What is company registered office service?
The company registered office service (in Hungarian: székhely-szolgáltatás) is a service that allows a company to have a registered office in Hungary without needing its own physical office. It is a mandatory requirement for the formation of any Hungarian company, including the KFT.
Why is a registered office mandatory in Hungary?
Hungarian corporate law stipulates that every registered company must have a registered office within the national territory. This registered office is entered in the Company Register (Cégjegyzék) and serves as the official address for:
- Official communications and legal notices
- Correspondence with the Tax Authority (NAV)
- Receipt of legal documents
- Publication in the public company register
How the registered office service works
The registered office provider (such as Elevate Advisory Group) provides its address as the registered office of your KFT. The service typically includes:
- Registered address in the Hungarian Company Register
- Receiving and sorting official mail
- Managing communications with Hungarian authorities
- Support for tax inspections and administrative audits
Registered office vs. physical office: when to choose which
The registered office service is the ideal solution for:
- Holding or participation companies
- Consulting or digital service activities without local employees
- Entrepreneurs who manage their business remotely
- Initial phase of testing the Hungarian market
A physical office becomes necessary when local employees are hired, clients are received on-site, or production activities are carried out in Hungary.
Economic substance and CFC regulations
A critical aspect to consider is the Italian Controlled Foreign Companies (CFC) regulations. To prevent the Italian tax authorities from considering the KFT a "shell" company, it is essential that the company has real economic substance in Hungary. This means:
- A director who effectively performs their duties from Hungary
- Strategic decisions made in Hungary
- Contracts and commercial relationships managed locally
Elevate Advisory Group supports its clients in proper structuring to ensure full regulatory compliance.
Costs of registered office service in Hungary
Costs vary depending on the provider and the services included. In general:
- Basic registered office service: starting from 300-500 EUR/year
- Registered office service with mail management: 500-800 EUR/year
- Complete packages (registered office + accounting + local director): upon request
How to get started
Elevate Advisory Group offers company registered office services in Budapest with addresses in prestigious areas of the city. The service is included in our KFT formation packages or available separately for already established companies. Contact us for a personalized quote.
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