Company Formation in Hungary from Abroad: What Can Be Done Online and When Is Personal Presence Required?

Do you live abroad and want to set up a company in Hungary? One of the first questions is usually whether you need to travel to Budapest for the incorporation or whether the process can be handled remotely.

This is particularly important for entrepreneurs who live outside Europe, need a visa to enter Hungary, or plan to establish a company with business partners living in different countries.

In many cases, company formation in Hungary from abroad can be organised without the founder having to travel to Hungary for the actual company registration.

The preparation, consultation with the lawyer and, under appropriate conditions, even the signing of the incorporation documents can be handled remotely.

However, opening a business bank account in Hungary is a separate procedure with its own identification, due diligence and documentation requirements.

For this reason, it is advisable to plan the entire process before the incorporation begins.

It should be clarified who will own the company, who will act as managing director, who will represent the company, how the documents will be signed and under what conditions the selected bank will accept the company as a client.

This guide is primarily intended for foreign entrepreneurs who are planning to establish a Hungarian Kft, the standard form of limited liability company in Hungary.

Can a foreigner set up a company in Hungary?

As a general rule, both foreign individuals and foreign companies can establish and own a Hungarian Kft.

A foreign shareholder may even own 100% of the company.

Foreign nationality alone does not normally require the involvement of a Hungarian co-owner.

However, during the preparation process, it is important to check whether any specific restrictions or approval requirements apply to the person, investment or planned business activity.

It is also important to distinguish between company ownership and personally working in Hungary.

Establishing a company in Hungary does not automatically provide the owner with a Hungarian residence permit or the right to work in Hungary.

If the shareholder later intends to move to Hungary, work as managing director or personally perform other activities for the company, the relevant immigration and employment requirements must be examined separately.

During the initial consultation, it is therefore useful to clarify whether the founder will participate only as an investor, manage the company from abroad or personally work in Hungary.

What information is required for company formation in Hungary?

A smooth company formation in Hungary starts with accurate and complete preparation.

Before the incorporation documents are prepared, the following points should normally be clarified:

• proposed company name,
• planned business activities,
• registered office,
• ownership percentages,
• identity of the managing director,
• method of company representation.

The founders and managing director should also prepare their identification documents, residential address information and any tax identification data required for the procedure.

If the shareholder is a foreign company, additional documents may be required to prove the existence of the company, its authorised representatives and its ownership structure.

The exact scope of the required documents will be determined by the lawyer handling the incorporation.

From a practical point of view, it is also useful to prepare a short and clear description of the planned business.

This should explain what the company intends to sell, who its customers will be, which countries it expects to trade with and approximately what level of turnover it plans.

This information may also be useful during the preparation for opening a corporate bank account in Hungary.

A specific business activity description is usually much more useful than a broad statement such as “trading and consulting”.

An IT consulting company, a component importer and an e-commerce business may face different administrative and compliance requirements.

Finalise the ownership structure before incorporation

It is advisable to use consistent information throughout both the legal incorporation process and the banking procedure.

If the company is initially prepared with one individual shareholder but a foreign company later enters the ownership structure, new documents and additional verification may be required.

For this reason, the ownership structure should ideally be finalised before the incorporation documents are completed.

Where a foreign company will become a shareholder, it should also be established in advance who is authorised to sign on behalf of that company and which company register document, corporate resolution or other record proves this authority.

Proper preparation can help avoid unnecessary delays during the company registration process in Hungary.

How does remote lawyer identification and signing work?

Even during remote company formation in Hungary, the lawyer must verify the identity of the client and confirm that the declarations included in the documents reflect the client’s actual intention.

Remote identification therefore involves more than simply arranging a video call.

The procedure used must comply with the applicable legal and professional requirements.

Identification and signing are separate steps.

Under the appropriate procedure, a previously identified person may be able to sign or acknowledge a signature before the lawyer using a suitable audio and video transmission and recording system.

In practice, the lawyer will inform the client in advance about the required identification documents, technical conditions and signing procedure.

A stable internet connection, functioning camera and properly lit environment are recommended.

If original paper documents are required, the time needed to send them by post or courier should also be taken into account.

Where electronic signatures are used, their validity and compatibility with the lawyer’s procedure should be checked in advance.

A scanned signature or a PDF returned by email does not automatically replace the legally required signing process.

What does remote incorporation mean in practice?

The founder will normally first receive draft company documents, review the information and request any necessary amendments.

Particular attention should be paid to the ownership percentages, rules of representation, powers of the managing director and conditions relating to the capital contribution.

Before signing, all final documents should ideally be fully reviewed and understood by the parties involved.

If the founder does not speak Hungarian, the language of the consultation and the method used to ensure proper understanding of the documents should also be agreed in advance.

Bilingual documents can make the procedure easier, but the existence of a translated version alone does not necessarily resolve every legal interpretation issue.

Any point that may affect the future operation of the company should be clarified before the documents are signed.

When are translation, notarisation or Apostille required?

When establishing a company from abroad, it is not advisable to automatically notarise or Apostille every foreign document.

The required form of each document should first be confirmed with the lawyer handling the incorporation.

The requirements may depend on:

• the type of document,
• the country where it was issued,
• the way it will be used in Hungary.

Foreign public documents may require an Apostille, diplomatic legalisation or Hungarian translation.

However, international conventions or specific legal rules may provide exemptions in certain cases.

Reviewing the documentation in advance can therefore help avoid unnecessary translation, authentication and legalisation costs.

Does a Hungarian company need a registered office in Hungary?

Yes. Every Hungarian company must have a registered office in Hungary.

