

How Helpers Hungary supports business setup

Established in 2005, Helpers Hungary boasts 20+ years of experience in serving international clients, focusing on business setup and residency application. Our all-inclusive service packages let you rest assured that administration is being handled by professionals, so you can focus on making your business a success.

1. Fast and efficient company registration

Registering a KFT typically takes 4-5 business days. Most of the process may be completed remotely via a Power of Attorney (POA), although you are also welcome to our Budapest office to take care of the registration in person.

2. Documentation and compliance

Based on your input, we fill in all the forms and handle all the documents relevant to the company formation procedure. We manage passport copies and personal details of shareholders and managing directors which will need to be listed in the Company Registry. We provide a registered address for the business where authorities and partners can always contact it. We also help selecting the right activities for the company from the available NACE codes, and even help you come up with an appropriate name for your Hungarian company.

3. Ongoing support with accountancy and taxes

Hungarian law requires that every company submits regular tax reports, which can only be done by certified accountants. In line with this, we also have accountancy among our services, which will take care of monthly, quarterly, and yearly tax reports as well as payroll administration. This way you can easily ensure corporate compliance. You can also ask for custom tax advisory and adjust your operation accordingly to make the most of your funds.

4. Legal advisory and additional assistance

Start by telling us all about your business endeavors and your plans in Hungary, and we can help you make plans for the short and longer term. We can support you along your entire journey, from selecting the most suitable business structure through strategic business planning for the Hungarian market to ensuring regulatory compliance.

Ready to set up your company in Hungary?

Thanks to our years of experience and extensive local know-how, Helpers Hungary provides a complete turnkey solution in Hungarian business setup. We will take care of all the administrative tasks for you, like business registration, accountancy, and seat registration, as our goal is to make your entry into the Hungarian market seamless, so you can focus on growing your business.

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