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Company Formation Hungary



The Share Capital in Hungary

Updated on Thursday 24th November 2022

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The-Share-Capital-in-Hungary.jpgRequirements for companies in Hungary

Some types of Hungarian companies require a minimum share capital in order to be incorporated. The amount of the minimum initial capital in Hungary depends on the kind of enterprise. The shareholders can bear liability according to the investments made in the company.
The share capital in Hungary is one of the first business start-up costs that need to be taken into consideration when deciding to open a Hungarian company. Foreign investments in the country are encouraged and full ownership is allowed. Hungary has also signed a series of double taxation treaties with other countries and other bilateral treaties guarantee the rights of foreign investors.

Types of companies that require a minimum share capital

The types of companies that require a minimum share capital are:
- the public limited company;
- the private limited company.
The unlimited partnership and the limited partnership do not require a minimum initial capital. A limited liability company in Hungary has a predetermined initial capital provided by its founding members. Investors who want to open a Hungarian company of this kind should know that the minimum share capital requiured is 3 million HUF (nearly 10,000 EUR). The contributions to the initial capital can be in cash or in-kind.
The public limited company requires a minimum share capital of 20 million HUF (64,000 euros), while the private limited company requires requires at least 5 million HUF (16,080 euros). The Companies Act allows that the share capital of these two business forms to be in-kind contributions.
Our company registration experts in Hungary can help you open a bank account for your company and make the initial share capital deposit.
For accounting services, you can contact our accountants in Hungary, who can help any business type in any accounting procedure that is required by law. Accounting procedures are done following the rules of the Accounting Act. 
Also, the statutes of the Ministry of National Economy apply to local and foreign businesses operating on the local market, including to the permanent establishments of foreign companies. 

Other details about the shares in a Hungarian company

Each member of a limited liability company owns a percentage of the total capital. This quota can be owned by one or more individuals. The company can be incorporated if at least half of each cash contribution is deposited in the company’s bank account. The remaining amount must be paid within one year from registration. Our experts can help you with details about these contributions if you want to open a Hungarian company.
The public and private limited liability companies can have different classes of shares, like ordinary shares, employees’ shares, convertible share and others. Shareholders are entitled to participate in shareholders’ meetings and are entitled to dividends, in proportion to the value of their shares in the company.
For more information about the share capital in Hungary and the shareholders’ rights, you can contact our company registration agents in Hungary.

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Mihai Cuc, Partner of MHC Law Firm