Register a Company in Hungary

Hungary is a wonderful old country with a lot of potential for investors. Its favorable geographical position between the Balkan and Central European countries makes it a key connecting link for trade and business. That's only one of the reasons to register a company in Hungary, and it's very promising.

Why Is It Worth It to Open Company in Hungary?

The country has become part of the EU and opened up a vast market. Separate benefits are its advantageous location near the Balkans and countries outside the EU trade zone.

This possibility opens up enormous opportunities for almost every type of activity.

When choosing directions and doing a large register a company in Hungary, we recommend the following industries:

• Medicine and equipment.
• Electronics and gadgets.
• Food and nutrition.
• Information and communication technologies.
• Automotive manufacturing and car sales.

If you have plans for other types, you can choose a company registration specifically for a specific business.

Attractive location, sizable potential audience of more than 500 million consumers, and many other factors make company formation in Hungary attractive. Among the additional advantages are the following.

Low Tax Rates

Once you open company in Hungary, you will pay only 9% tax, the lowest corporate rate in European countries. You may spend the rest of your income on business development.

Qualified Employees

The country has a lot of labor, and salaries are not that high. Therefore, you spend less, and the opportunities and potential remain the same.

Simple Procedure to Open Company in Hungary

You will be pleasantly surprised. If you organize the process with the help of specialists, the firm will appear on the market and in the Hungary business register in 5-10 working days. You will hardly find such a speed of enterprise organization in Central Europe.

Grants and Financing

Having become part of the European Union and joined the trade zone, the country has discovered a vast market. Also, everyone can apply for grants aimed at business development.

Types of Companies in Hungary

Before collecting the list of required documents, you need to decide which form of company incorporation you should choose. The state provides options for owners of different businesses.

Limited Liability Company

It's a form that provides for at least one director. There may be several investors. Liability is distributed among them by how much money each has invested in the new project. The minimum required capital is 3 million forints.

It's an ideal option for small and medium-sized businesses and is the most popular among foreign investors.

Limited Share Company

There are two types in this category—private and public. At the same time, the capital is already much higher—20 million forints. Members of the organization are not liable for the company's debts or obligations.

It is suitable for more prominent market players who want to get into the Hungary register of companies. Their main goal is to enter the stock exchange or sell shares.

Sole Proprietorship

It's the option where one person can have the right to manage his company. At the same time, the businessman also assumes unlimited liability for debts or offenses.

It is suitable for freelancers, self-employed people, and those who want to create a small business without a large number of employees.

Limited Partnership

One advantage is the lack of a minimum capital requirement. There are at least two owners. The first one bears unlimited liability for his obligations. The second owner is liable for the funds he initially invested in the company formation in Hungary. Of course, there can be more directors.

It is suitable for an organization with two or more partners, where one will bear full and unlimited liability, and the others will act more as investors.

Unlimited Partnership

There will also be two or more partners here. There are no minimum capital requirements; it can be any amount. The difference with the previous type of company is that both founders bear unlimited liability.

Who it suits: This is an ideal option to register business for small or family firms where there is complete trust between partners because everyone bears unlimited liability.

Professional Association

This type of activity is intended for those who want to conduct several areas under one name. A distinctive feature is the presence of unlimited, joint, and several liability for the organization's activities.

Who it suits: an excellent option for uniting different areas of specialists to build a single organization.

Cooperative

It's a good form for the activity where at least 7 members conduct everyday business. The amount of the contribution is spelled out in the company's charter. All members bear liability depending on their shares.

Who it suits: for conducting business affairs and meeting the social needs of people.

Commercial Representation of Foreigners

This form of ownership does not directly conduct business and trade. Its founder is a foreign company, which is considered the parent.

Who is it suitable for: to study the market before opening a trade.

Required Documents and Basic Steps to Open Company in Hungary

To get into the Hungary trade register and open company in Hungary, you need to go through the following steps:

• Choose a suitable form of ownership. Our specialists can help you with this issue based on individual needs and the size of the investment.
• Collect the necessary documents. You need to prepare the passports of all shareholders and directors, confirm their place of residence, provide a Hungarian business address (a physical office is required; you can immediately rent a room for it), and give the percentage of ownership of each shareholder. You also need to prepare a certificate of the organization's initial deposit, company acts, and operating agreements.
• Open a corporate bank account. Here, you will manage all your finances. It's a standard requirement for almost every country, and a local bank is needed.
• Registration in the Hungarian Registration Court. You will need a good lawyer to check and advise you competently on filling out all the documents.
• Obtain a Hungarian tax number and register for VAT. The latter must be done if your net income exceeds 32,000 euros.
• Receive a Certificate. After that, you can sell goods and services.

After you get into the commercial register Hungary, you are ready to conduct business.

The cost of opening a company in Hungary includes several things at once:

• Government fees (purchase of blanks and other minor expenses).
• A lawyer's consultation to organize the entire process.
• Notarized documents with an apostille (if required).
• The main capital that you and your investors will invest in is.

Since we do not know your form of ownership or how much money you want to invest, we will calculate the amount after the first consultations with our specialists.

Reasons for Contacting Professional Lawyers for Company Formation in Hungary

Firstly, after studying your goals, financial capabilities, and priorities, the lawyer suggests which form of partnership to choose. The specialist helps avoid unnecessary tax burdens and liabilities for all participants.

Secondly, lawyers help to correctly draw up all the most critical documents to register a company in Hungary. You will receive a ready version in Hungarian. Specialists guarantee the legal force and correctness of filling.

Thirdly, lawyers correctly submit all documents, including to the registration court. Registration of a company by foreigners through an electronic system is also tricky if you do it yourself.

Fourthly, pay attention to obtaining your tax number and VAT. If you make mistakes at this stage, you may face significant fines and account blocking. An experienced lawyer will do everything correctly and quickly.

Fifth, some banks (reliable ones) require the presence of a lawyer and translator when opening an account. Local specialists know the language and will advise on opening an account for a foreign citizen.

Sixth, a lawyer warns about all possible risks and the owners' financial responsibility if they plan to open company in Hungary. The specialist will also tell you how to avoid them.

Seventh, a lawyer helps overcome the cultural and language barrier. Most authorities speak only the local language, not English. Also, knowing all the peculiarities of cultural business management, the consultant will tell you about the pitfalls and tricks using examples of successful firms.

Is it possible to Buy a Ready-made Company in Hungary

Zigma helps to find a suitable ready-made firm, carry out the purchase and sale procedure, and draw up all the documents.

If you are looking for a business for sale in Hungary, you should know all the risks. Only local lawyers with deep knowledge of the nuances can help with the following goals:

• Avoid a bad credit history.
• Choose the form of ownership that suits your goals. Do not simply repurchase a ready-made option because it is for sale.
• Check all the documentation. Improper accounting, an un-updated status, and other consequences often accompany the sale of companies.
• Check for illegal activity. You will bear all debts, fines, or liability in the future.

A qualified lawyer who knows the local language may help a foreign citizen cope with purchasing a ready-made business from the current owner. If you want to reduce risks further, you can register a company in Hungary from scratch.

Do you want to buy a ready-made company in Hungary?