Last updated on 10 November 2020.
One of the most popular forms of business for small and medium sized companies is a limited liability company (LLC or LTD). Compared other ways of setting up an LLC in Europe, Hungarian LLCs offer several advantages: uncomplicated and fast setup, low taxes and a relatively small share capital. In addition, the ownership and management structure is open for all.
A Hungarian LLC (called “Korlátolt Felelősségű Társaság”, or KFT in Hungarian) only takes 4-5 business days to be set up. You can sign the incorporation documents in person or send us a Power of Attorney to do it. Just a few days after the documents are submitted to the authorities, you will be the owner of a Hungarian LLC with an immediate VAT number.
The minimum share capital for a Hungarian LLC is 3 million HUF, which comes out to approximately EUR 8,300. Moreover, there is no legal requirement to keep this amount untouched for any period of time. Thus, you can spend it on company expenses including accounting services, buying equipment and renting an office.
Many countries require that companies have a local shareholder or manager. There is no such restriction on Hungarian LLCs. The only requirement is that the company should have at least one owner/shareholder and at least one manager. Naturally, the owner and the manager can also be the same person. By choosing this structure, you can have complete control over your Hungarian limited liability company.
Finally, the owner of a Hungarian LLC can also be another company. In this case, the Hungarian LLC will be the subsidiary of the parent company.
At Helpers, we have more than 10 years of experience in helping clients set up and manage LLCs. Since we mostly assist foreign-owned small and mid-sized companies, we have developed unique insights and best practices for this niche, including for example staffing assistance and accountancy services. Contact us for a custom-made solution that suits your vision!
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