Business immigration to Hungary: the registration process
Hungary, as a member of the European Union, attracts foreign entrepreneurs thanks to its strategic location, stable economy, and low taxes. One way to obtain a residence permit in Hungary is by establishing a company, which not only allows you to conduct business but also enables the owner or managing director to obtain a residence permit. This process involves several stages, from registering the company to providing the necessary documents for obtaining a residence permit.
Benefits of Obtaining a Residence Permit Through a Company
- Business Immigration – Obtaining a residence permit based on your own business allows you to stay in Hungary and work for yourself, free from dependence on employers.
- Access to the EU – With a residence permit in Hungary, you gain access to EU countries, giving you opportunities for business throughout the European Union.
- Low Taxes – A tax rate of 9% is one of the lowest in Europe, significantly reducing company operating costs.
- Quality of Life – Hungary is a stable and safe country with good conditions for living and doing business.
Step 1: Opening a Company in Hungary
To begin the process of obtaining a residence permit, the first step is to register a company. The most popular choice among foreign entrepreneurs is a limited liability company (Kft.). This type of company is ideal for small and medium-sized businesses.
The following documents and information are required to register a company in Hungary:
- A copy of the passport or ID card of the company owner/director.
- Proof of address for the owner/director (such as a utility bill or bank statement).
- A personal tax number for the owner/director.
- Three proposed company names for availability check.
- A description of the company’s activities.
- A company email address.
- A statement on the terms for paying the share capital – a minimum of 3 million HUF (no later than two years).
Step 2: Required Services for Company Registration
Several additional services are necessary when registering a company in Hungary:
Legal Address – A mandatory condition for the company’s operation, providing a business address for a year.
Service Representative – A service required to handle all formalities and business support in Hungary, also for a year.
Once all documents are gathered, signed, and all services are paid for, a meeting with a lawyer is required for verification. After document approval, the registration process is completed by submitting them to the Company Register, where they will be reviewed and approved within a few days.
Step 3: Conditions for Obtaining a Residence Permit Through a Company
To obtain a residence permit (RP) in Hungary based on a company, several conditions must be met:
- Valid Passport – With a minimum validity period of at least three months beyond the requested period of residence in Hungary.
- Proof of Means of Subsistence – This can be provided through company income or bank savings (statement for the last three months). In this way, you need to demonstrate that your funds are sufficient for living in Hungary.
- Proof of Accommodation – This requires providing a rental agreement or proof of property ownership in Hungary.
- Medical Insurance or sufficient savings to cover medical expenses. Hungary requires insurance that covers all medical costs within the country.
- No Entry Bans – It is important that you have no legal issues or entry bans to Hungary or the EU.
- Compliance with Residence Requirements – No more than 90 days out of 180 days before applying for the residence permit.
Step 4: Application Process for Obtaining a Residence Permit
Once all conditions are met and the necessary documents are prepared, you can submit your application for a residence permit.
Conclusion
Registering a company in Hungary and obtaining a residence permit through your own business is an excellent opportunity for entrepreneurs wishing to start operations in the EU. Hungary offers favorable tax conditions, ease in company management, and a convenient residence permit application process. To avoid errors and expedite the process, it is recommended to consult specialists who can assist at each stage of registration and visa processing.
