Hungary attracts IT specialists and entrepreneurs thanks to several key benefits. As an EU member since 2004, it provides access to the single European market. Tax residency is granted upon registration, simplifying tax procedures. A streamlined accounting and tax reporting system reduces administrative burdens, and the government actively supports foreign entrepreneurs.
Company structures in Hungary
Non-residents can register in Hungary under various legal forms, such as KFT, RT, Kkt.
- KFT (Limited Liability Company):
A popular choice for small & medium-sized international ventures, as there are no restrictions on the number or nationality of founders, allowing foreigners full ownership. Minimum capital is HUF 3,000,000 (~€7,500), which doesn’t have to be deposited in a bank; it can be accounted for as cash in the company.
- RT (Joint Stock Company):
Offers foreigners the opportunity to acquire both bearer and registered shares. Preferred shares can make up to 50% of the registered capital, while interest shares can be up to 10%. Private RTs need a minimum capital of HUF 5,000,000 (€12,221), and public RTs require HUF 65,000,000 (€158,873). Contributions can be in cash or kind.
- Kkt (General Partnership):
All partners share full responsibility for business’s activities. At least two partners are required, with one acting as a general partner with unlimited liability, while others have limited liability based on their capital contributions.
From our experience, clients often opt for KFT business registration.
