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- January 16 2025
- Reading time: 6 min.
Despite sanctions and difficult times, Hungary is happy to see foreign investors and businessmen from all over the world.
Hungarians are interested in attracting investments, opening companies and creating new jobs.
For this purpose, fast conditions for company registration are specially created, new regulations were approved by the Hungarian Parliament last year. It takes from 1 day to register your new Hungarian company.
Today we have written an article for you, how to open a company in Hungary, what are the advantages of doing business, what are the taxes, what are the types of companies and how to get residence permit and residence permit on the basis of business and not only in 2025.

Author of the article: Timur Igamnazarov
CEO of the Hungarian consulting company IST Hungary

Advantages of obtaining a Hungarian residence permit by opening a company
- Low corporate taxes. Hungary offers one of the lowest corporate tax rates in the European Union – only 9%. For example, the corporate tax rate in Slovakia is from 15%, in Russia – 20%, and in France – 28%.
- Speed of business registration. The incorporation process takes only 3 – 9 days. Company registration is done in a convenient online format or at our office in Budapest.
- Government subsidies and support. Hungarian entrepreneurs can take advantage of tax deductions, which allow reducing the taxable base. There is also the possibility of tax optimization. In addition, the income tax on certain IT products is only 4.5%, which is significantly 2 times the standard rate.
- Foreign investors can register patents, trademarks and other forms of intellectual property in Hungary and the EU, which allows them to optimize taxes.
- Opportunities for economic growth. Advanced countries are actively investing in the Hungarian economy by opening branches of large companies on its territory. For example, the Chinese company BYD started the production of an electric car factory in Hungary, and the government of the United Arab Emirates allocated 5 billion euros for the development of one of Budapest’s districts for the construction of skyscrapers “Budapest City”. Foreign investments contribute to the strengthening of the Hungarian economy and to the improvement of the standard of living of its citizens. It creates favorable conditions for start-ups and entrepreneurs, provides access to modern technology and a solvent population.
- Visa-free travel to Schengen and EU countries. Hungarian residents have the possibility to stay in Schengen and EU countries. For this purpose, it is enough to have a residence permit.
- Hungary is located in the center of Europe and offers easy access to other European countries. A weekend trip to Vienna or Bratislava takes about three hours by bus or car. Ljubljana, the capital of Slovenia, is only 5 hours away by car. In 1.5-2 hours you can fly from Budapest Airport to such world capitals as Rome, Berlin, Warsaw, Sofia, Helsinki, Athens and many others.
Hungary offers the possibility of obtaining a residence permit by starting a business, which makes it attractive for foreign entrepreneurs from the Russian Federation, CIS countries and other countries of the world. Below are the main conditions and criteria for obtaining a residence permit in Hungary by setting up a business.
Who can get a residence permit in Hungary by starting a business?
- Hungarian company owners:
Foreigners who establish and actively manage Hungarian companies may apply for a residence permit. This right is granted to the founders and directors of the company if they are actively involved in the management of their company.
- Spouses of founders:
The spouse of the founder of a business may be included in the application for a residence permit.
- Number of founders:
There can be more than one founder, but the number of founders should match the scale of the business. - Individual Entrepreneurs:
Individual entrepreneurs in Hungary can obtain a residence permit under certain conditions. There is also the option of self-employed status with subsequent renewal.
Restrictions on obtaining a residence permit:
- EEA Nationals:
Citizens of European Economic Area (EEA) countries, including EU countries, Iceland, Norway and Liechtenstein, cannot obtain a residence permit by establishing a business in Hungary.
- Working in your own company:
Foreigners may work in their own company and perform certain functions.
Obtaining a residence permit in Hungary by starting a business offers many opportunities for foreign entrepreneurs, but there are a number of conditions and nuances that need to be considered. The main focus is on the active management of the business and compliance with the relevant requirements for founders and their family members.
What is the best company to open for a Hungarian residence permit?
In order to obtain a residence permit, foreigners can open a limited liability company (Ltd.), a closed joint stock company (CJSC), a cooperative or an Individual Entrepreneurship. It is also possible to purchase an existing business in Hungary under certain conditions.
Hungary offers various forms of legal entities for doing business, each with its own characteristics, requirements and advantages. Below are the main options, their characteristics, minimum capital requirements and registration fees.
1. Ltd – private limited company or Kft – Korlátolt Felelősségű társaság,
usually established for small or medium-sized businesses, such as logistics services, IT, consulting services, marketing, PR, construction and others. The authorized capital of the company is 3 million Hungarian forints (about 7,400 €).
2. Joint-stock Company (Részvénytársaság)
Description: Joint-stock companies (JSCs) are designed for large business operations and have divided their capital into shares, which allows them to attract a large number of investors.
Classification:
- Private joint-stock company (Zártkörűen Működő Részvénytársaság – Zrt.):
– Minimum authorized capital: HUF 5 million (approx. €12,000).
– Shares are not freely tradable on the stock exchange.
