How to register a Hungarian LLC for residency?
Published at: 27/06/2023 08:31 am
Hungary became fast the most popular destination for investors to become residents of the European Union. The principal requirement of the Hungarian residency solution is to purchase residential real estate for at least 180,000 euros, but you must also register a Hungarian company.
At Discus Holdings Ltd, we are experts in registering Hungarian companies with more than 30 years of experience. Take a look at the details of the Hungarian residency process for investors!
You must follow several steps to register a Limited Liability Company (LLC or "Kft." in Hungarian) in Hungary. Let's see the process step by step!
How to register a Hungarian LLC for residency?
Company Name: Choose a unique name for your company that complies with Hungarian regulations. You can check the availability of your chosen name on the Hungarian Company Information and Electronic Company Registration System (Cégkapu).
Articles of Association: Draft the Articles of Association, including details about the company's purpose, registered office address, share capital, management structure, and other relevant provisions. It's advisable to seek legal assistance to ensure compliance with Hungarian laws.
Share Capital: Determine the share capital required for your LLC. As of my knowledge cutoff in September 2021, the minimum share capital for a Hungarian LLC is HUF 3,000,000 (Hungarian Forints). The shareholders must pay up to 50% of the share capital during registration.
Bank Account: Open a bank account in Hungary to deposit the share capital. You will need to provide the necessary documentation and identification to the bank.
Notary Public: Visit a Hungarian notary public to authenticate the Articles of Association and sign the necessary documents. The notary public will verify your identity and witness the signing process.
Company Registration: Submit the following documents to the competent Hungarian court or the company registration office:
- Authenticated Articles of Association
- Completed company registration form
- Proof of payment of the share capital
- Identification documents of the company's directors and shareholders
Tax Registration: Register your LLC at the Hungarian National Tax and Customs Administration (NAV). You will receive a tax number (adószám) upon successful registration.
Social Security Registration: Register your employees for social security contributions at the Hungarian Central Administration of National Pension Insurance (Országos Nyugdíjbiztosítási Főigazgatóság).
Official Publications: Publish a notice about establishing your LLC in the Hungarian Official Gazette (Magyar Közlöny) within 15 days of registration.
Registering a Hungarian company takes only a couple of days. Please note that you will need expert advice to fulfil all the requirements, and your Hungarian company could help you become a resident of the European Union and also make money.