This does not necessarily mean that the company must rent its own physical office.

Depending on the circumstances, a professional registered office service in Hungary may be used.

This can be particularly practical for companies whose shareholders and managing directors live permanently abroad.

The registered office also plays an important role in receiving official correspondence.

It is advisable to agree in advance how official letters will be received, how the managing director will be notified and how documents will be scanned and forwarded.

However, a registered office service does not solve every operational requirement.

If the business activity requires a warehouse, retail premises, licensed operating location or another physical facility, these arrangements must be handled separately.

Opening a business bank account in Hungary

The opening of a business bank account in Hungary should ideally be planned from the beginning of the company formation process.

The bank performs its own customer due diligence independently from the lawyer.

It may examine the company, its planned business activities, representation, ownership structure and beneficial owners.

The bank may also request information about the source of funds and the purpose of the banking relationship.

The identification performed by the lawyer does not automatically replace the bank’s own identification requirements.

The bank may request, among other things:

• company documents,
• signature specimens,
• identification documents of managing directors,
• identification documents of shareholders,
• documents relating to persons authorised to operate the account.

Where the managing director is foreign or the ownership structure is more complex, it is particularly important to clarify in advance who must appear personally at the bank.

The possibility of submitting documents online or booking an appointment electronically does not automatically mean that the entire bank account opening process can be completed remotely.

The final decision on whether the bank accepts the client and opens the account is made by the bank itself.

What should you clarify with the bank before travelling?

Before arranging a trip to Hungary, it is advisable to confirm whether the presence of the managing director is sufficient, whether the shareholder must also attend, which foreign documents are accepted, whether certified translations are required and how an absent beneficial owner will be identified.

It is also useful to ask which documents can be submitted in advance and when online banking access and account permissions can be set up.

If the company expects to receive income in several currencies, such as EUR and USD, this should also be mentioned during the first banking consultation.

Do all shareholders need to travel to Hungary?

Not necessarily.

The shareholder, managing director and person authorised to operate the bank account can be different individuals.

The fact that someone owns shares in the company does not automatically mean that they must personally appear at the bank.

For example, the owner may live outside Europe and be unable to travel to Hungary, while another person appointed as managing director may be able to travel to Budapest.

If the company’s representation rules allow this and the bank accepts the structure, the managing director may be able to handle the bank account opening.

However, this does not automatically give the absent shareholder online banking access or the right to operate the account.

These permissions must be arranged separately, and the bank may still request identification documents and information relating to the absent owner.

Shareholder, managing director and authorised representative

Anyone planning to set up a Hungarian Kft should clearly understand the difference between these roles.

The shareholder exercises the rights connected to their ownership interest in the company.

The managing director is responsible for managing and representing the company.

The managing director may also be a shareholder, but this is not compulsory.

A business partner therefore does not necessarily need to receive shares simply because they will act as managing director.

An authorised representative, on the other hand, may only act within the specific scope of the authority granted under a power of attorney.

A power of attorney for certain banking matters does not automatically make that person a managing director.

Can a foreign fintech account replace a Hungarian business bank account?

A foreign IBAN or multi-currency business account can be useful for an internationally active company.

However, such an account does not automatically prove compliance with the Hungarian requirement relating to domestic payment accounts.

According to the rule referred to in the source material, a domestic legal entity must maintain at least one domestic payment account.

The first such account must be opened within fifteen days after the company’s tax number is communicated.

For this reason, the legal status of both the financial service provider and the specific account should be reviewed.

What is the minimum share capital of a Hungarian Kft?

The minimum share capital of a Hungarian Kft is HUF 3 million.

Establishing the company from abroad does not remove this requirement.

The method and timing of the capital contribution must be determined in the company’s constitutional documents within the applicable legal framework.

The possibility of making the contribution later does not mean that the obligation itself is cancelled.

It is also important to distinguish between the company’s share capital and the service fees relating to the company formation.

Share capital is contributed to the company itself. It is not the fee paid to the lawyer or company formation service provider.

The initial budget should therefore separately include:

• share capital,
• legal fees,
• registered office costs,
• accounting fees,
• translation costs,
• authentication or Apostille costs,
• possible courier and document delivery expenses.

Accounting in Hungary for foreign-owned companies

Accounting in hungary can also be organised efficiently where the shareholders and managing director live abroad.

Invoices, bank statements and other documents can generally be provided digitally, while communication with the accountant can be handled online.

FirmaX Hungary’s accounting services include, among other things, monthly bookkeeping, tax returns and preparation of annual financial statements.

At the beginning of the cooperation, it should be clearly determined who will upload invoices and bank statements, who will monitor official electronic correspondence and who will provide the information required for tax returns.

The possible tax consequences of managing the company from abroad should also be reviewed at an early stage.

Plan accounting before issuing the first invoice

Before the company issues its first invoice, it is useful to clarify where the customer is located, whether the customer is a business or a private individual and exactly what product or service is being supplied.

These factors may affect invoicing and VAT treatment.

If the company receives payments in foreign currencies, the accountant may need not only the invoice but also information relating to the bank transaction and the underlying business transaction.

Company formation in Hungary with FirmaX Hungary

Company formation in Hungary from abroad can be organised efficiently when legal incorporation, company representation, bank account opening and subsequent administration are planned as parts of one connected process.

Many steps can be handled remotely, including the initial consultation, preparation of incorporation documents and, under the appropriate conditions, document signing.

However, banking requirements and certain identification procedures should be planned separately.

FirmaX Hungary assists international entrepreneurs with company formation in Hungary, registered office services, preparation for bank account opening and subsequent accounting in Hungary.