Advantages of registering a business in Hungary

Business registration in Hungary is relevant for investors from all over the world. The country offers tax benefits, good opportunities for the development of one's own business, and has relatively low rates. To learn more about the nuances of registering a business or buying a ready-made company in Hungary, contact our specialists at IT-OFFSHORE.

The advantages of opening a company

The rate of corporate income tax in Hungary is only 9%, and it is one of the lowest rates in Europe. The personal income tax rate is also relatively low - only 15%. There are favorable conditions for investment loans, and you can qualify for financial aid. There are some exemptions from paying fees on income from intellectual property or software development.

Opening a company in Hungary in 2021 is relevant, as the jurisdiction has a positive reputation. It is possible to register a business in a fairly short period of time. It takes about 2 weeks to open a company.

The country is conveniently located geographically. Trade routes and highways pass through it. It is on the list of members of the European Union. For businesspeople it is possible to move to Hungary with a residence permit. Having a residence permit gives the right to reside in the country and visit Schengen countries without a visa.

The period of validity of a residence permit is 12 months. After 3 years after the periodic extension, you can apply for a permanent residence permit. Later the possibility of obtaining citizenship appears. It is not forbidden to obtain dual citizenship.

How to open a company

Before opening a company in Hungary in 2021, you need to choose a suitable area for development. The country does not have a lot of natural resources but is focused on exports and international trade.

The agricultural sector is developed in Hungary. Business in the direction of agriculture is promising for both local and foreign entrepreneurs. An alternative popular business direction is mechanical engineering. You can consider the idea of opening a company working in electronics, IT, or tourism.

For the creation of a small or medium-sized company, the KFT is the right one. The firm must have at least one member. The authorized capital should be 3 million HUF. A registration address and an office are required.

The rate of corporate tax is 9%, in addition to this municipal tax may be required to pay 1-2%. Value-added tax is 27 percent, but there are preferential rates of 18 and 5 percent. Fairly significant social contributions.

How to open a bank account

To open a bank account in Hungary, you will need information about the registration of the company, the articles of association, and information about the appointment of the director. Together with the application, you need to provide data describing the activities.

Popular banks:

• OTP Bank;
• Erste Bank;
• CIB Bank;
• Raiffeisen Bank;
• BNP Paribas.

There are several advantages of setting up a corporate account in this country. The banking infrastructure is developed, there are no currency controls, and it is possible to use online banking. Many financial institutions have staff who speak Russian.