Kft vs. Zrt: Which Company Type Is Best for Your Business in Hungary?

When starting a business in Hungary, one of the first decisions you need to make is choosing the right legal form. For most foreign founders, the choice comes down to two options:

• Kft (Korlátolt Felelősségű Társaság) → Limited Liability Company

• Zrt (Zártkörűen Működő Részvénytársaság) → Private Limited Company

Both structures limit the liability of shareholders, but they differ in capital requirements, governance, and flexibility. Let’s explore the differences to help you choose the best fit for your business.

1. Kft (Limited Liability Company)

The Kft is the most common company type in Hungary and is often chosen by small and medium-sized enterprises, startups, and foreign entrepreneurs.

Key features:

• Minimum share capital: HUF 3,000,000 (≈ €7,500).

• Shareholders: at least one (can be foreign).

• Management: one or more directors.

• Liability: limited to the contribution of each shareholder.

• Flexibility: simple structure, suitable for most businesses.

Advantages:

• Lower capital requirement compared to Zrt.

• Simple and fast incorporation (typically 4–5 business days).

• Recognized and trusted structure in Hungary and across the EU.

• Suitable for companies with one or few owners.

Best for:

• SMEs, startups, e-commerce, consultants, freelancers expanding into the EU.

2. Zrt (Private Limited Company)

The Zrt is more complex and is typically used by larger companies or those planning to raise significant capital.

Key features:

• Minimum share capital: HUF 5,000,000 (≈ €12,500).

• Shareholders: at least one, but can be many.

• Shares: issued as registered shares (not public).

• Governance: more formal structure, may require a board of directors and supervisory board depending on size.

• Liability: limited to the value of shares.

Advantages:

• Easier to attract investors with share issuance.

• More credibility for larger operations.

• Flexible shareholder structure for growth.

Best for:

• Companies with multiple investors.

• Businesses planning to raise capital or expand rapidly.

• Larger enterprises that need a formal governance model.

3. Kft vs. Zrt: Side-by-Side Comparison

4. How to Decide

• Choose a Kft if you want a simple, fast, and affordable setup.

• Choose a Zrt if you plan to bring in investors, issue shares, or scale quickly with a more corporate structure.

5. How HUNIQ TAX Can Help

At HUNIQ TAX, we help international founders set up both Kft and Zrt companies in Hungary. Our services include:

• End-to-end incorporation in English and Spanish.

• Registered office and mail forwarding.

• Accounting and compliance from day one.

• Investor-ready structures for companies planning to scale.

📞 Still unsure which company type is right for you? Book a free consultation today →