Inteliumlaw

Company registration in Hungary

Inteliumlaw » Business registration abroad » Company registration in Hungary

Reasons to Company Formation in Hungary

Hungary’s fast growth has made it a top pick for setting up businesses. The country’s prime location, business-friendly setting, and rising pool of talented workers make it stand out. If you’re thinking about company formation in Hungary, get in touch with our legal team at InteliumLaw. We’ll help you navigate the tricky parts to make sure your incorporation process in Hungary goes off without a hitch.

  • Central Business Hub: Hungary sits in the middle of Europe. It’s part of the EU, which gives it access to many markets.
  • Supportive Business Environment: Hungary’s business scene and laws make it easy to run companies.
  • Business-Friendly Tax System: Hungary’s taxes help businesses grow. The 9% corporate tax is among the lowest in OECD countries. However, a local business tax should be also taken into account and it depends on the municipality of the company’s location. People pay about 15% income tax. Residents and non-residents don’t pay tax on interest and royalties. Also, Hungary doesn’t see its corporate structure as offshore.
  • Trained Workforce: The area stays competitive in skills and compensation thanks to its trained and multilingual workers.

Company Set up in Hungary: Main Advantages

Some of the key advantages of company set up in Hungary include -

  • Quick Company Formation: The process is swift. You get an EU VAT number right away. It takes about 4-5 working days to complete. You can even set up a company online in Hungary.
  • Foreign Ownership: Hungary lets foreigners own all the shares. This applies to both individuals and companies from other countries.
  • Single shareholder structure: Hungary stands out in the EU for allowing companies to have just one shareholder or member.
  • Flexible Capital Contribution: At the time of your company set up in Hungary, you don’t need to pay all the share capital upfront. You have 2 years to pay the full amount, giving you lots of flexibility.
  • Supportive Banking Structure: Hungary’s banks make it easy to start a company. The country has top banks that can handle complex money transfers across borders and help global businesses.

Types of Companies Eligible for Company Registration in Hungary

If you’re considering company registration in Hungary, you must register any one of the following types of companies:

  • Limited Liability Company (Kft.): This type of company can have any number of shareholders. It needs about 3 million HUF or EUR 7,900 as minimum share capital. A director chosen by shareholders runs the company’s day-to-day work.
  • Joint stock company (RT): One person or a business can start a joint stock company. It works well for big businesses. You need at least 5 million HUF, or about EUR 13,100, to start. These can be private or public. To manage, it has a board of managers and a group of at least three people to watch over things.
  • Hungarian General Partnership: The Hungarian General Partnership offers another way for a company registration in Hungary. It needs at least 2 members, and both have the same duties. You don’t need a set amount of money to start. You can use profits to pay taxes. 
  • Hungarian Limited Partnership: It is a type of general partnership. What makes it special is that it joins a partner with full duty and a partner with limited duty.
  • Representative office or branch in Hungary: You can also form a representative office or branch in Hungary. You must sign it up with the Court of Registration. Even though it’s part of a bigger company, Hungarian laws control it.

InteliumLaw Services for Company Formation Hungary

We offer the following services to assist you with Company Formation Hungary;

  • Tax & Legal Quaestions: We take a look at the tax and legal setups as well as the impact of establishing a business in Hungary. This aids in knowing everything comprehensively related to the unique situation and allows us with relevant answers.
  • End-to-end support: We provide professional assistance throughout the company formation Hungary to comply with local authorities. Our range of services also includes documentation, notary certification, tax registration, and authentication processes, such as apostilling the documents and opening a bank account locally.
  • Payment Solutions: We also equip you with the most suitable payment solutions for smooth financial transactions (EMIs, SEPA, SWIFTS, etc.)
  • Permits & Licenses: Our team assists you in getting the needed licenses and permits so that your business runs as a legal entity without any complexities.
  • Networking Opportunities: When our clients wish to start a company, we introduce them to a community of specialists in accounting and auditing in Hungary that they can use so that their new business will always have reliable accounting.

Process of Company Formation Hungary

These are the main steps followed during the formation of the Hungary company.

