Starting a business with company registration in Hungary takes only a few days and its registration in the intra-community VAT registry is carried out immediately. In fact, Hungary is one of the few countries in the European Union where this process remains automatic. This, together with a corporate tax of only 9%, makes Hungary an ideal destination for companies, investors and non-EU citizens who want to establish a base of operations in Europe in a comfortable and economic way.
Business opportunities in the country, especially in Budapest, have increased exponentially in recent years, attracting numerous international companies to Hungary.
A third of the business established in Hungary is done in the capital, so if you are thinking of starting a business in Hungary, Budapest is an excellent option.
The main industrial sectors in Hungary are car manufacturing, telecommunication companies, publishing and tourism. Hungary’s main source of employment is the service sector.
In recent years there has been a reduction in unemployment and there is currently a great demand for specialist professionals in different fields, mainly in the automotive, metallurgical and construction sectors. If you have experience and hyper specialization in any of these fields, it will be very easy for you to find a job in Hungary.
As English is the language of business, many international investors move to Budapest in search of opportunities. The reasonable prices of the houses together with the low cost of living, compared to other European capitals, are attractive factors when making such a decision.
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- Quick and easy business creation: Your company registration in Hungary will be up and running in 4-5 business days.
- Low corporation tax: Being only 9% it is one of the lowest in Europe.
- Tax identification number for the purposes of immediate intra-community VAT: no waiting or additional requirements.
- Low start-up capital that no deposit is required.
- Profitability of the establishment and maintenance of the company.
- Central location in the EU with good infrastructure.
- Ease of obtaining visas and residence permits for citizens of all nationalities
Starting a Business in Hungary
Types of Companies
The most recommended companies for foreign investors are those whose holders are by virtue of a participation in the capital stock through shares (public or private).
Depending on the needs of investors, the nature of their business, the share capital and the type of responsibility they want to assume, they can set up different types of companies in Hungary:
- KKT – Collective Society. All partners respond with their own assets to pay outstanding debts of creditors.
- BT – Limited Partnership. It is characterized by the coexistence of collective partners and limited partners. The former is unlimitedly liable for corporate debts and participate in the management of the company, while the others limit their liability to capital and do not participate in management.
- RT – Corporation. There are both public and private corporations. In this type of company, the shareholders do not respond with their personal assets to the debts of the company, but only up to the limit of the capital contributed.
- KFT – Limited Company. Unlike the Corporation, it cannot be a public corporation. The minimum share capital is 3 million HUF.
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5 Steps to Start a Company in Hungary
Incorporate a Company in Hungary
Incorporating a company in Hungary is a procedure based on the legal system that applies to all EU countries.
Step 1 Prepare the documents by a lawyer registered in Hungary, sign these documents by the founders of the society and legitimize their signature in front of the Hungarian lawyer.
Step 2 Open a bank account.
Step 3 Register the company in the Hungarian Property Registry and obtain the tax identification number.
Step 4 Register the company with all the competent Hungarian authorities.
Step 5 Register employees in the Public Treasury.Some companies require licenses, to study individually.
By setting up a Hungarian partnership with FirmaX Hungary, you will receive all the necessary assistance to start it up. Our basic package includes full service for the constitution, VAT registration, bank account opening and accounting services. Ask us.
Business and Societies in Hungary
For those who do not have their own office in Budapest, we can provide them with a “registered office” service.
Tax Advice in Hungary
It is essential to have a good tax expert in Hungary when you want to do business in the country, regardless of the sector in which you move. A good tax advisor will help you solve the possible risks and setbacks of your business.
The expert team of FirmaX Hungary in Budapest will be happy to assist you in your business or company registration in Hungary, assuring you with the advice you need for the smooth running of your business.
At FirmaX Hungary our advisory services are mainly focused on SMEs and private individuals with international experience. We offer legal and tax advisory services for company registration in Hungary to our clients.
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