- Public joint-stock Company (Nyilvánosan Működő Részvénytársaság – Nyrt.):
– Minimum authorized capital: 25 million HUF (approx. €62,000).
– Shares can be registered and freely traded on the stock exchange.
Registration:
- There is a registration fee
3. General Partnership (Közkereseti Társaság)
Description: A general partnership is formed by a group of founders who actively participate in the management of the business and are fully jointly and severally liable for its obligations.
Liability: The founders are liable for the company’s debts with all their assets, which carries high risks. This is suitable for qualified entrepreneurs who are willing to take full responsibility.
Minimum Capital: No minimum capital is required to form a general partnership.
4. Limited Partnership (Betéti Társaság)
Description: This is a type of company with two types of partners: general partners (fully liable) and limited partners (liable only to the extent of their capital contribution).
Liability: The limited partner’s total liability is limited to his investment in the company, which reduces the risk for investors.
Minimum Capital: No minimum capital is required to form a limited partnership.
Individual entrepreneur (Egyéni vállalkozó)
Description: An individual entrepreneur can register as a separate legal entity. This simplifies the process of setting up a business and allows you to obtain company status.
Minimum capital: The law does not require a minimum authorized capital for this form of business.
The choice of the appropriate form of legal entity depends on the scale of the business and the level of responsibility that the entrepreneur is willing to assume. Joint stock companies are more suitable for large investments, while partnerships and individual entrepreneurship can be more flexible and less costly at the initial stage. It is important to carefully consider all the details and nuances and consult with our Hungarian business experts before making the final decision to register a business in Hungary.
Comparative table of the most common types of companies that foreign entrepreneurs can open in Hungary
Type of company | Minimum authorized capital of the company | Number of founders |
---|---|---|
Private limited company (Kft) | 3 000 000 Ft (7200 €) | minimum 1 |
Joint-stock Company (Rt) | 5 000 000 Ft (12 200 €) | minimum 1 |
General Partnership (Kkt) | 0 Ft | minimum 2 |
Limited Partnership (Bt) | 0 Ft | minimum 2 |
Individual entrepreneur | 0 Ft | maximum 1 |
How to get a residence permit by registering a business?
Step 1. Registration of a company in Hungary.
Preparation of documentation
Before starting registration, it is important to gather all the necessary documents. These include:
- The company’s Articles of Association, which must contain important information about the company, such as its legal form, the nature of its business and the details of its founders.
- Residence certificate: You must provide proof of your residence in Hungary or in the country where you reside.
Company Registration
An application for company registration is filed with the court where the company is located. The process consists of several stages:
- Clarification of the legal form of the company (e.g. private limited company – Kft).
- Preparation of all incorporation documents with the assistance of a qualified Hungarian lawyer.
- Submission of the application and payment of the relevant state duty.
Registration takes 2-3 business days on average, but the timeframe may vary depending on the workload of the courts.
Upon successful registration, the founders will receive:
- Certificate of registration.
- Extract from the Commercial Register.
Step 2. Open a bank account
Opening a current account for the company is an important step. The founders must:
- Personally appear at a bank in Hungary.
- Bring passports and the necessary documents for bank compliance.
Large banks such as OTP Bank, UniCredit, Magnet Bank, Bank of China and others offer their services for foreign clients.
Step 3. Applying for a residence permit
In order to obtain a residence permit in Hungary, business founders must properly prepare all the necessary documents.
In addition to obtaining a residence permit on the basis of company registration, it is possible to consider other types of residence permits, such as a Hungarian residence permit for investment.
Establishing a company and obtaining a residence permit in Hungary is a complex process, but it is feasible with the right approach and preparation. As each stage is accompanied by certain legal formalities, we recommend working with qualified specialists, lawyers and migration consultants. Success depends on following all procedures carefully and providing correct information at each stage.
Our Hungarian immigration experts and lawyers will advise you on all the intricacies and nuances of obtaining a Hungarian residence permit.
We have moved a large number of businessmen and entrepreneurs from all over the world to Hungary.
You can read about our cases of Hungarian residence permits by starting a company here
Thanks to its strategic location in Central Europe and its active support for start-ups and innovative projects, Hungary offers a wide range of business opportunities.
Let’s take a closer look at some of the key aspects that make the Hungarian market attractive to entrepreneurs.
1. Strategic location
Hungary is located in the center of Europe, which provides easy access to the markets of neighboring countries and the entire European economy. This makes it an excellent base for international trade and logistics. Moreover, the availability of good transportation infrastructure, including railroads and road routes, facilitates the fast and efficient movement of goods and services.
2. Support for start-ups
Hungary actively supports start-ups and innovative initiatives. Founders of new businesses can count on
- Investments from venture capital funds and business accelerators: Organizations such as the Hungarian Venture Capital Association (HVCA) help find funding for new projects.
- Incubation and acceleration programs: For example, the Startup Campus incubator program offers training in business planning skills.