  • Initial Consultation: The process begins with an initial consultation with our experts, during which you’ll learn about corporate laws, regulations, and other factors. Our team will also need other important details about your business goals, strategies, etc. This will help us proceed accordingly.
  • Documentation: In the second phase, documentation work will be completed. You can refer to the next section to learn more about the necessary documents for company formation Hungary.
  • Application Submission: Up next, documents must be signed by you or your legal representative and submitted for incorporation in the Hungarian Court. For documentation, you need to be physically present in Hungary. If you’re short on time, you can authorize a Power of Attorney for all the documentation work on your behalf.
  • Registration: After company incorporation, your company must be registered with the Hungarian Tax Authorities, like Central and Local Tax Offices, the Chamber of Commerce, or the Statistical Office.
  • Bank Account: Opening a bank account is the last step of company formation Hungary. Our team is familiar with the banking requirements, so you can easily open a company account with Hungarian Bank.

Documents Required For Company Setup Hungary

Here is a list of necessary documents for company setup Hungary including-

  1. MoA and AoA: The Memorandum of Association and Articles of Association list shareholders, directors, share capital, office address, and business purpose.
  2. Member Identification:  Companies must identify shareholders and general managers.
  3. Utility bills:  Shareholders and general managers must give their utility bills.
  4. Article of Foundation/Resolution of Founders
  5. Certifications: Official translations and notary certifications are needed for all documents. Getting an apostille or legalizing the documents is also essential.

Why Choose InteliumLaw for a Company Setup Hungary?

At InteliumLaw, our team ensures that your business enjoys a competitive advantage in the industry. Here are some reasons for joining hands with us

Seasoned Experts

Our professional team knows everything about Hungarian corporate laws & regulations, which will help you in the company setup Hungary without any delays or interruptions.

Personalized Services

Each of our clients gets personalized services tailored to their specific business needs. We understand well that every business is unique and requires distinct services and support. That’s why we’re with you every step of the process.

Streamlined Processes

We are as excited as you about your company setup Hungary. That’s why we ensure everything is done in the least amount of time without any delays or hassles. From consultation to documentation and registration, our experienced team manages every step of the process expertly.

Compliance and Ongoing Support

When you incorporate a company in the heart of Europe or Hungary, your business operation will take a turn for the better. However, to ensure smooth operations, you must comply with Hungarian corporate laws and taxation regulations. At InteliumLaw, our team will assist you in long term. We know that the legal structure of every country is complex and changes periodically. Therefore, staying up to date with these changes and maintaining regulatory compliance is a must. We keep our clients well informed about such updates for efficient business operations.

Have you got any queries? Contact us today.

Leave Us A Message

And we wil get back to you

FAQ

What is the cost of Hungary company formation?

The exact cost of a Hungary Company Formation will depend on the business type and the services you choose. Contact us for more information.

What is the usual duration for registering a company in Hungary?

After the application is submitted, it takes about 2 weeks or 15 working days to open your company in Hungary.

Is a subsidiary a possible way to set up my company in Hungary?

Sure. You can set up a subsidiary in Hungary with your company acting as a foreign parent company. You can also consider opening a branch or a representative office.

What is a Client Gate, and why is it important in Hungary?

Client Gate is an exclusive government-maintained gateway or portal that helps companies in Hungary access a range of essential services and administrative tasks. These services and tasks are important for your business's operations.

Do I need to deposit the share capital immediately during a Hungary company formation?

In Hungary, you are not required to deposit the share capital amount immediately in your bank account. You have up to 2 years to do so.

Kindly brief me on the tax implications for a company owned by a foreign entity.

When a Hungarian company pays dividends, royalties, and interests to a foreign parent company, it does not attract withholding taxes in Hungary. Non-resident shareholders and individuals need to ensure that they reduce the withholding tax under the double taxation treaty. Otherwise, the rate can reach almost 15%.

Can foreigners form a company in Hungary?

Can foreigners form a company in Hungary?

Yes, you can. Both local residents and non-residents are allowed to set up companies in Hungary, except for specific sectors like agriculture.

I need help with opening a corporate bank account in Hungary. Can your team help?

InteliumLaw offers such specialized services as opening a corporate bank account in Hungary.

What is the minimum share capital for a Hungarian company formation?

The amount is approximately 3 million HUF or EUR 7,900 for an LLC (Kft) and about 5 million HUF or EUR 13,100 for a Hungarian Joint Stock Company (RT).

Does InteliumLaw offer accounting and tax services once a company is formed in Hungary?

We can help you find the best accounting and tax services partner in Hungary.

Other services

Leave a request for a service

The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.

LEAVE A REQUEST FOR A SERVICE

The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.