Company Formation in Hungary – Clarity for Those Taking Their First Steps Here
This overview explains the practical framework of company formation in Hungary and what foreign founders can expect when taking their first steps here.
In our previous overview on residence permit applications we wrote about situations where a foreign national may choose between managing a process alone or seeking support.
Company formation in Hungary works differently.
Not because the process is more complicated.
Simply because it is not one that offers two possible paths.
Hungarian company registration is a fully electronic procedure that — by law — requires the involvement of an attorney. It is not a matter of preference, convenience or level of confidence.
It is the structure of the system itself.
For many foreign founders this comes as a surprise, especially for those who come from countries where forming a company begins with a personal appearance or an online form.
In Hungary, the process is designed to be secure, fast and highly regulated — and this framework relies on legal representation.
Why most foreign founders choose a Kft.
Among the various company forms available in Hungary, the Kft. (limited liability company) is by far the most common choice.
Not because "everyone does it", but because it feels familiar in an unfamiliar environment.
Its logic resembles structures many foreign clients already know:
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Ltd.
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GmbH
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SARL
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SRL
Clear ownership roles, separate corporate assets and limited liability create a predictable foundation.
When someone is taking their first entrepreneurial steps in a new country, familiarity is often more valuable than complexity.
How fast is the process?
On paper: very fast.
In practice: as fast as the preparations allow.
Once all required information is finalised and the documentation is in proper form, the court registration phase is typically completed within one or two business days.
For foreign founders, the timeline is influenced less by the legal process itself and more by the practicalities surrounding it:
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bank requirements and identification
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whether translations are needed
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how foreign addresses are verified
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how authorisations must be provided
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the specific documents required by each institution
These are not obstacles.
They are simply the natural features of starting something important in a country that is not yet familiar.
Related: Why Every Foreign "Silent" Company Still Needs an Accountant in Hungary
Why the presence of an attorney is part of the system — not an extra step
In Hungary, the attorney is not an optional facilitator but a structural element of the company registration process.
The electronic filing system depends on:
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attorney's electronic signature,
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secure authentication,
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certified documentation,
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and compliance within the statutory framework.
For someone arriving from abroad, this is less a formality and more a reassurance:
a system designed so that the first step into business activity is clear, valid and properly documented.
Legal representation is not there to complicate the process.
It is there to remove the uncertainty that naturally appears when someone is encountering a new legal and administrative environment for the first time.
A first step deserves clarity
Starting a company abroad is not only a legal matter.
It is a personal transition — a moment when structure and clarity matter as much as speed.
The Hungarian system offers both.
And while the process itself is fast and predictable, the value often lies in knowing that the first step is taken on solid ground.
Some processes are designed to be walked together.
Frequently asked questions
How long does it take to register a company in Hungary?
Once the necessary information is complete, the electronic filing system allows incorporation to be concluded within one or two business days. The preparation phase—collecting the required details and clarifying the structure—often takes more time than the legal step itself.
Is legal representation mandatory for company formation in Hungary?
Yes. Hungarian law requires attorneys to prepare and submit incorporation documents through the electronic filing system. This is not an optional service but a structural element of the registration process designed to ensure that filings are valid, authenticated and compliant.
What should foreign founders expect during the process?
The legal procedure is fast, but the practical timeline depends on the founder's circumstances: identification requirements, corporate structure, translations and how foreign documents must be verified. For many founders this is a first encounter with the system, while for an attorney it is a familiar, structured process.
If you would like quiet, professional guidance tailored to your situation, you are welcome to reach out at lilla.acs@dunalegal.com
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