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Company Formation Hungary



Accounting Services in Hungary

Updated on Tuesday 10th May 2022

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Accounting requirements in Hungary

Most of the available types of businesses in Hungary must comply with the accounting principles in the country and observe the general rules for taxation.
Our specialists provide complete accounting services that are developed for the needs of any company type. Businesses operating in all economic sectors can benefit from our basic accounting services.
Accounting and bookkeeping procedures in Hungary are regulated by law and they comply with international and European accounting principles.
The accounting records and financial reports for Hungarian companies must be drawn up in Hungarian and according to the accounting principles.
Our accountants in Hungary can help you submit these mandatory records and reports so that your company may not be liable to any penalties that can arise from failure to submit the necessary statements.

Does Hungary apply the IFRS standards? 

IFRS standards are international financial reporting standards that are used at a global level; they are a set of rules and regulations regarding the manner in which companies should maintain and prepare their financial documents. 
An accountant in Hungary can use the IFRS standards when completing accounting reports and documents for international companies that have set up their operations in this country. 
For instance, those who want to start the process of company registration in Hungary for a local business will not use the IFRS standards in most of the cases. 
The accountant in Hungary will be able to use the IFRS for certain categories of companies, according to the latest modifications, implemented in 2016-2017. 

What is the law on accounting in Hungary? 

If you want to open a company in Hungary, you will definitely need the services of an accountant or of a team of accountants, based on the size and the activities of your company. 
Accounting procedures must be completed by an accountant in Hungary, who has obtained the necessary qualifications in the field. Regarding the rules and laws accountants have to apply, the following are available: 
  • matters related to accounting and bookkeeping are prescribed by the Act C of 2000 on Accounting – the Accounting Act, issued by the Ministry of National Economy;
  • companies can complete simplified annual reports if they meet 2 of the 3 conditions stipulated below;
  • the company has a balance sheet of maximum HUF 500,000;
  • the company’s net revenue is limited to HUF 1,000,000;
  • the company employs a maximum of 50 employees in a financial year. 

Professional accounting services for Hungarian companies

After a company is registered in Hungary, entrepreneurs need to consider hiring an accountant that will keep any necessary records and will follow through the business activity of the company.
Investing in professional accounting services, as well as business consulting services, can prove to be of great importance to companies and a professional consultant will always be able to find the best solutions for any problem the company might incur. 
Our Hungarian company formation experts are professionals with experience in accounting, bookkeeping and legal requirements for companies in Hungary.
Not only can we provide complete services in the accounting field, but we can also offer you payroll services, financial and tax consulting services and even human resources services.

When is a company required to complete consolidated annual accounts in Hungary? 

As presented above, companies are allowed to complete simplified annual accounts, which will be prepared by an accountant in Hungary
In Hungary, companies must also prepare consolidated annual accounts, which refer to more complex financial documents, that present a very detailed image of the company. 
They are necessary for large businesses, and this is the case of structures where there is a parent company and more subsidiaries or branches. 
The procedure is necessary if the company meets 2 of the following 3 criteria (if it exceeds 2 of them): the balance sheet of HUF 2,700 million, the annual net revenue of HUF 4,000 million and the number of employees of 250 in a financial year.

Other services for your business in Hungary

Investors are also invited to address to our accountants and specialists in company formation in Hungary if they need audit services. Audit services are also available for companies that have to maintain double-entry bookkeeping systems.
While the appointment of an auditor might not be necessary if the company fulfills certain conditions, businesses can still choose to voluntarily hire an auditor.
Our Hungarian company incorporation consultants can perform qualified audits that observe the regulations set forth by the Hungarian National Auditing Standards.

What is the law on audit in Hungary? 

In certain situations, companies are required to complete audit formalities. Thus, if you plan to open a Hungarian company, we advise you to check the main requirements applicable in this case. 
Audit in Hungary has last been amended in 2016, with new regulations being applied starting with 17th of June 2016. The new law transposed the latest modifications that were introduced at an EU level. 
Audit rules also derive from the Act LXXV of 2007 on the Chamber of Hungarian Auditors, the Activities of Auditors, and on the Public Oversight of Auditors
According to these rules, an accountant in Hungary is required to start the audit procedures on a local company if 2 thresholds are met. 
The 2 thresholds refer to the company’s annual net sales (the minimum is of HUF 300 million in a financial year) and the company’s employees (the company hired more than 50 employees in the last 2 financial years). 
According to the Act LXXV of 2007, the audit can be performed only by an accountant in Hungary who has received the right to act as an auditor. 
In other words, all persons who graduated from tertiary studies and have obtained an accounting diploma can be accountants, but not all accountants can be auditors, as additional requirements have to be completed. 
For instance, auditors need specialized studies and they must also have at least 3 years of practice. It is also required to work as an apprentice auditor for a member of the Hungarian Chamber of Auditors for a period of 3 years.  
If you want to open a company in Hungary, please do not hesitate to contact our Hungarian company incorporation agents for more information.

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Call us now at +36 1 200 3447 to set up an appointment with our lawyers in Budapest, Hungary. Alternatively you can incorporate your company without traveling to Hungary.

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