How to register your company in Hungary: A step-by-step guide

Hungary: Expand with confidence in the heart of Europe

Hungary stands as a top destination for businesses aiming to expand in Central Europe. With its strategic location, strong economy, and business-friendly policies, the country offers a seamless entry point. The efficient registration process and openness to foreign investment create a cost-effective, accessible base for rapid growth in one of Europe’s most promising markets.

The business benefits of registering your company in Hungary

Hungary is becoming a top choice for global expansion with its strategic location and growth-friendly environment. 

Here are key reasons why it’s an ideal option for your business:

• Maximize profitability with affordable operations and skilled labor.
• SMaximize profitability through affordable operating costs and highly skilled labor.
• Streamline the registration process via the efficient Court of Registration system.
• Take advantage of government incentives designed to attract foreign investments and boost innovation.
• Benefit from modern infrastructure and specialized industrial zones that support business growth.
• Tap into a growing market with strong consumer demand and economic stability.
• Navigate regulatory compliance with ease, thanks to Hungary’s clear and business-friendly policies.

Hungary presents an ideal mix of growth opportunities and cost-effectiveness, making it a strategic base for businesses targeting the Central European region.

In the next section, we’ll explore various pathways to get started, including traditional company registration, licensing requirements, and Employer of Record (EOR) solutions, to help you choose the approach that aligns best with your goals.

What are the options for setting up a business in Hungary?

Businesses looking to establish themselves in Hungary in 2025 have two primary options, each tailored to different goals and operational strategies:

Businesses expanding into Hungary have two options:

1. Standard Company Registration
   Establish a legal entity through Hungary’s Court of Registration for full control but with compliance and regulatory responsibilities.
2. Employer of Record (EOR)
   The employer of record (EOR) manages onboarding, compliance, contracts, and administration, offering a faster expansion solution without a local entity.

Aspect	Court of Registration	Employer of Record (EOR)
Purpose	Creates a fully recognized legal entity, giving you total control.	Lets you hire without setting up a company, with the EOR managing all the legalities.
Control	You’re in charge of everything from operations to finances.	You manage the day-to-day, but the EOR handles the paperwork and compliance.
Compliance	You’ll need to stay on top of tax laws and corporate rules.	The EOR ensures all labor laws and tax obligations are met, on your behalf.
Setup Time	More time-consuming with required documentation and approvals.	Quick to implement, so you can start hiring right away.
Cost	Involves company setup costs, legal fees, and ongoing operational expenses.	EOR service fees, which is usually more affordable for short-term needs.
Scalability	Great for businesses planning long-term, large-scale operations.	Perfect for rapidly growing teams or testing markets without the hassle of a full setup.

Standard company registration is an excellent choice for businesses seeking full autonomy in Hungary. Meanwhile, the Employer of Record (EOR) route is perfect for companies aiming for quick market entry or workforce expansion without the complexities of establishing a legal entity.

Next, we’ll dive into how an EOR can simplify establishing your business in Hungary.

How EORs simplify Hungary company registration

Growing your business in Hungary is simpler when you have the right EOR partner to handle the heavy lifting. An Employer of Record (EOR) lets you hire local talent, run flawless payroll and ensure compliance, without the complexity of setting up a legal entity.

Here’s how an EOR streamlines your entry into Hungary:

1. Skip the lengthy process of setting up a company. The EOR becomes your legal employer, allowing you to start operations right away.
2. Let the EOR handle all the administrative tasks, such as payroll, tax filings, and employment contracts, so you can focus on scaling your business.
3. Stay fully compliant with Hungary’s labor laws, with the EOR ensuring all regulations are met, reducing your risk.
4. Save on the costs of establishing a legal entity, freeing up resources to drive your business forward.
5. Quickly grow your team without the burden of long-term infrastructure or operational commitments.
6. Tap into Hungary’s talent pool without dealing with local hiring complexities or geographical restrictions.
7. Offer competitive employee benefits that comply with local standards, with the EOR managing all the compliance aspects.
8. Lean on the EOR to navigate legal and regulatory challenges, giving you peace of mind as you expand.

Partnering with an EOR simplifies your entry into the Hungarian market, letting you focus on growth while handling legal complexities and ensuring compliance.

Next, let’s walk through the step-by-step process of registering a company in Hungary, ensuring you can navigate the setup confidently.

Step-by-step guide to registering a company in Hungary

Hungary offers a streamlined company registration process that allows you to set up your business with ease. Follow these steps to ensure a smooth setup and adherence to local laws.

Step 1: Choose your business structure

Setting up a local entity in Hungary can be complex, but partnering with an Employer of Record (EOR) streamlines the process. The EOR becomes the legal employer, managing recruitment, payroll, tax filings, and compliance with Hungarian labor laws, so you can focus on business growth without the administrative burden.

If you choose to establish a local entity, selecting the right business structure is crucial as it will determine your tax obligations, legal responsibilities, and operational flexibility.

Common business structures in Hungary include:

• Private Limited Company (Kft.): The most common choice for small to medium-sized businesses, offering limited liability to shareholders.
• Public Limited Company (Nyrt.): Ideal for larger companies planning to raise capital through public offerings.
• Branch Office: A good option for foreign companies wishing to operate locally without forming a separate entity.

Step 2: Reserve your company name

Select a unique company name that meets Hungarian regulations and verify its availability through the Hungarian Court of Registration’s online services.

Step 3: Submit necessary documentation to the Court of Registration

Once you’ve selected your business structure and name, it’s time to gather the required documentation for submission.

