Jurisdiction overview: Hungary
Hungary is a stable European Union jurisdiction frequently chosen for company registration in Europe, establishing operational businesses within the EU, and working with international partners. A Hungarian company allows businesses to operate legally within the European market, benefit from EU infrastructure, and build transparent relationships with banks, payment service providers, and corporate counterparties.
Opening a company in Hungary is particularly suitable for projects in IT and digital services, e-commerce, trade, logistics, consulting, manufacturing, and B2B activities, as well as for structures where EU compliance, clear corporate regulation, and access to the European banking and payment ecosystem are essential. Hungary combines formal regulatory discipline with a pragmatic and business-oriented administrative approach.
The most common legal form for foreign entrepreneurs is Kft (Korlátolt Felelősségű Társaság), the Hungarian equivalent of a limited liability company. Company formation in Hungary is available to non-residents, and 100% foreign ownership is permitted, subject to the declared business activity and standard KYC/AML procedures. The registration process typically includes the preparation of incorporation documents, provision of a registered office address, tax registration, and the setup of ongoing accounting and compliance support.
One of Hungary’s key competitive advantages is its favorable corporate tax regime. The country is well known for having one of the lowest corporate income tax rates in the European Union – 9%, making it attractive for operational companies and EU-based business structures. In practice, a local municipal business tax may also apply, with the rate depending on the municipality and the nature of the business activity.
Overall, Hungary is a strong option for companies seeking a predictable EU legal environment, transparent business regulations, access to European markets, and the ability to build a sustainable operational structure with a compliant tax and accounting framework.