Group of Founders
Any foreign individual or legal entity may establish a Hungarian company without the mandatory participation of Hungarian citizens. Any foreign individual or legal entity may also serve as a director of the company without any restrictions.

Authorized capital
No authorized capital is required to establish a BT company; however, to establish a Kft, the founders must contribute tangible assets (cash, property, property rights) worth at least 3,000,000 Ft (approximately 10,000 euros) to the company as authorized capital. If this amount consists of cash, it does not necessarily have to be deposited into the company’s bank account; it may be held in the company’s cash on hand, in which case the company’s director issues a certificate to that effect, which must be submitted to the Companies Court along with the other registration documents.

Documents from the founders
Individual founders must provide a valid passport. Legal entities must provide an extract from the commercial register at their place of registration and a power of attorney from the legal entity’s director, issued to the person signing the Hungarian company’s documents, if the documents are signed by a representative rather than the director.

Company name
A company’s trade name consists of two parts: a distinctive name and an indication of the company’s legal form.
For example, in the name “Maika Kft,” “Maika” is the distinctive name, and “Kft” indicates the company’s legal form, which in this case is a limited liability company. The company’s trade name must not sound similar to the name of an existing company. The difference must consist of at least three characters; adding numbers to the name is not sufficient. For example, “Maika 2014 Kft” will not be registered if “Maika Kft” already exists.

Registered address
When registering a company, its registered address must be specified, and documents confirming the accuracy of this information must be submitted. The company’s registered address may be located in a residential or non-residential property, and may be leased or owned by the company. A lease agreement for the premises or a simple statement from the property owner authorizing the use of the premises as the company’s registered address must be submitted.

Business Activities
The types of business activities are not dependent on the company’s legal form, with the exception of a limited range of activities, such as banking, insurance, and so on. When establishing a company, it is generally advisable to specify the types of activities the company actually intends to engage in. The phrase “anything not prohibited by law” is not accepted. If a company intends to engage in licensed activities, such as international transportation, it must first be registered with the relevant activity specified in its articles of incorporation and only then obtain a license.