How to start a business in Hungary in 2023
Business in Hungary in 2003 is a direct route to the European market. The country has the EU's lowest corporate tax rate, which makes it attractive for investors. Other advantages include the ease of doing business and low start-up capital requirements. Also, the company's owner an instant VAT number, whereas in other EU countries a foreigner has to wait for it for up to 6 weeks. Another plus is the ease of starting a business.
Individual Entrepreneur Registration
The easiest and fastest way to do business in Hungary is to register as an individual entrepreneur. To do this, you must first obtain a tax and social security number as an individual number too. If you do not have one, you must apply for one from the tax authorities (NAV) and the National Insurance Fund (OEP). The processing procedure takes about 30 days.
If you are not an EU citizen, you must apply for a residence permit at the Hungarian Immigration Office.
Once the basic requirements are fulfilled, you can register as a sole proprietor in the Ügyfélkapu portal. When registering you must state the following:
- Name and address;
- Date of birth, country and city;
- Сode, indicating the kinds of business activities you will conduct;
- The form of taxation - simplified taxation, value-added taxation, etc;
- Your personal tax and social security number.
If everything is correct, the application will be approved within a few days.
Buying a company in Hungary
The easiest way to start a business is to buy a ready-made company in Hungary in 2023. It will be more expensive, but you will not have to collect a package of documents, spend time on registration, getting a business license, or other bureaucratic procedures.
Registering a company in Hungary
A foreigner can create the next business entities in Hungary:
- A fully independent company that can be managed without restrictions (e.g. LLC);
- Subsidiary - an option for an entrepreneur who is already the owner of a foreign business and wants to establish a company in Hungary, which will be subordinate to the main office;
- Branch or representative office - an organization that is wholly dependent on the decisions of the foreign head office.
Requirements for setting up a business in Hungary
- The company can be wholly owned by foreigners.
- 1 shareholder and 1 director.
- Bank account - can be opened either before or after registration. The second option is more accessible.
- Legal address. The services of office providers are allowed, where only the mail will come, but in this case, be sure to specify the address from which the company is managed.
- Business license - if the company plans to provide financial services, engage in industrial, energy, utility, and some other activities.
- The authorized capital can be contributed in whole or partially from the distributed profits.
How to register a business in Hungary
To open a company in Hungary in 2023, it is necessary to prepare documents, among which:
- Information about the owner(s), copies of their documents;
- Specimen signatures of the manager and directors;
- Reservation of company name;
- Office lease agreement and consent of the owner to have the company's headquarters located in Hungary;
- Certificate that the share capital has been paid - the amount depends on the structure. In the case of an LLC, it is necessary to pay about €10,000;
- A business plan;
- VAT number;
- Medical card for the company owner.
The Registry Court has to register the company at the Registry of Companies. If all documents are in order, the procedure takes up to 6 weeks.
How to open an LLC in Hungary
Contact IT-OFFSHORE to buy or register a business in Hungary.