How to Register a Kft (LLC) in Hungary: 2026 Step-by-Step Guide

How do you register a Kft in Hungary?

Registering a Kft (korlátolt felelősségű társaság, or limited liability company) in Hungary works through a licensed Hungarian lawyer, who drafts your deed of foundation and files it electronically with the company court. This is the standard vehicle foreign founders use, and since 2024 the state charges no court registration duty for the simplified electronic procedure (source). A clean file is usually registered within a few working days.

Before filing you need a company name, a Hungarian registered office, at least one owner and one managing director, a minimum share capital of 3,000,000 HUF (about 7,500€), and one or more activity codes (source). Foreign nationals can fully own and manage a Hungarian company, and non-residents can complete everything remotely by giving the lawyer a power of attorney. Once the company exists, its profits are taxed at 9%, the lowest headline corporate rate in the EU (source). The sections below walk through each requirement, the real costs, and what happens after the court issues your registration.

What is a Kft and why do foreigners choose it?

A Kft is Hungary's private limited liability company, comparable to a British Ltd, a German GmbH, or a French SARL. Owners (called members) are liable only up to their capital contribution, so personal assets sit behind a legal shield. A Kft can have a single member or many, and both the members and the managing director (ügyvezető) may be foreign nationals resident anywhere.

Founders pick the Kft for three practical reasons: limited liability, a light governance structure, and access to Hungary's 9% corporate tax (source). If you are still weighing structures, it is worth reading how the Kft compares with a Bt partnership or sole trader status before you commit, because switching form later means a fresh set of filings. For most consultancies, agencies, online sellers, and holding vehicles, the Kft is the default answer.

What do you need before you start?

Have these elements ready before the lawyer opens a file. Missing pieces are the most common cause of delay.

• Company name ending in Kft., checked for uniqueness in the company register.
• Registered office (székhely) at a Hungarian address. This can be rented premises, an owned property, or a registered office service if you do not need physical space.
• Members and a managing director, with passports and personal data. Foreign founders receive a Hungarian tax identifier as part of the process (source).
• Share capital of at least 3,000,000 HUF, with a minimum contribution of 100,000 HUF per member (source).
• Activity codes from the Hungarian TEÁOR classification maintained by the statistical office, updated to the TEÁOR'25 version (source). You must state at least a principal activity.

Documents issued abroad usually need a certified Hungarian translation, and in some cases an apostille. Your lawyer will tell you which of your papers require it.

Why is a Hungarian lawyer mandatory?

You cannot register a Kft on your own. Hungarian company law requires the deed of foundation to be countersigned by a practising Hungarian attorney (ügyvéd), who then submits the application electronically using a qualified digital signature (source). This is a legal requirement, not a convenience, and it applies whether you form the company in person or remotely.

The lawyer does more than sign. They check the company name, draft the deed in line with the statutory template, confirm your activity codes, prepare the specimen signature of the managing director, and handle the filing and any court queries. For foreign founders who cannot read Hungarian legal text, this countersignature is also the moment errors get caught before they reach the court. A short conversation with a Hungarian lawyer early on will tell you exactly which documents you need and how to structure ownership.

How much capital do you need, and when do you pay it?

The minimum share capital of a Kft is 3,000,000 HUF, roughly 7,500€, with each member contributing at least 100,000 HUF (source). Capital can be cash, in-kind contributions (equipment, receivables, intellectual property), or a mix of both.

You do not have to wire the full amount before filing. The deed of foundation sets when members pay in their cash contributions, and Hungarian company law blocks dividend payments until the capital is fully paid up (source). In practice this lets founders start the company and fund it from early revenue, provided the deed reflects that schedule. The capital is not a fee or a locked deposit: once the company holds it, the money is working capital you can spend on the business.

Step by step: the registration process

A standard Kft formation follows a predictable sequence.

1. Agree the ownership split, choose a name, and settle the registered office and activity codes.
2. Engage a Hungarian lawyer and provide identity documents and any required translations.
3. The lawyer drafts the deed of foundation and the ancillary documents.
4. You sign in person, or via power of attorney if you are abroad.
5. The lawyer files electronically with the company court.
6. The court reviews and, in the simplified procedure, decides within one working day of a complete submission (source).
7. The company receives its registration number, tax number (adószám) and EU VAT number, and the details are published in the official company gazette (Cégközlöny).

Because so much hinges on a clean first submission, the preparation stage matters more than the court stage. Rushed activity codes or an unverified name are what push a one-day registration into a repeat filing.

What does registering a Kft cost and how long does it take?

The state registration itself is free of court duty under the simplified electronic procedure (source). Your real cost is the mandatory lawyer. Independent formation guides put legal fees for a standard Kft at roughly 500€ to 2,000€ depending on the firm and complexity (source), and translations or apostilles add to that.

On timing, the simplified procedure allows a court decision within one working day of a complete file (source), though realistic end-to-end timelines run from a few days to a couple of weeks once you include preparation, translations, and opening a bank account. Budget for ongoing costs too: Hungarian companies effectively need a monthly accountant, so read up on bookkeeping for a Hungarian company before you launch, because the first filings fall due quickly.

What happens after the company is registered?

Registration is the start, not the finish. Within five working days the company must register with the Hungarian Chamber of Commerce and Industry (MKIK) and pay the annual chamber contribution of 5,000 HUF (source). You then open a Hungarian business bank account, which must be arranged in Hungary and reported to the tax authority.

From there the recurring obligations begin: VAT returns at the 27% standard rate (source), payroll and social contributions if you hire, corporate tax at 9% (source), and personal income tax at 15% on any salary or dividends you draw (source). An accountant handles the periodic filings, and your lawyer stays useful for contracts, ownership changes, and later restructuring. Getting these first steps right is what turns a registered shell into a company that can actually invoice and pay you.

Frequently asked questions

Can a foreigner own 100% of a Hungarian Kft?

Yes. Both the members and the managing director can be foreign nationals resident abroad, and non-residents can register remotely through a Hungarian lawyer acting under a power of attorney. Foreign owners receive a Hungarian tax identifier during the process (source).

Do I need to be in Hungary to register a Kft?

No. The whole formation can be completed remotely by granting your Hungarian lawyer a power of attorney. A Hungarian registered office is still required, and afterward the company must open a Hungarian business bank account in the country.

How much is the minimum capital for a Kft, and is it a fee?

The minimum share capital is 3,000,000 HUF (about 7,500€), at least 100,000 HUF per member (source). It is not a fee: it becomes the company's own working capital once paid, and it can be contributed in cash, in kind, or over time under the deed of foundation.

Is a lawyer really mandatory to set up a Kft?

Yes. Hungarian law requires a practising attorney to countersign the deed of foundation and file it electronically with the company court (source). You cannot lodge the registration yourself, so a Hungarian lawyer is a fixed part of the process.

How long does Kft registration take?

In the simplified procedure the company court decides within one working day of a complete filing (source). Including preparation, translations, and banking, realistic timelines run from a few days to about two weeks.