Personal Data Required for Company Formation

Personal Data Required for Company Formation, Taxation and Contracting in Hungary

What Is Valid, What Is Not, and When Translation Is Required

In the Hungarian legal system, one of the most important—yet often underestimated—areas of business operations is the proper handling of personal data and documentation. In cases involving foreign shareholders, managing directors, or international contractual partners, it is quite common for a company formation or tax procedure to stall not because of business issues, but due to formal deficiencies.

Hungarian authorities operate a system that is fundamentally document- and form-oriented. This means that, in addition to substantive accuracy, great importance is placed on whether the data appear in the required documents accurately, consistently, and in the appropriate language. Even a minor discrepancy such as a differently spelled name or an improper translation can easily result in rejection or significant delays.

This overview explains what personal data and documents are required under Hungarian law, what authorities accept, and when certified translations or additional authentication are necessary.

The Core Logic of the Hungarian Legal Environment

Hungarian administrative and corporate procedures are based on two main principles: formal compliance and clear identifiability.

Formal compliance means that documents must strictly meet legal requirements. It is not enough for a document to be “substantively correct”; the appropriate language, proper certification, required data, and formal criteria all matter.

The principle of clear identifiability means that authorities must be able to identify the person or company without any doubt. For this reason, the following issues can cause serious problems:

• different name spellings across documents,
• incomplete personal data,
• use of abbreviations or nicknames,
• mismatched addresses or birth details.

The system is therefore not necessarily complicated, but it is highly consistent: the same data must appear in the same form everywhere.

What Personal Data Are Required for Company Formation?

During company formation in Hungary, detailed personal data are required for shareholders, managing directors, and beneficial owners.

The most important data typically include:

• full name as in the passport or ID,
• birth name,
• place and date of birth,
• mother’s maiden name,
• residential address,
• nationality,
• identification document details.

For Hungarian citizens, this is usually supplemented by the personal ID number, address card, and tax identification number. For foreign individuals, the passport is the primary identification document, and in certain cases, a Hungarian tax identification number must also be obtained.

It is important that personal data appear in exactly the same form across all documents. For example, if a middle name appears in one document but not in another, this may raise questions from the authorities.

What Identification Documents Are Accepted?

For personal identification, Hungarian authorities generally accept official documents issued by a state authority.

For foreign individuals, the safest option is:

• a valid passport.

For EU citizens:

• a national ID card is also acceptable.

The following are generally not suitable as primary identification:

• driver’s licenses,
• student ID cards,
• expired documents,
• unofficial identification.

Authorities focus on whether the document:

• is valid,
• contains clearly readable data,
• and unambiguously identifies the person.

The Role of Proof of Address

Proof of address is often required, particularly for tax or anti-money laundering purposes.

Generally accepted documents include:

• utility bills,
• bank statements,
• official residence certificates,
• residence permits.

The main requirements are that the document:

• is not older than three months,
• contains the full name,
• clearly shows the address.

Language Requirements: When Are Foreign-Language Documents Accepted?

The official language of Hungarian administration is Hungarian. This means that, in principle, all documents in official procedures must be in Hungarian.

In practice, however, the system is more flexible. English-language documents are often accepted, especially when their content is clear. Typical examples include:

• passports,
• English-language company extracts,
• bank statements,
• multilingual official documents.

However, it is important to understand that this is not an automatic right, but rather a practical concession. If a document plays a central role in the procedure, the authority may require a Hungarian translation at any time.

When Is Translation Mandatory?

Certified translation is typically required when:

• the document is not in Hungarian or English,
• the authority cannot clearly interpret it,
• the document is essential to a legal or tax procedure.

Typical examples include:

• foreign company extracts,
• articles of association,
• powers of attorney,
• court or administrative documents.

What Types of Translations Are Accepted?

Hungarian authorities generally accept only certified translations.

These include:

• translations prepared by the Hungarian Office for Translation and Attestation (OFFI),
• translations by certified translation agencies,
• in certain cases, translations certified by a Hungarian lawyer.

The following are not accepted:

• self-made translations,
• automated translations,
• uncertified versions.

Apostille and Legalization

If a document originates abroad, additional authentication may be required.

An apostille is generally necessary when:

• the document comes from outside the European Union,
• and it is used in a Hungarian legal procedure.

This commonly applies to:

• powers of attorney,
• foreign corporate documents,
• official certificates.

If the issuing country is not a member of the Hague Apostille Convention, consular legalization is required instead.

Language of Contracts in Hungary

Under Hungarian civil law, the parties are free to choose the language of their contract. This means that a contract may be entirely in:

• English,
• German,
• or any other language.

Problems usually arise only when the contract must be presented before a court or authority. In such cases, a Hungarian translation may be required.

For this reason, bilingual contracts are common in practice. These include both Hungarian and English versions and specify which language prevails in the event of a dispute.

Language of Accounting and Tax Documents

Under Hungarian accounting rules, bookkeeping must be understandable to the authorities.

This does not necessarily mean that every document must be in Hungarian, but it does mean that it must be available in Hungarian if requested.

A foreign-language invoice is usually acceptable if:

• its content is clear,
• the accountant can properly record it.

However, during a tax audit, the tax authority may request a Hungarian translation.

Common Mistakes in Practice

Most delays or rejections do not result from legal interpretation issues, but from formal errors. Common problems include:

• different name spellings across documents,
• expired passports,
• uncertified powers of attorney,
• missing apostilles,
• improper translations.

Practical Advice for Foreign Entrepreneurs

Most issues can be avoided with a few simple rules:

• always use the name exactly as shown in the passport,
• ensure identical data across all documents,
• use English-language documents where possible,
• obtain apostille for powers of attorney when required,
• arrange certified translations when necessary.

The Hungarian legal and tax system is formally strict but highly predictable. If personal data and documents are properly prepared, company formation and operations are usually fast and smooth.

Most problems do not arise from complex legislation, but from inconsistent data, missing translations, or improper authentication.

Proper documentation at the beginning of the process can save significant time and cost for entrepreneurs.