Company registration in Hungary - COREDO

Company registration in Hungary

Hungary, situated in Central Europe, offers excellent business opportunities. The favourable tax climate, coupled with the keen interest of local authorities in attracting foreign investments, makes it an ideal destination. The number of businessmen looking to operate within this jurisdiction is steadily rising.

Hungary boasts an industrial-agrarian economy with key sectors encompassing mining, machine building, agriculture, metallurgy, textiles, and pharmaceutical production. International tourism and the service sector also contribute significantly to the economic landscape. Emerging industries such as information technologies and renewable energy sources are experiencing rapid growth. The country’s stable economic situation further enhances its appeal to investors.

ADVANTAGES OF COMPANY REGISTRATION IN HUNGARY

In addition to financial and economic stability, this jurisdiction offers several other advantages, including:

  • Favourable geographical location.
  • European Union membership, providing access to a vast market.
  • Flexible tax policy.
  • Additional incentives for foreign investors.
  • The option to issue residence permits for employees.
  • The relative ease in registering legal entities.
  • Well-developed infrastructure.
  • A reliable banking sector.
  • One of the lowest corporate tax rates in Europe, standing at just 9% on net profit.

Hungary has double taxation avoidance agreements with over 70 countries worldwide.

AVAILABLE TYPES OF BUSINESS ORGANIZATION IN HUNGARY

Various organizational and legal forms of companies are accessible to foreign businessmen in Hungary, with the most popular ones being:

  • Kft. A limited liability company, the closest analogue to an LLC, well-suited for small and medium-sized businesses. Requires at least one natural or legal person for registration.
  • Bt. A limited liability partnership, necessitating a minimum of two partners for registration. Two types of partnerships exist in Hungary — general and limited.
  • Rt. A joint-stock company with limited liability, which can be closed (Zrt) or open (Nyrt). The number of shareholders is not limited, and it is managed by the board of directors.
  • Kkt. A partnership with unlimited liability, requiring at least two partners for the establishment, with all partners holding equal status.

For the registration of the aforementioned company types, the residency of the founders is not essential.

COMPANY REGISTRATION PROCEDURE IN HUNGARY

Registering a company in Hungary is a straightforward process, typically completed in 6-8 working days. To begin, select a unique name for the company. Gather and notarize a comprehensive set of documents, ensuring they are translated into both Hungarian and English. Complete the necessary payments associated with the registration process. It’s essential to open an account with a local bank and deposit the required portion of the authorised capital. Following these steps, your company is officially entered into the Register, and you receive a tax and statistical number.

For a streamlined and hassle-free company establishment in Hungary, consider enlisting the assistance of COREDO specialists, who boast extensive experience in this field.

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