How to Start a Business in Hungary: Complete Guide
Hungary is one of the more straightforward EU countries to start a business in — but the process still has a few steps that trip up foreign founders. Here's what actually happens.
1. Decide on your business structure
Most solo founders choose between a sole proprietorship (egyéni vállalkozás) and a limited company (Kft.). The sole proprietorship is faster and cheaper but comes with full personal liability. A Kft. requires more setup but limits your personal risk.
2. Register your business
- Sole proprietorships can typically be registered online in a single day.
- A Kft. requires drafting founding documents (often with a lawyer or notary) and registering with the Court of Registration.
- You'll need a Hungarian address for your registered office, even if you don't live there yourself.
3. Get your tax number (adószám)
Once registered, the Hungarian Tax Authority (NAV) issues your tax number. This number appears on every invoice and filing you make from that point forward.
4. Open a business bank account
You'll need a Hungarian business bank account to receive payments and pay taxes. Some banks allow remote account opening for foreign founders, while others require an in-person visit.
5. Start invoicing correctly
Hungary requires real-time electronic invoice data reporting to NAV. Using invoicing software that handles this automatically will save you a lot of manual work.
How we can help
If any of this feels overwhelming, that's completely normal — most foreign founders have questions at every step. Book a free consultation and we'll walk you through your specific situation.