How to start a business in Hungary as a foreigner (2026)

Legal framework

Act V of 2013 (Hungarian Civil Code, Polgári Törvénykönyv) governs KFT (Kft.) formation; Act V of 2006 governs company registration procedure; FDI national-security screening under Act LVII of 2018; administered by Company Registry Courts (Cégbíróság) via birosag.hu

Key points: starting a business in Hungary

1. 01Foreign Ownership

   There are no general restrictions on 100% foreign ownership or control of a Hungarian Kft. Foreign nationals may serve as sole owner and managing director without a separate work permit for that role; no minimum local-shareholder requirement exists.

   birosag.hu njt.hu

2. 02Minimum Share Capital

   Act V of 2013 (Civil Code) sets the minimum registered capital for a Kft at HUF 3,000,000 (~€7,500). At least 50% must be paid up before registration; each individual quota must be at least HUF 100,000. Capital may consist of cash or contributions in kind.

   njt.hu e-justice.europa.eu

3. 03Registration Process & Timeline

   All company registration proceedings are conducted exclusively in electronic form through the Cégbíróság (Company Registry Court). Once the application is filed, registration is typically granted within 1-3 business days. The public company register is freely accessible at e-cegjegyzek.hu.

   birosag.hu e-justice.europa.eu

4. 04Mandatory Legal Representation

   Hungarian law requires every registration application to be submitted by a licensed Hungarian attorney (ügyvéd) or notary. Foreign founders may sign documents remotely (including via video link) and post originals, but cannot file without local legal counsel, adding cost and a coordination step.

   birosag.hu birosag.hu

5. 05FDI Screening in Strategic Sectors

   Act LVII of 2018 mandates a national-security review for acquisitions in sensitive sectors (defence, dual-use technology, energy, telecom, certain financial services). A 2023 amendment extended the review period from 30 to 45 business days and introduced a state pre-emption right for solar-energy enterprises. Out of ~590 notifications filed by mid-2025, fewer than 3% resulted in prohibition.

   investmentpolicy.unctad.org investmentpolicy.unctad.org iclg.com

6. 06Bank Account & Practical Timeline

   Opening a Hungarian business bank account is a mandatory step and generally requires in-person attendance, typically the slowest element for non-resident founders. Including attorney engagement, notarisation/apostille of foreign documents, and bank onboarding, the practical end-to-end timeline is usually 5-10 working days in-country.

   birosag.hu e-justice.europa.eu

Timeline of decisions

1. 19 Aug 2025Law
   Act L of 2025 Codifies Permanent Special FDI Screening Regime

   Hungary replaced emergency government decrees (repeatedly renewed since 2020) with Act L of 2025, a permanent statute governing the Second (Special) FDI Regime. Any investor whose ultimate beneficial owner is domiciled outside Hungary may be subject to pre-clearance before establishing or acquiring a business in designated sectors, adding a regulatory layer for foreign founders.

   Wolf Theiss

2. 23 Jun 2025Law
   Hungary Extends FDI Screening Window and Grants State Pre-emption Right

   Amendments to the General (First) FDI Regime extended the screening deadline from 30 to 45 business days and granted the Hungarian state a statutory right of pre-emption, allowing it to complete blocked deals through Hungarian National Asset Management Inc. Foreign entrepreneurs in strategic sectors now face longer approval timelines before incorporation.

   CELIS Institute

3. 1 Jul 2023Law
   Unified Legal-Persons Registry and Automated One-Hour Registration Launch

   Act XCII of 2021 entered into force, replacing separate registries with a single unified register for all companies, civil organisations, and condominiums. Formations using standard template articles now trigger an automated decision-making procedure targeting registration within one hour, with no judicial intervention required for straightforward cases.

   CMS Law

4. 1 Jan 2021Law
   Parliament Adopts Act XCII of 2021 on Registry and Registration of Legal Persons

   Hungary's Parliament enacted the most substantial overhaul of company registration since 2006, establishing a unified authentic registry for all legal entities and mandating automated registration to remove individual judicial orders from routine filings. Implementation was delayed from an original 2023 target to allow practitioners to prepare, with entry into force ultimately set for 1 July 2023.

   Noerr

5. 15 Mar 2014Law · official
   New Civil Code Integrates Company Law for the First Time in Hungarian History

   Act V of 2013 (the new Civil Code) entered into force, absorbing substantive company law into a single consolidated code, the first time in Hungarian legal history, and replacing the standalone Business Associations Act of 2006. Default rules shifted from mandatory to permissive, increasing flexibility for founders to tailor articles of association.

   ILO NATLEX

6. 1 Jan 2012Law · official
   Electronic Company Registration Extended to Second-Instance (Appeal) Proceedings

   Building on the 2008 first-instance mandate, Hungary required all second-instance company registration proceedings to be conducted electronically as of 1 January 2012, completing the full digitisation of the judicial registration process from application through appeal.

   Courts of Hungary

7. 1 Jul 2008Law · official
   Mandatory Exclusive Electronic Filing for First-Instance Company Registration

   Under the framework of Act V of 2006, all first-instance company registration proceedings became exclusively electronic as of 1 July 2008. Legal representatives must file applications through the Ministry of Justice's e-filing portal; paper submissions ceased, cutting processing time and administrative costs for new business founders.

   Courts of Hungary

8. 1 May 2004Law
   Hungary Accedes to the EU; Company Law Aligned with EU Directives

   Following Act XLIX of 2003, which amended the Companies Act to harmonise with EU law, Hungary joined the European Union on 1 May 2004. EU company-law directives on disclosure, cross-border operations, and capital protection became applicable, giving Hungarian-registered companies immediate access to the EU single market and attracting significant inbound foreign investment.

   CMS Law

9. 9 Dec 1997Law
   Act CXLIV of 1997 on Business Associations Adopted, First Post-Transition Modernisation

   Parliament passed a comprehensive new Companies Act replacing Act VI of 1988, codifying six entity types including the Kft (limited liability company) with a HUF 3 million minimum capital and the Rt (joint-stock company) at HUF 20 million. The Act tightened governance rules and introduced deemed-approved registration after 60 working days plus 8 further days if the Court failed to act, reducing registration uncertainty.

   CMS Law

10. 1 Jan 1988Law · official
    Act VI of 1988 on Business Associations, Foundational Private-Enterprise Law

    Hungary enacted Act VI of 1988, the first modern company law in the Eastern Bloc, enabling private investors to form companies and triggering widespread 'spontaneous privatisation' of state assets. This landmark legislation laid the entire legal foundation for market-economy business activity in Hungary and preceded the fall of communism by over a year.

    IMF

Sources

1. 1.birosag.hu/en/company-law-procedures
2. 2.birosag.hu/en/electronic-procedures
3. 3.njt.hu/jogszabaly/en/2013-5-00-00
4. 4.e-justice.europa.eu/topics/registers-business-insolvency-land/business-registers-eu-count
5. 5.investmentpolicy.unctad.org/investment-policy-monitor/measures/5126/hungary-transitions-temporary
6. 6.investmentpolicy.unctad.org/investment-policy-monitor/measures/5125/hungary-extends-fdi-screening
7. 7.iclg.com/practice-areas/foreign-direct-investment-regimes-laws-and-regulations
8. 8.worldbank.org/en/businessready/subnational/economy/hungary