As an international businessman or woman, you might be considering opening a company in Hungary. Company Formation in Hungary is one of the most common ways to do business in Europe and Hungary can help make it happen smoothly and quickly! They have years of experience setting up businesses in Hungary and can give advice based on expertise with this unique legal system.
Why set up a company in Hungary?
The most important reason to set up a company in Hungary is that it’s part of the European Union and the Schengen area. This means that if you want to sell your products or services within Europe, it will be much easier for you to do so if your company is based in Hungary. Another reason why people choose to set up their companies there is because the country has a stable economy and business-friendly environment. It’s also attractive for investors: Hungarian government offers tax incentives for foreign investors who want to come here and invest their money in Hungarian businesses or projects (for example, green energy projects). It costs less money than other countries such as Switzerland or Austria (but still requires some expertise), so many foreigners choose this option instead. In addition, many people come here because they like working with Hungarians – they say they’re hardworking people who always try their best no matter what task they’re given.
How to start a company in Hungary?
- Choose a business name. This can be done in Hungary and abroad, but it’s better to choose a Hungarian name as it will be easier for you and your customers to remember. You can use either an existing company or create a new one, depending on your needs.
- Choose a business form. You have three options: sole proprietorship (egyéni vállalkozás), partnership (együttműködés) or limited liability company (korlátolt felelõsségû társaság). For example, if you want to open an accounting office then choose egyéni vállalkozás form because that gives you more flexibility than others forms such as kft where all partners must sign every document before submitting them at court registry office which may cause delays sometimes if someone is unavailable at that moment due illness etcetera…
- Register in the commercial register – This process takes only 15 minutes once documents are ready; however some paperwork may take longer depending on complexity so plan accordingly before starting this step.
Who can form a company in Hungary?
- Hungarian nationals
- EU citizens (including those from Croatia) who have a valid residence permit or temporary residence permit in Hungary.
- Non-EU citizens with a valid long-term visa for Hungary, whose stay in the country exceeds 90 days within 180 consecutive days are allowed to form companies in Hungary as well.
Do you need a registered address for your Hungarian company?
Yes, you must have a registered address for your Hungarian company. The address must be in Hungary and it must be a physical address (not a PO box). If your business is located outside of Budapest, there are additional requirements that must be met. The official name of your company should appear on all documents at this registered address as well as on its bank account(s).
How long does it take to register a Hungarian company?
Company registration in Hungary is easy and fast. It takes only 1 business day.
Types of Companies You Can Open in Hungary
Hungary offers a variety of business structures, including:
- Private limited liability company: This is the most common type of company in Hungary and is used by many international companies. It’s similar to a private limited company in the UK or Australia but can be run by one shareholder or more than 50 shareholders.
- Public limited liability company (plc): A plc has two types: “open” and “closed.” Open plcs are listed on a stock exchange such as Budapest Stock Exchange or Vienna Stock Exchange; closed plcs aren’t listed publicly but may have other investors who own shares in the company without being publicly listed themselves.
- Limited partnership: A partnership between two or more people where at least one partner contributes money or property (the capital partner) while another partner contributes labor or expertise (the working partner). Limited partnerships must be registered with Hungary’s National Tax Office within 30 days after they’re formed; they have no legal personality until this happens!
Is it possible to open a company in Hungary without a local representative?
If neither a commercial representative nor a branch office is appropriate, you can open a subsidiary in Hungary, which is a corporation that is owned by a foreign firm. This type of company formation requires the following documents:
- A registration application form (available from the Hungarian company registry) – You must have this completed and signed by the director(s) or authorized representative(s). The registration fee should be paid before submitting your application with all required documents.
- An original certificate of incorporation with seal affixed – This must be translated into Hungarian if it was issued in another language and authenticated by an attorney at law (notary public).
- List of shareholders’ names and addresses including nationality/residency status.
Source: Daily News Hungary