A "korlátolt felelősségű társaság" (Kft.) is a type of business entity in Hungary, similar to a limited liability company (LLC) in other countries. It allows owners, known as members, to limit their personal liability for the company's debts. This means that if the Kft. faces financial difficulties, the personal assets of the members are generally protected. Kft.s are popular among small and medium-sized enterprises due to their flexible structure and relatively simple formation process. To establish a Kft., a minimum capital requirement must be met, and the company must be registered with the Hungarian Company Registry. This structure encourages entrepreneurship while safeguarding personal finances.