Company registration in Hungary

Company registration in Hungary and the types of companies

There are various types of company registration in Hungary, including parent companies, limited partnerships (Bt), Unlimited partnerships (Kkt) and holding companies. But foreigners who are registering a company for the first time in Hungary can only register a limited liability company called KFT. Taxes are very low for this type of company. In this type, only one shareholder can be introduced for the company. This shareholder can be of any nationality (natural or legal person). There can be only one shareholder, the number of shareholders has no limitation.

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Topics reviewed in this article:

• Company registration in Hungary and the required costs
• The advantages of company registration in Hungary
• Company registration in Hungary and the services and lawyers of the MIE institution
• Company registration in Hungary and the registration process
• Company registration in Hungary and business plan
• Company registration in Hungary and important points

Company registration in Hungary and the required costs

The minimum capital which is required to register a company in Hungary is 10,000 Euros (3 million Hungarian HUF), which can be withdrawn after the registration. The cost establishing and registering a private company is 5,000 forints in Hungary. In any other case such as unlimited partnerships, limited participation and limited liability company there is no cost and it is free.

The advantages of company registration in Hungary

Some of the most important advantages of registering a company in Hungary are:

• Tax liabilities for a period of time and being able to apply for a permanent residence permit after 3 years
• Being able to apply for a passport 5 years after getting a permanent residence permit
• Getting a residence permit in Schengen are (Schengen visa) for all family members
• Having access to all parts of Schengen are in Europe for traveling, doing business and getting a long-term residence
• One hundred percent (100%) ownership without the need for a local partner
• Low initial capital that does not require to be deposited
• Access to the European market
• Use of European brand
• Use of the European brand for import / export by using trade laws and free customs within the EU
• Low costs of Company management and Company strategy
• Online banking, credit cards, facilities and lines of credit
• Opening a corporate (company) and personal account
• 9% income tax on corporate (company)
• Taking all of these steps within 6 months
• Registering a company in 2 to 3 working days

This article has been prepared by the Malekpour Law Firm, a partner of MIE Austria, and copying it without mentioning the source is illegal and against the law.

Company registration in Hungary and the services and lawyers of the MIE institution

When a Hungarian company is registered by the help of a lawyer, you will get all of the supports you need for your company’s business. Startup packages include business registration, VAT registration, opening a bank account and basic accounting. Depending on the location and nationality of the individual, the attorney may be able to conduct the entire process without the client’s presence (through attorney). If you do not know where to start – or if you want to start a business without bothering yourself, you must go through the process of registering a company in Hungary by the help of an international lawyer. With more than ten years of experience in immigration, MIE institute will assist you in your investment with its headquarters in Vienna, Austria, by the help of an Austrian lawyer.

Company registration in Hungary and the registration process

The company registration process in Hungary can be categorized as follows:

• Preparing a share split agreement, applying for a company registration and company articles of association and submitting it to the Embassy of Hungary
• Having a real workplace in Hungary
• Having a manager (In order to register a company in Hungary, managers can be of any nationality – a legal or natural person)

All of the required documents for registering a company in Hungary must be officially translated and approved by the Ministry of Justice and the Ministry of Foreign Affairs.

• Identity documents (along with official English translation)
• Marriage certificate for married applicants
• The address of the office
• Scanning the passports of shareholders and managers
• Pay for all banking expenses of the first 1 year
• Economic justification plan
• Minimum amount of 2000 Euros as the initial capital of the company
• Ownership document and a print of bank account
• Copy of the latest degree (qualifications)
• Phone bill or an official bill to confirm the address
• 6 photos
• Clearances (certificate of no criminal records)
• Power of attorney that must be signed by the client.

Company registration in Hungary and business plan

Business plan is very important in registering and starting different types of businesses. It actually examines which market segment (local or global) will be looking forward to use your product or service. The answer to this question cannot be based on speculation and must be based on correct and scientific research. Existing information from the previous researches should be analyzed alongside the new information you get from new observations. When it comes to company registration in Hungary, presenting a business plan is an expertise in economics that must be done by an experienced lawyer.

These should be considered in a business plan:

• Executive summery

Outlook  and vision of a company

• General description of the company

An overview of the company and the services that it provides to its target market

• Products and Services

A description of the specific products or services with details.

• Marketing plan

Description of how you want to offer your product or services to your customers.

• executive plan

Find out what your daily business plan is like.

• Management and organization

The registration of the company in Hungary will be based on the structure of the organization and the philosophy under which the company will operate.

• Financial plan

Pattern of financial performance of business and investment goals

Company registration in Hungary and important points

As mentioned, in Hungary the corporate income tax is lower than in other European countries. Hungary is one of the countries that automatically issues the EU VAT code of the European Union. Foreigners who register a company for the first time in Hungary can only register a limited liability company called KFT. The possibility of getting a permanent residence permit in Schengen area and the European Union is one of the important and significant points in this type of investment.