The Limited Liability company (KFT) is an ideal company form if the number of members is low. It is very similar to the German Gmbh. Many foreign investments have been channeled through this type of company.



A KFT is treated as Hungarian tax resident if it is managed from Hungary, main business decisions should be made from Hungary to provide the background of the residency. Director does not have to be from Hungary. Director’s Meetings have to be in Hungary for maintaining Hungarian tax residency. Shareholders and/or directors can be either physical persons or corporate entities.

There is a paid up capital of HUF 3million (cc EUR 10.000).. Until the share capital is not fully paid, the shareholder is responsible for the payables of the KFT in the amount of the unpaid share capital the KFT is not entitled to pay out dividend, but the share capital can also be paid from the earning of the company. Fox example, if the shareholder did not pay any amount yet and the earnings of the KFT is HUF 10 million, then HUF 3 million can be treated as the payment of the share capital and only the rest HUF 7 million can be paid out as dividend.

It is a statutory requirement that a KFT must have a bank account opened in a Hungarian financial institution.


In order to commence KFT company formation in Hungary, please provide the following:

  • true copies of the ultimate private individual shareholders’ passport
  • true copies of the ultimate private individual shareholders’ proof of residential address not older than 3 months (ID copy or bank statement, bank reference, utility bill)
  • Your payment to the EURO COMMERCE LLC bank account