Business in Hungary through Limited Liability Company (KFT) or Company Limited by Shares (RT)

If you do not want to be a sole proprietor, you can engage in entrepreneurial activity in other ways, such as:

- Limited Liability Company (KFT) - there are no restrictions on the number of founders or their citizenship, and foreigners can fully own such a company. The size of the statutory capital must be 3,000,000 Hungarian forints (7,333 euros). If there are many founders, the statutory capital might be paid in installments;

- Company Limited by Shares (RT) - Foreigners can buy shares on bearer or registered shares. Privileged shares may not exceed 50% of the registered capital, whereas percentage shares may not exceed 10% of the registered capital. The statutory capital requirement for private limited corporations is 5,000,000 Hungarian forints (EUR 12,221) and 65,000,000 (EUR 158,872.98) for joint-stock firms, which can be paid in cash or in kind.

Companies are required to pay the following taxes:

- Value Added Tax (VAT);

- Corporate Income Tax (CIT);

- Local Income Tax (LIT), and

- payroll taxes (PIT, SS).