Starting a Sole Proprietorship, Step by Step

There's no separate "company formation"

A sole proprietor (egyéni vállalkozó) operates under the Sole Proprietors and Sole Proprietorships Act, 2009. évi CXV. törvény: there's no court registration, no registered capital, no founding deed. The business comes into existence simply by being entered into the sole proprietors' registry (replacing the old paper "vállalkozói igazolvány" certificate); that entry is itself sufficient proof, no separate certificate is needed.

What do you need to register?

• Ügyfélkapu+ or DÁP (Digital Citizenship Program) authentication: you can't log into the Webes Ügysegéd without it.
• Your ID card and address card details.
• The ÖVTJ code (Sole Proprietors' Activity Classification) for your planned activity: sole proprietors use this code, not the TEÁOR code used by companies. You can list several activities, one as the main one.

Registering via the Webes Ügysegéd

Registration starts at webugyseged.gov.hu (also known as nyilvantarto.hu/ugyseged), after authenticating with Ügyfélkapu+ or DÁP. The process is free, and the registry entry is typically made instantly or the next day: from that point, the business counts as active. NAV automatically assigns a tax number (törzsszám, VAT code, and regional code, combined), and the Central Statistical Office (KSH) assigns a statistical identifier: you don't need to apply for either separately.

What you must decide right at registration

The registration form asks you to declare a few longer-term choices immediately:

• Tax regime: unless you choose otherwise, your income is taxed by default under vállalkozói szja (itemized-cost) rules. Flat-rate taxation (átalányadó) can also be chosen from the start of the activity, if you indicate it on the registration form; it can't be switched mid-year afterward. If you're unsure which pays off better, the flat-rate vs. actual-expense comparison calculator can help.
• VAT: if you expect to stay under the VAT exemption (alanyi adómentesség) threshold, you can declare that choice here too; it also applies to the whole tax year.
• Insurance status: you need to indicate whether you're starting the business as your main occupation, a secondary occupation (alongside existing employment or full-time studies), or as a retiree: this determines the base for social security contribution and social contribution tax. See the insurance status article for more.

Do you need a separate bank account?

If you're VAT-liable (meaning you haven't chosen VAT exemption, or your activity isn't exclusively VAT-exempt by nature), the law requires you to hold at least one domestic payment account, opened within 15 days of your tax number being issued. If you're VAT-exempt, there's no such requirement, the business can run through your own, even personal, bank account, but a separate business account is still strongly recommended for clean bookkeeping.

Other things to sort out at the start

• Being entered into the sole proprietors' registry doesn't itself register you for local business tax: you need to separately register with the municipality where your business is based, within 15 days of starting the activity. See the HIPA calculator article for details.
• Decide how you'll keep the records the law requires, and what invoicing software you'll use: both need to be NAV-compatible if you're VAT-liable, or if you invoice regularly.

This article is for general information only and does not constitute tax advice. Source: the Sole Proprietors and Sole Proprietorships Act, 2009. évi CXV. törvény (net.jogtar.hu), and the Rules of Taxation Act, 2017. évi CL. törvény, on the payment-account requirement.

Last updated: July 31, 2026.