How to Register Your Limited Liability Company (Kft.) in Budapest, Hungary
Budapest, Hungary’s capital, is a high-growth gateway to the EU single market. Below you’ll find a concise, step-by-step path to forming a Kft., plus practical insights on Budapest’s economy, business streets, sectors, real estate, and how Damalion supports founders and investors end-to-end.
Why choose Budapest, Hungary for your Kft. registration?
Selecting Budapest, Hungary gives you a dense talent pool, investor visibility, and EU-level infrastructure.
- Scale: ~€58B metro GDP (~38% of Hungary’s output).
- Business streets/hubs: Andrássy Avenue (luxury & offices), Váci utca/Váci út corridor (corporate artery), Corvin Quarter – District IX (mixed-use), Graphisoft Park (IT campus).
- Growth sectors in Hungary: SSC/BPO, IT & software, biotech, logistics, renewable energy, fintech.
Damalion assists with registered office in Budapest, compliance setup, and sector-specific investment structuring in Hungary.
What is a Kft. in Hungary and who can own it?
A Hungarian Kft. is the flexible, limited-liability vehicle favored by SMEs and cross-border investors.
- Minimum share capital: HUF 3,000,000 (~€7,700)
- Shareholders: One or more (individuals or legal entities; foreign owners allowed)
- Management: At least one ügyvezető (managing director)
- Register & authority: cégbíróság (Company Court) issues the cégjegyzék number
Damalion drafts the Articles of Association, arranges director services if needed, and files with the Hungarian Company Court.
How do you register a Kft. in Budapest, Hungary (step-by-step)?
Hungary’s digital filing system makes Kft. (LLC) formation efficient when you follow these steps:
- Reserve company name via Céginformációs Szolgálat (uniqueness check).
- Draft the társasági szerződés (Articles) with a Hungarian lawyer/notary.
- Open a corporate bank account and deposit HUF 3,000,000 (KYC/AML at bank).
- File with the cégbíróság (electronic submission via lawyer).
- Obtain tax number (adóazonosító szám) from NAV; register for local business tax in Budapest.
- Municipal notifications/licences for regulated activities (e.g., hospitality, health).
- Request EU VAT number (közösségi adószám) if trading within the EU.
Damalion manages end-to-end: legal drafting, NAV registration (Tax Identification Number), and Hungarian bank introductions.
What are the tax benefits for a Kft. in Hungary?
Hungary is competitive on headline and local taxes, improving net returns for entrepreneurs.
- Corporate income tax: 9% (flat)
- Local business tax (Budapest): 2% (municipal)
- Dividend withholding: 15% (often reduced by treaties/EU rules)
- VAT: 27% standard; 18%/5% reduced for designated sectors
Damalion provides tax structuring, monthly bookkeeping, and year-end compliance in Hungary.
How long does Kft. registration take in Budapest, Hungary?
With documents prepared and a responsive bank, incorporation typically completes in 3–7 business days.
Damalion clients frequently complete the process in under 5 days thanks to established Hungarian partner networks.
Is Budapest, Hungary real estate attractive for entrepreneurs and investors?
Yes, Budapest offers yields and redevelopment opportunities that attract both developers and long-term investors.
- Prime office yields around ~5.25%
- Residential demand from expats, students, and digital nomads
- Hotels benefit from rising tourism (13M+ overnight stays in 2023)
Damalion structures Hungarian real estate vehicles (PropCo/OpCo via Kft.) and advises on cross-border holding and exit.
How does a Kft. compare with other company forms in Hungary?
Hungary offers several entities; here’s a concise comparison of Kft., Rt., and Bt. to guide your choice.
| Criteria | Kft. (LLC) | Rt. (Company by Shares) | Bt. (Limited Partnership) |
|---|---|---|---|
| Legal personality | Yes—separate entity | Yes—separate entity | Yes—liability differs by partner |
| Minimum capital | HUF 3,000,000 (~€7,700) | Private Rt.: HUF 5M; Public Rt.: HUF 20M | No statutory minimum |
| Liability | Limited to contribution | Limited to contribution | General partner: unlimited; Limited partner: limited |
| Ownership | 1+ shareholders (local/foreign) | Shareholders; Public Rt. can list shares | ≥1 general & ≥1 limited partner |
| Management | At least one ügyvezető | Board (Public Rt.) / director (Private Rt.) | Managed by general partner |
| Best for | SMEs, family firms, foreign investors | Larger firms, capital raising | Small businesses, professionals |
Damalion advises on choosing between Kft., Rt., and Bt., and handles full incorporation in Hungary.
Hungary has got a Hungary-Luxembourg Double Tax Treaty to structure investments throught Luxembourg holding companies and investment vehicles such as SOPARFI, SLP (SCSP), RAIF and more. Please contact your Damalion expert now to register your KFT company in Budapest.
FAQ – Company Formation in Budapest, Hungary
1) What is the minimum share capital for a Kft.?
HUF 3,000,000 (~€7,700). Damalion ensures proper capital structuring.
2) Can a Kft. have a single shareholder?
Yes. Damalion supports single-member incorporations.
3) Where is the company registered?
With the cégbíróság. Damalion handles the filing.
4) Do founders need Hungarian residency?
No. Damalion registers Kft.s for non-residents.
5) Is a lawyer mandatory?
Yes, filings must be submitted via a lawyer. Damalion accredited expert provides this service.
6) How fast is the process?
3–7 business days. Damalion streamlines to under 5 days.
7) What are the main taxes?
9% CIT, up to 2% local tax, 27% VAT. Damalion accredited expert advises on optimization.
8) Can we distribute dividends abroad?
Yes. Damalion assists with repatriation planning.
9) Is a registered seat required?
Yes. Damalion provides registered office services in Budapest.
10) What language are the deeds in?
Hungarian. We may arrange certified translations if needed.
11) Are bookkeeping and accounts required?
Yes. Damalion accredited expert provides full accounting in Hungary.
12) Can a foreigner be ügyvezető?
Yes. Damalion helps with director appointments.
13) What is the adóazonosító szám?
The tax ID issued by NAV. Damalion accredited expert handles applications.
14) Do employees trigger social contributions?
Yes. Damalion accredited expert supports payroll and HR compliance.
15) Is EU VAT automatic?
No. Damalion registers your Kft. for EU VAT.
