Hungary is one of the EU countries with the easiest and fastest way to create a company, with company registration that includes a complete intra-community tax identification number in just 4-5 days. One of the benefits of creating a company in Hungary is the corporate tax, which has dropped to 10% in 2010.
By incorporating a partnership in Hungary with M&G Consulting, companies will receive all the necessary support to ensure that they operate correctly. M&G’s services include a complete package of the articles of incorporation, Setting up a company in Hungary with the corresponding Authorities and registering for the VAT number, opening a bank account, and optionally, a complete accounting service. Depending on the location and nationality, M&G can carry out the entire process of creating the business without a physical presence in Hungary (through a power of attorney).
For owners who do not own or do not need a physical office in Hungary, the service of a registered office is available. This is an official company address with mail forwarding and administration starting from the simple handling of mail to an office or more complex virtual office (in-calling secretarial services, customer service, etc.)
New owners find they can take on the burden of starting the business at very affordable prices – including bureaucratic tasks, such as residence and work permits, or operating licenses.
In Hungary the Following Types of Companies can be Created:
The most recommended companies for foreign investors are those whose holders are by virtue of a participation in the capital stock through shares (public or private). Depending on the needs of investors, the nature of their business, the share capital and, the type of responsibility they want to assume, they can set up different types of companies in Hungary:
- KKT – Collective Society. All partners respond with their own assets to pay outstanding debts of creditors.
- BT – Limited Partnership. It is characterized by the coexistence of collective partners and limited partners. The former is unlimitedly liable for corporate debts and participates in the management of the company, while the others limit their liability to capital and do not participate in management.
- RT – Corporation. There are both public and private corporations. In this type of company, the shareholders do not respond with their personal assets to the debts of the company, but only up to the limit of the capital contributed.
- KFT – Limited Company. Unlike the Corporation, it cannot be a public corporation. The minimum share capital is 3 million HUF.
Hungary as a Business Center
Hungary is an EU Member State, located in Central Europe, in the heart of the continent. Financial and logistical advantages await Latin American investors, who are always welcome in this country, which is full of opportunities.
From several airports scattered throughout the country, entrepreneurs can reach all European destinations, including Ukraine and Russia. There are also daily air connections with the independent nations of the former Soviet Union and with China. It is good to know that life in Hungary is much cheaper than in the western EU nations, even if those countries are close enough, like Vienna in Austria, which is just over two hours’ drive from Budapest.
5 Steps to Setting up a Company in Hungary
Incorporate a Company in Hungary
Setting up a company in Hungary is a procedure based on the legal system that applies to all EU countries.
Step 1
Prepare the documents by a lawyer registered in Hungary, sign these documents by the founders of the business and legitimize their signature in front of the Hungarian lawyer.
Step 2
Open a bank account.
Step 3
Register the company in the Hungarian Property Registry and obtain the tax identification number.
Step 4
Register the company with all the relevant Hungarian authorities.
Step 5
Register employees in the Public Treasury. Some companies require licenses to study individually.
Main Characteristics of Limited Liability Companies:
- This is the most common form of business in Hungary
- One partner and one director are enough
- Liability is limited to the capital inflow of the shareholder
- Minimum share capital is HUF 500,000 (approx. € 1,900)
- Partners can be and foreign companies
Information Needed To Create a Company in Hungary
- Company name
- Address of the company (or choose our headquarters service)
- Social object
- Define the amount of the initial capital
- Member contributions
- The data of the shareholders: the name, personal data, the general manager of the company, the mother’s maiden name, passport, or European identification number.
