Why Every Foreign Company Needs an Accountant in Hungary – Even When the Company Is “Silent”

This overview offers a calm, structured perspective on why accounting is not simply a formality in Hungary, even for foreign-owned companies that appear "inactive".

In our previous article, we explained why foreign founders most often choose the Kft. (limited liability company) structure when entering the Hungarian market.
What many find surprising, however, is that a Hungarian company does not "come to life" only once it generates revenue.

Here, a company becomes an active participant of the system from the moment it is registered.

Not because the rules are strict — but because the system is continuous.

This is where most misunderstandings begin.

A Hungarian Kft. becomes a taxpayer the moment it is registered — even with no real activity yet

Foreign founders often assume that as long as the company:

• has no clients,

• issues no invoices,

• has no employees,

• has no transactions,

…there is nothing to do.

In Hungary, this is not the case.

A newly incorporated Kft. is treated as an existing, live entity in the tax system.
This does not mean that the company owes tax — only that it must be present in the administrative structure.

This presence includes:

• receiving NAV (tax authority) notices,

• ensuring the Company Gateway (Cégkapu) is monitored,

• fulfilling deadlines even with no revenue,

• preparing the mandatory annual report, (This annual report must be submitted and published through Hungary's official company disclosure system.)

• reporting changes if anything in the company's structure or activity shifts.

It is administrative continuity, not financial activity, that matters.

"But my company is exempt from VAT — does that make things simpler?"

In some ways, yes.
The alanyi adómentes (VAT-exempt) status does reduce the number of VAT-related obligations.

But an accountant is still necessary, because accounting in Hungary is not synonymous with VAT.

There remains:

• Company Gateway communication,

• NAV correspondence,

• basic bookkeeping structure,

• preparation of the annual report,

• bookkeeping of any bank movements once the account is opened,

• compliance steps if the company changes anything in its profile.

In other words: having no revenue does not mean having no responsibilities.

Hungarian administration does not distinguish between "active months" and "inactive months" in the way many foreign founders expect.

What an accountant actually represents for a foreign-owned company

A Hungarian accountant does more than record numbers.
They provide the kind of operational stability that a foreign owner cannot realistically maintain alone.

This includes:

• keeping the company compliant,

• interpreting NAV notices,

• monitoring deadlines,

• identifying changes that require action,

• maintaining a consistent administrative footprint.

For someone who does not live in Hungary — or who does not speak the language —
this is not a luxury.
It is the quiet foundation that prevents small issues from turning into real problems.

The most common misunderstanding among foreign founders

Many foreign clients genuinely believe:

• "I'll find an accountant later."

• "There is nothing to do yet."

• "No invoices, no administration."

But in Hungary: the obligation to maintain accounting does not begin with revenue — it begins with registration.

This is not intuitive internationally, but it is one of the core features of the Hungarian system.

"So how much does accounting cost?" — an honest answer

This is a natural question, and a reasonable one.
But there is only one accurate and responsible answer:

👉 The monthly fee depends entirely on the actual work required.

It varies by:

• the number of invoices,

• whether the company has employees,

• the chosen taxation method,

• the volume of communication needed,

• the level of administrative support required.

There is no universal price.
The often-cited 200–300 EUR figures on the internet may or may not apply — they can be realistic in some cases, unrealistic in others, but they are not a standard.

The real question is: Who can provide stable, clear, English-friendly accounting from the very beginning?

We work with several reliable partner accountants who already have experience with foreign owners.
Our clients are free to choose: based on their own research, a personal meeting, or our recommendations — whatever feels right.

Accounting in Hungary is a real monthly operational cost,but the absence of an accountant usually costs far more.

Frequently asked questions

Do foreign-owned companies in Hungary need an accountant even if they have no activity?
Yes. Under Hungarian law, a company must maintain accounting records and submit its obligatory reports even if no invoices or transactions occur. Compliance is tied to the company's existence, not its revenue.

What does "no activity" mean from an accounting perspective?
A company without transactions may prepare a simplified report, but the requirement to file an annual financial statement remains. This ensures that the company maintains a compliant administrative status throughout the year.

Why do foreign founders often misunderstand these obligations?
In many jurisdictions, an inactive company can be placed on hold. Hungary works differently: the compliance framework continues from the moment of registration. For a founder this may be unfamiliar, while for an accountant it is routine.

If you prefer to begin with structure and clarity from the start, you may reach me at

lilla.acs@dunalegal.com

If you would like to receive similar practical legal articles by email, you can subscribe here. Subscribe to LiLaw