Advantages:
- It is a country with a favorable business climate and the lowest corporate tax in Europe (9% with annual revenues of up to 2 million euros located in the center of Europe)
- A cheap real estate in comparison with other European countries. For example, the low rental cost per square meter
- The banking system is well-developed
- Politicians actively support small and medium-sized businesses. A support is provided not only in Hungary, but also internationally
- In addition, registering a company in Hungary is also prestigious, because Hungary is the part of the European Union, where business procedures are accelerated every year
👉 For a small European country, together with its GDP of at least 5% and a population of 10 million inhabitants, this is a huge advantage to open a company in Hungary. It is possible in a short period and without pitfalls
As in any other country, there are forms available to register a commercial firm in Hungary.
The analogue of the LLC is divided into two parts:
- KFT, which means a closed limited liability company
- RT, which means an open LLC
Name of the company (send us 3 possible options) - 4 days
Set up the Company - 5-7 working days
Requirements to setup a company:
✅ Only one shareholder and one director is required to fulfill Hungary company formation requirements. VAT registration is going along company registration,it is obtained within few days.✅ Most of the Hungarian companies are required to register for Value Added Tax (VAT)
✅ Corporate shareholders are permitted.
✅ Registered address or virtual office required
✅ Minimum share capital – HUF 3.000.000 (appx €9600) – this needs to declared not deposited
✅ An Accountant should be appointed prior to the company application (We can provide this)
✅ Company should have Hungarian Bank account
Documents required to register a company:
✅ A valid passport for the owner(s) and general manager(s)✅ Founding documents and declarations of the CEO
✅ Agreements of assignment
✅ Specimen of signature
All of these documents have to be counter-signed before registration and submitted to the authorities by a Hungarian attorney. The submission can only be done electronically. Therefore, you will need to scan all the necessary documents once they’re signed. All documents have to be signed with a qualified electronic signature
Mandatory registrations and other necessities 👇
- Once all the documents are collected and signed, you will go with your attorney to the Hungarian Court to register the company. The procedure at the court of registration usually takes one day. After that, you will have to register with a number of other organizations and authorities in Hungary.
- First, you will have to register with the local tax office and Hungarian tax authority – Central Tax Office. This is compulsory for all companies. There’s an option called “one-stop-shop” where the court gets the statistical code and tax number directly from the Statistical Office and tax authority instead of you.
- You will also have to register with the Chamber of Commerce. You can do this in person or authorize the attorney to do it on your behalf.
- Every company registered in Hungary must also have a bank account in Hungarian forints. Foreign currency accounts can be opened, but they’re optional. Opening a bank account takes approximately one week.
- Additionally, every company registered in Hungary must have a registered office at a publically available address. Therefore, you will also need to register a physical address for your company. We can do that for you, as well.
- You will also have to register your company with the Trade Registry for social security and obtain their certificate. Finally, every company must be registered with the Statistical Office.
- Registering with additional authorities is free of charge but compulsory. The process usually takes 2-15 days. If after court registration you fail to register with authorities within the legal time frame, you and your company might face serious legal trouble.
🤝 Residency - Working Visa - 1 month
- A residence permit is valid for up to 3 years. A work permit is valid for two years, whilst the visa can be valid for a year.
- Non-EU and non-EEA nationals may also apply for an EU Blue Card – this works both as a work and residence permit for highly-qualified non-EU workers who wish to work and live in the EU. To meet the qualifications, you will need:
Requirements:
✅ The application form: which can be submitted electronically or by hand✅ A valid passport: Your passport must be issued within the last 10 years, contain at least two blank pages, and be valid at least 3 months after the visa’s duration
✅ Photos: Passport photos that have been taken around the time of application, in color
✅ Reference letter from prospective employer (original and copy from government e-portal)
✅ Proof of sufficient funds and means
✅ Proof of accommodation
✅ Proof of health insurance
✅ A certified copy of a valid employment contract
✅ Proof of employee’s qualifications and experience
✅ Any relevant certifications, licenses, references, or authorization
Documents:
✅ Proof of your higher education qualification (university degree, transcripts, etc.), or in some case, proof of at least 5 years of relevant professional experience.✅ An employment contract of at least a year (does not apply for self-employed work or entrepreneurs).
✅ A higher-than-average salary compared to the average salary of Hungary (except when the lower salary threshold applies).
✅ Long-Stay Visa application.
✅ The necessary travel documents – passport, health insurance, travel itinerary, etc.
✅ Proof you completed the legal requirements to practice your profession, where this is regulated.
🏦 Personal Bank account - 2 weeks
Requirements:
✅ Legal Status in Hungary - Residency✅ Accommodation
Documents:
✅ Residency & Passport✅ Rent agreement + Bills
🏦 Additional Expenses:
- Approximate accommodation budget 600 - 900 Euro per month payable directly to a landlord + utility bills.
- Approximate cost of doing business in Hungary 🇭🇺 :
✅ Office space per month - app. 80 Euro
✅ Annual audit & tax filing - 800 Euro
🤑 Taxes: Low corporate tax: at only 9%, it is one of the lowest in Europe. Dividends paid to any resident or non-resident person are legally tax-free. Paid royalties are considered expenditures and can be deducted from Hungary corporate profits. Withholding tax is 0%.