Why open a company in Hungary in 2026?
Hungary is currently one of the most competitive destinations in Europe for Italian entrepreneurs who want to optimize their corporate structure. With a corporate flat tax of 9% — the lowest in the European Union — and a fast and efficient incorporation system, the KFT (Korlátolt Felelősségű Társaság) represents the Hungarian equivalent of the Italian SRL (Limited Liability Company).
If you are considering expanding your business in Europe or optimizing your tax burden legally and in compliance with EU regulations, this guide provides everything you need to know.
What is a Hungarian KFT?
The KFT is the most common company form in Hungary for small and medium-sized enterprises. It offers:
- Limited liability up to the contributed capital
- Minimum capital of 3,000,000 HUF (approximately 7,500 EUR)
- Corporate tax rate of 9% on profits
- Possibility of remote management with a notarized power of attorney
- Access to the European single market
KFT vs. Italian SRL: direct comparison
| Feature | Hungarian KFT | Italian SRL |
|---|---|---|
| Corporate tax rate | 9% | 24% IRES (Corporate Income Tax) |
| Minimum capital | ~7,500 EUR | 1 EUR (simplified SRL) |
| Incorporation time | 1-5 days | 2-4 weeks |
| Annual accounting costs | Low | Medium-High |
| Access to EU market | Yes | Yes |
How to open a KFT in Hungary: step-by-step procedure
1. Choice of company name
The name must be unique and verified in the Hungarian company register (Cégbíróság). It must contain the suffix Kft.
2. Drafting of the articles of association
A Hungarian notary drafts the articles of association in Hungarian. If you are not physically present in Hungary, you can grant a notarized power of attorney to a local representative.
3. Deposit of share capital
The minimum capital of 3,000,000 HUF must be deposited into a temporary bank account in the name of the company under formation. At least 50% must be paid upon incorporation.
4. Registration with the Company Court
The notary electronically submits the documentation to the Company Court. Registration takes place within 1-5 working days.
5. Opening of the definitive bank account
With the company registration number, it is possible to open a business account with major Hungarian banks (OTP Bank, K&H, Raiffeisen) or international banks with a local presence.
6. Tax and VAT registration
The company is automatically registered with the Hungarian Tax Authority (NAV). VAT registration is mandatory if turnover exceeds certain thresholds.
Costs of opening a KFT
- Minimum share capital: approximately 7,500 EUR
- Notary fees: 500-1,000 EUR
- Registration fees: approximately 100 EUR
- Consultancy and assistance: 1,000-2,000 EUR
- Estimated total: 9,000-11,000 EUR (including capital)
Compliance and economic substance requirements
To benefit from Hungarian taxation legally and in compliance with OECD regulations and the ATAD directive, it is essential that the KFT has a real economic substance in Hungary:
- Effective registered and operational office
- Resident director or director with documented presence
- Real economic activity carried out in Hungarian territory
- Proper accounting and documentation
Without these requirements, there is a risk of the CFC rules being applied by the Italian Tax Authority.
Frequently Asked Questions
Can I open a KFT without moving my residence to Hungary?
Yes, but it is necessary to carefully assess the tax implications. Without Hungarian tax residency, income could be taxed in Italy. We always recommend personalized advice.
How long does the entire process take?
With complete documentation, registration takes 1-5 days. The entire process, including banking and accounting setup, typically takes 3-6 weeks.
Is it necessary to know Hungarian?
No. All documentation can be handled in Italian or English through our team.
Why choose Elevate Advisory Group
We specialize exclusively in cross-border corporate structuring for Italian entrepreneurs in Hungary. We offer an end-to-end service that includes full KFT incorporation, domiciliation and registered office in Budapest, assisted bank account opening, ongoing accounting and tax compliance, and support for tax residency and entrepreneurial visas.
Contact us today for a free consultation and find out how to structure your business legally, efficiently, and advantageously.
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