Looking to start a business in the European Union? Hungary, a charming Central European country, offers many opportunities for entrepreneurs. With a corporate tax rate of only 9%, it provides the most favorable tax environment in the EU.
In this article, we will discuss why setting up a business in Hungary is advantageous, how to do it, and why it’s wise to enlist the help of a legal expert.
For one, Hungary’s strategic location in Central Europe makes it an ideal base for expanding your company into the European market. As a member of the EU, Hungary offers access to a market of over 500 million people.
Additionally, Hungary boasts a highly skilled and educated workforce, available at a relatively low cost, which allows businesses to reduce their labor expenses while maintaining quality staff.
Finally, Hungary’s tax system is designed to attract foreign investors, offering the lowest corporate tax rate in the EU.
How to set up a business in Hungary?
Registering a company in Hungary is a straightforward process that can be completed in just one day. Here are the necessary steps:
Choose a business structure – Hungary offers several business structures, including sole proprietorships, limited liability companies, and joint-stock companies. Select the one that best fits your requirements.
Choose a name – The name of your company must be unique and not already registered in Hungary. You can check name availability on the Company Information and Electronic Company Registration System.
Register the company – To register the company, you need to provide specific documentation, such as the company’s articles of association, the names and addresses of the company’s founders, and the registered office address. You must also provide proof of identity and address for all company founders.
Obtain a tax number – After registering the company, obtain a tax number from the Hungarian Tax and Customs Administration.
Open a bank account – Your company must have a Hungarian bank account to conduct operations.
Register for social security – If you plan to hire employees, you must register with the Hungarian social security system.
Why seek legal help when establishing a company?
Although setting up a company in Hungary is a simple process, it’s advisable to seek legal assistance. A lawyer can provide the following:
- Legal advice on the best business structure and navigating legal requirements
- Assistance with documentation, including the articles of association
- Translation services if you’re not fluent in Hungarian
- Representation in front of authorities to ensure legal requirements are met
If you’re planning to register a company in Hungary, Budapest Consulting can offer the necessary support and guidance for a smooth and successful process. Our team of experts can help you with company registration, including required documents and the company name registration process.