Business forms in Hungary: choosing the best structure for your company

When starting a business in Hungary, entrepreneurs can choose one of several organizational and legal forms. Each of them has its own peculiarities, capital requirements and the level of responsibility of the founders.

1. Limited Liability Company (Kft. - Korlátolt felelősségű társaság)

• The most popular form for small and medium-sized businesses, available to both residents and non-residents (individuals and legal entities).
• The minimum authorized capital is 3 million HUF (~7,700 €).
• The liability of participants is limited to the size of their share in the company.
• Peculiarity: transfer of shares is possible only with the consent of other participants, unless otherwise stipulated by the charter.

2. Private joint stock company (Zrt. - Zártkörűen működő részvénytársaság)

• Suitable for larger projects involving equity investment.
• The minimum capital is 5 million HUF (~12,800 €).
• Shares are not traded on the stock exchange and cannot be freely sold to third parties without the consent of other shareholders.
• The liability of shareholders is limited to the value of their shares.

3. Public Joint Stock Company (Nyrt. - Nyilvánosan működő részvénytársaság)

• Optimal for large companies planning to go public or raise capital on a large scale.
• The minimum authorized capital is 20 million HUF (~51,300 €).
• Shares are freely traded on the stock market, which makes it easier to attract investors.
• Complex corporate structure (requires supervisory board, audit, etc.).

4. Branch Office of a foreign company (Branch Office)

• Allows a non-resident company to do business in Hungary under the same name as abroad.
• It is not a separate legal entity - the parent company is responsible.
• Registration in the Hungarian registry is required, but without forming a separate share capital.

5. Representative Office

• Suitable for non-commercial activities (marketing, negotiations, market research).
• Cannot conduct business activities or generate income in Hungary.
• Simple registration, but limited functions.

Which form to choose?

• Startups and small businesses → Kft. (flexibility, low requirements).
• Medium-sized businesses with investors → Zrt. (closed corporatization).
• Large companies and IPOs → Nyrt. (public offering of shares).
• Foreign companies → Branch (full-fledged operations) or Representative Office (no commercial operations).

Need help registering a company in Hungary? Leave a request for consultation - we will find the best option for your purposes!