Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.
Last Published: 8/7/2019

Using an Agent or Distributor

Local agents or distributors are recommended in those instances when establishing a direct sales or production subsidiary in Hungary is not feasible or financially not justified. In selecting a representative, U.S. companies should consider their ability to: cover the entire Hungarian market, manage price-setting, oversee sales channels, conduct advertising and marketing, manage operational expenses, and offer after-sales service. U.S. companies must also ensure their agreements with local representatives comply with both local and EU laws and regulations.

Companies both from overseas and from other parts of Europe often maintain control of operations in Hungary through partially- or wholly-owned subsidiaries. Hungary also has many experienced and capable independent distributors. The Hungarian representation offices are typically small- to medium-size (5 to 49 employees) and follow international business trends, i.e. they communicate with clients through e-mails and websites (increasingly in English) rather than brochures.

Distributors in Hungary can provide strategic support in positioning brands for the local market through advertising and promotional campaigns. Given their familiarity with local culture and business customs, distributors can also assist with after-sales service, which helps the U.S. firm’s image. Citing heavy trading competition and Hungary’s relatively small market, many distributors will negotiate for exclusivity, but U.S. firms can successfully insist on conditions for exclusivity or other concessions. Major European trade fairs, specifically those in Germany, U.K., France and the Netherlands, are well attended by Hungarian trading companies, and can be good places to look for distributors.


Small-and medium-sized enterprises (SMEs) in Hungary often prefer the role of distributor for foreign firms, while private entrepreneurs prefer to act as agents on behalf of their international partners and do not take the ownership of goods or assume financial risk.  Agents in Hungary generally work on a commission basis, and rates vary by industry.  Agents in Hungary typically earn a 5-7% sales commission depending on the value and nature of the product.  Stocking distributors expect higher margins. The use of agents is more common in sectors where capital and technical expertise is paramount, such as machining, automation, tooling, and heavy industry.

It is recommended that U.S. companies meet personally with prospective agents to ensure that they understand all legal obligations before signing an agreement.  Note that a legally binding document can be in English or Hungarian, but in the event of commercial or tax dispute, an authenticated Hungarian version is the governing document.

Companies should also contact the Hungarian Investment Promotion Agency (HIPA) and the Hungarian National Trade House (Trade House). HIPA has the authority to enhance foreign direct investments into Hungary, while the Trade House strives to seek out new markets and opportunities for Hungarian enterprises and supports Hungarian SMEs with business development services such as export promotions abroad.

Through its various customized services the pre-screen and qualify potential, the U.S. Commercial Service at the U.S. Embassy in Budapest can provide a head start to firms seeking a distributor or agent in Hungary.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.