Company formation in Hungary

Are you considering establishing a company in Hungary but are unsure which corporate form would best suit your business?

Are you looking for a law firm that can guide you efficiently and reliably through the company registration process and also provides dependable registered office services?

Do you require professional and long-term legal representation for your business beyond the company formation procedure?

Once the decision to establish a company has been made, the first step is to select the corporate form that best fits your needs. Under Hungarian law, the main differences between the various corporate forms are determined primarily by the following factors:

• the members’ liability for the obligations of the company,
• the amount of the minimum required capital, and
• the rules governing the transfer of ownership interests.

The next step in the company formation process is the selection of the company name. Pursuant to the Act on Company Publicity, Court Registration Proceedings and Voluntary Dissolution (Ctv.), the company name must comply with the principles of name exclusivity, name authenticity, and name clarity. These requirements mean that the chosen company name must:

• differ from the names of other companies registered in Hungary, i.e. it must be clearly distinguishable and identifiable;
• not create a false or misleading impression of reality, meaning that the company name must not be deceptive; and
• apart from the distinctive element (the leading word placed at the beginning of the name, which serves as the primary identifier distinguishing the company from other businesses engaged in similar activities), contain only Hungarian-language words.

Following this, the company must be provided with a registered office. This may be a property owned by the founders, leased premises, or a registered office provided by a professional registered office service provider.

After selecting the registered office, one of the most legally significant steps follows: depending on the type of legal entity, the preparation of the articles of association, deed of foundation, or statutes. In addition to the mandatory statutory elements applicable to the given corporate form, the owners—assisted by our legal services—may define the fundamental principles of their Hungarian company within the framework of the law, tailored to their specific needs.

Once all required documents are available, our office initiates the company registration procedure.

For detailed regulations applicable to the various corporate forms, please contact our office. Feel free to reach out to us with confidence so that we may help set your business on the path to success.