3. Technology Development
The technology sector in Hungary is growing strongly and accounts for a quarter of the country’s total exports. Hungary is becoming home to a variety of high-tech companies, including international car factories such as BMW and BYD, which are opening branches and producing electric cars. This creates significant opportunities for investment and development in technology and sustainable manufacturing.
4. Tourism and services
Tourism plays an important role in the Hungarian economy. The country is considered one of the most popular tourist destinations in Europe. Budapest, with its famous sights such as the Chain Bridge and the Parliament building, attracts millions of tourists every year. Medical tourism is also growing, especially due to the country’s thermal springs. Even before the pandemic, Hungary was attracting up to 60 million tourists a year, creating opportunities for investment in tourism infrastructure and the hotel industry.
5. Attractive tax policy
Hungary offers some of the lowest corporate tax rates in Europe, making it attractive to foreign investors. Favourable tax conditions help companies retain more profits for reinvestment in business development and growth.
6. Skilled labor force
Hungary has a highly skilled labor force, which is especially important for companies operating in the technology sector. Local universities and educational institutions train specialists in engineering, IT and other technologies, which provides a growing labor market for startups.
Hungary offers many business opportunities, including support for start-ups, a developed technology infrastructure, a vibrant tourism sector and a favorable tax environment. The combination of all these factors creates a dynamic environment conducive to the growth and development of new businesses.
When can obtain Permanent Residence in Hungary?
After 3 years of living and doing business in Hungary, the founders and directors of a company can apply for a permanent residence permit.
Hungarian citizenship can be obtained after obtaining a permanent residence permit after several years of residence in the country. With a Hungarian passport, you can travel to over 170 countries without a visa.
How else to get a residence permit in Hungary?
There are many ways for foreigners to obtain a residence permit in Hungary. Here are some of the most common reasons for obtaining a permit:
1. Hungarian Residence Permit for Investment (Hungarian Guest Investor Program)
Investors can obtain a residence permit for up to 10 years by investing in the Hungarian economy. This can be
- Buying securities of a real estate fund manager of Hungarian companies.
– The investment is from 250.000 €. - A charitable donation to a Hungarian university to support educational institutions – 1,000,000 €.
– This type of residence permit is often called «Hungarian Golden Visa» and is designed to attract foreign investment.
2. Digital Nomad (White Card) Visa
This visa is for digital nomads and freelancers. To get this visa you need to
- Have a stable income from remote work, at least 3000 € per month.
- Provide documents proving your professional activity.
3. By marriage and family reunification
Relatives of Hungarian citizens and permanent residents can obtain a residence permit:
- Spouses of Hungarian citizens.
- Financially dependent children (e.g. minors).
- Parents dependent on a Hungarian citizen.
4. Repatriation
Foreigners who can prove their Hungarian origin are eligible for repatriation. The repatriation program is designed for ethnic Hungarians who lost their citizenship due to political changes:
- Applicants receive a residence permit for a period of 5 years.
- Proof of basic Hungarian language skills is required.
5. Employment in a Hungarian company
Foreigners who have an employment contract with a Hungarian employer can obtain a residence permit. It is important to consider:
- The need to provide proof of professional qualifications.
- The residence permit is issued for the duration of the employment contract.
6. Research and study
Students who are accepted to study at Hungarian universities can obtain a residence permit:
- Students enrolled in a bachelor’s, master’s or doctoral program.
- Applicants for preparatory courses.
7. Refugee or humanitarian grounds
People in need of protection due to persecution or war can apply for asylum, which includes obtaining a residence permit.
Each of these paths has unique requirements and processes, so it is important to prepare thoroughly and consult with a lawyer or migration specialist to choose the most appropriate option.
8. Residence permits for researchers, which can be obtained on the basis of scientific work.
Main provisions:
- Duration of the residence permit: from one year to several years. The duration depends on the length of the research project.
- Extension: If the research is not completed at the end of the term, the residence permit can be extended for several more years.
- Documents: The application requires a justification of the research project, an invitation from a Hungarian university or research institution, and proof of financial means for accommodation.
9. Residence permit for medical treatment
For foreign nationals who intend to undergo medical treatment in Hungary, there is a separate procedure for obtaining a residence permit. Here are the main points:
- Eligible candidates: A residence permit can be obtained by clients of Hungarian clinics, hospitals, sanatoriums who are planning medical procedures.
- Duration of the residence permit: It is issued for the period of time that is specified in the medical documents, which allows patients to conveniently organize medical programs and follow their progress.
To order consultations and services on obtaining a Hungarian residence permit through opening a company or on other grounds:
📲 Phone: +36205977777
📲 What’s App: +36205977777
📧 E-mail: business@isthungary.hu
🌐 Website: https://isthungary.hu/
📍Our office in Budapest:
Budapest, Szervita tér 8, 1052, Венгрия
✅ Subscribe to our Telegram channel: https://t.me/immigrationlivehu
Photo by IST Hungary and Agi Noscek.
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