Once you start planning to move to Hungary, you may be wondering how to start a company in Hungary. This post was created to help you better understand the process and legal aspects of company formation Hungary.
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Foundations For Creating A Company
The same legal system currently in use in EU countries is used to set up a company in Hungary. If you are a foreigner wishing to start a business in Hungary and have a valid residence permit, you will be able to do so after obtaining a single owner’s license.
How Long Does It Take To Open A Company In Hungary?
On average, it takes about five days to open a company in Hungary. This includes time for all legal proceedings, including legal advice and visits to the registration court. More often than not, foreigners prefer to invest in limited stock companies and limited liability companies.
What Companies Can You Invest In Hungary?
In Hungary, foreigners will have the opportunity to invest in one of the four types of companies. These include:
- KKT – General Partnership – in these companies, all partners have complete responsibility for the company’s operations.
- BT – Limited Partnership – these companies recognize that at least one partner has unlimited legal responsibility for the company’s operations. Some partners in these companies have only a limited legal obligation.
- RT – Joint Stock Companies – In joint venture companies, company assets are traded on the stock market. These can be private, or community organizations but have one participant. Companies of this nature must have a board of directors consisting of not less than three and not more than eleven members.
- KF – Limited Liability Companies – Limited Liability Companies in Hungary cannot raise money in the community. The shareholders of these companies have limited liability, and the company’s minimum wage should be over HUF 3 million.
How To Register A Company In Hungary
All Hungarian companies and businesses must be registered in the trade register of competent regional courts. All business registration applications are digitally submitted to the Commercial Court by a designated attorney. Attorneys applying for business registration must provide the following:
- Commercial license
- Basic documents
- The business name of the company and the address of its executives.
- Business location
- Type of work
- Registration form
- Grant for foreign workers
- The company must also be registered:
- Central Statistics Office (KSH)
- National Income Tax Office (APEH)
- Regional Income Tax Office
- Regional Registration Court
- National Insurance Institute
What About A Hungarian Business?
The level of business activity in Hungary is very low compared to other EU countries. Many Hungarians work for companies and prefer to work for themselves. This, however, does not mean that you cannot be a businessman living in Hungary. It just changes how you work and register as a business in the country. However, Hungary has a business visa – Hungarian Entrepreneur Program (HER).
Conclusion
You should prepare and translate all required documents and sign them together with your attorney by contacting a Hungarian attorney. This includes obtaining the official Hungarian address for your company. Then you need to open a bank account. Your attorney then applies electronically to the Registration Court. The documents will be recorded and stored on the court website. You will be issued an electronic registration certificate. If you use a single-window system, the court will get your mathematical code and tax numbers. Opening a company in Hungary is more accessible and manageable than in many other countries. However, you should carefully read the rules and regulations to avoid potential problems.
