Registering a company in Hungary

Hungary is a European country that has been developing rapidly in recent times. Doing business in this country is allowed to residents, non-residents, people from other countries. To open a company in Hungary, you need to have finances for the authorized capital (if necessary) and the development of the company, come up with a name for the company, legalize its commercial orientation. The registration process takes approximately 2 weeks.

Registering a company in Hungary: the main advantages

Many businessmen are interested in registering a business in Hungary. And they are right to do so, as opening a company in this jurisdiction has certain advantages:

1. The government supports the development of any business. Firms here receive benefits, subsidies in accordance with the type of employment. For example, wineries, hotels, organizers of art festivals enjoy a simplified taxation system.
2. Cheap offices, warehouses. The price of rent or purchase of premises for business activities is lower than in other European countries.
3. The country has the lowest corporate tax rate in the European Union.
4. Non-residents receive zero taxes on their dividends as well as income gains.
5. A company in the country can be registered remotely. However, local bank accounts need to be done in person.
6. An entrepreneur in this jurisdiction takes out a residence permit.

In addition, there are favorable regimes for intellectual property.

Here you can get a residence permit. What is the best way to open a company in Hungary?

Select the form of entrepreneurial employment should take into account the field of activity, the number of founders, the size of the authorized capital, personal wishes. It is also necessary to choose the optimal taxation system and consult with our company's specialists.

The following types of companies can be registered in Hungary at the moment:

1. LLC. It is considered a common form of ownership in which there are no special requirements for the number of employees. This type is used, as a rule, to open small or medium-sized businesses.
2. JSC. Open this form, mainly large firms that operate in different areas. The main governing body is the board of directors, which includes at least 3 people.
3. AJSC.
4. Full partnership. Commercial work is carried out after the start-up capital, form, scope of employment is determined.
5. Limited Liability Firm. It is created with the help of two founders and more. There is no minimum amount of authorized capital.
6. PE. The entrepreneur carries out various types of commerce, even registering branches.
7.  

It is also possible to open a cooperative. This is an organization that includes in its composition 7 or more persons. It is registered in order to solve organizational issues for the benefit of each participant in a particular area of activity.

Open a company in Hungary and which taxation system should I choose?

The tax system in this country has two main facets: on the one hand – there is no taxation of passive income and the lowest corporate tax in the European Union. On the other hand – the state has higher social deductions, a fairly high rate of VAT across Europe.

But the big plus for technology businesses – the country has favorable taxes. For example, IT businesses get to reduce taxes on profits due to intellectual property on ½.

Gaining citizenship, residence permit

Entrepreneurs who decide to establish their organization choose one option to register a local residence permit.

1. You can request both a residence permit and a business visa from the embassy in your home country.
2. You can visit the state using the visa-free regime, submit your request online.

With this application, it is also necessary to submit a dossier, which includes the necessary documents, papers confirming the fact of establishing your own enterprise.

A residence permit can be issued for a maximum of one year.

The residence permit is issued for a maximum of 3 years. If the businessman pays taxes on time, then he extends the residence permit.

After 5 years, a foreign citizen obtains a permanent residence permit, and after 8 years of residence, he/she receives citizenship.

Registering a business in Hungary is fast and inexpensive

If you have decided to do business in this jurisdiction, feel free to contact our company for help. Our experts will be able to advise you on how to correctly submit all the documents for residency, help you understand the process of registering a company, and give you useful advice.

Our main advantages:

• affordable prices;
• large list of legal services;
• assistance in the execution of any documents, the opening of any form of ownership.

In addition, we perform our work quickly, qualitatively, inexpensively.