Required documents include:

• Articles of Association
• Proof of identity and address for the company’s directors
• Proof of the company’s registered office address in Hungary
• Name clearance certificate

Submission process:

Online: You can submit your application through the Hungarian Court of Registration’s online portal.

Offline: Alternatively, you may submit your application and documents in person at the Court of Registration.

Step 4: Open a business bank account

Opening a local bank account is necessary for conducting transactions, paying taxes, and fulfilling financial obligations.

What you’ll need:

• Company registration certificate
• Articles of Association
• Identification documents for directors and authorized signatories
• Proof of registered office address

Opening a business bank account in Hungary involves complex paperwork, but an EOR eliminates the need for this entirely. The EOR manages your payroll, handles payments in Hungarian Forints (HUF) or other currencies, ensures compliance with Hungary’s tax regulations, and oversees global payroll, allowing you to focus on growing your business without the hassle of setting up a local bank account.

Step 5: Register for taxes

Compliance with Hungary’s tax system is essential for smooth operations.

Key tax registrations include:

• Corporate Tax: Mandatory for all businesses.
• VAT Registration: Required if your business surpasses the taxable turnover threshold, which varies by industry.
• Payroll Tax: If you plan to hire employees, registering for payroll taxes and social security contributions is a must.

Following these steps will help ensure your business is legally registered and compliant in Hungary.

Next, let’s take a look at the costs involved in registering your company, so you can plan your budget effectively.

The real cost of registering a business in Hungary

For entrepreneurs looking to set up a company in Hungary, understanding the associated costs is key to planning. Here’s a breakdown of the typical expenses involved:

1. Registration costs

• Court of Registration fees: Fees for registering a company with the Hungarian Court of Registration vary, typically ranging from HUF 50,000 to HUF 100,000 depending on the business structure.
• Legal and documentation fees: Drafting the necessary founding documents, including the Articles of Association, can cost anywhere between HUF 40,000 and HUF 60,000.
• Name reservation fee: Reserving a unique company name will generally cost about HUF 10,000 to HUF 15,000.
• Stamp duty: Expect to pay between HUF 5,000 and HUF 10,000 for stamp duties on official documents.

2. Annual maintenance costs

• Accounting and auditing services: Depending on the size and complexity of your business, accounting fees typically start around HUF 100,000 annually, with larger businesses paying more.
• Tax filings: Filing corporate taxes, VAT, and other required submissions usually costs between HUF 50,000 and HUF 75,000 annually.
• Registered office renewal: The annual cost of maintaining a registered office address is typically around HUF 20,000 to HUF 30,000.

3. Additional considerations

• Banking services: Setting up a corporate bank account might involve an initial setup fee, which can vary depending on the bank you choose.
• Compliance costs: Staying compliant with Hungarian labor and tax laws may require ongoing legal and accounting services, adding to your operational costs.

Working with an Employer of Record (EOR) can significantly reduce the costs associated with business registration. With an EOR handling payroll, tax filings, and compliance, you can streamline your operations under one predictable fee.

Next, let’s compare the cost savings of using an EOR versus the traditional entity registration approach in Hungary.

Cost comparison: standard registration vs. EOR in Hungary

Here’s a clear comparison of the costs involved in setting up a business in Hungary through traditional registration versus using an Employer of Record (EOR):

Unlike traditional company registration in Hungary, which involves high initial costs and continuous administrative responsibilities, working with an EOR streamlines the process with fixed, predictable monthly fees that handle everything from payroll to legal compliance.

Next, we’ll discuss how working with an EOR can streamline your market entry and support your business expansion in Hungary.

Make your Hungary expansion effortless with Multiplier

Breaking into the Hungarian market is simple with Multiplier’s EOR solution. Focus on driving your business forward, while Multiplier manages the paperwork, payroll, and compliance. 

Here’s what Multiplier offers:

1. Seamless access to Hungary’s talent pool
   Hungary offers a skilled, cost-effective workforce that’s ready to help you scale. With Multiplier, you can tap into the Hungarian talent pool without the complexities of legal registration. Our HR experts take care of everything, from compliant contracts to smooth onboarding, ensuring your business grows seamlessly from day one.
2. Effortless payroll management
   Navigating Hungary’s tax laws, social contributions, and payroll regulations can be time-consuming. With Multiplier, you can manage Hungarian payroll in real-time, ensuring accuracy in tax filings, payouts, and reporting—so you can focus on what matters most: your business.
3. Streamlined HR Operations
   Simplify your HR processes in Hungary with Multiplier’s all-in-one platform. From onboarding to expense management and leave tracking, Multiplier provides full visibility and control over your teams in Hungary. Managing your workforce has never been easier or more efficient.
4. Compliance Made Simple
   Hungary’s labor laws and tax requirements can be complex and time-consuming to navigate. Multiplier helps you handle all compliance aspects—from employment contracts to payroll taxes—so you don’t have to. 
5. Tailored Benefits to Attract Talent
   Stay competitive in Hungary’s talent market by offering customized, locally optimized benefits. Multiplier handles the administrative tasks, so you can offer attractive perks without the added complexity. Empower your team with the benefits they need to thrive.
6. Reliable Support, Always
   With 24/5 expert support, GDPR compliance, and SOC 2-certified security, Multiplier ensures your business and employees are always protected. 

Multiplier simplifies your entry into the Hungarian market by handling payroll, compliance, and onboarding. With the entire operational framework taken care of, you can focus on scaling your business quickly and efficiently, ensuring full compliance with Hungarian labor laws.

Book a Demo today and see how effortless your Hungary launch can be with Multiplier’s EOR services.