Hungary is a state in Central Europe, which every year attracts an increasing amount of foreign investment. The popularity of the jurisdiction is largely due to minimal taxes and liberal legislation in general. Company registration in Hungary is a profitable option for anyone who wants to gain access to the EU market without suffering from state control.
How much does it cost to establish a company in Hungary?
The cost of the company establishment in Hungary from the Lawrange team is 2950 euros. The price includes a basic package of services, including:
- direct registration of the enterprise;
- agency service;
- hiring a secretary;
- lease of a legal address;
- opening a bank account (with a personal visit of the director);
- obtaining the necessary documentation for the enterprise.
The term of the procedure for registering a company in Hungary is from 3 to 9 working days. Based on the results of our legal support, you will receive an Extract from the Register, Articles of Association, Registration Protocol – all the necessary evidence of establishing a business in the Hungarian jurisdiction.
Features of registration in Hungary
Company registration in Hungary is possible in various organizational and legal forms – the local legislator does not put any obstacles for foreign investments and organizations. The most profitable form is Kft (similar to LLC). This organization can be registered by both an individual and a legal entity. The minimum authorized capital for Kft is 3 million HUF. At the same time, the paid part at the time of creation must be at least 50% of the established amount.
To set up a company in Hungary, a personal visit of the founder to the country is required. The head must provide a notarized translation of the passport (into English). In addition, you also need to open a bank account at a local bank.
Also, a company in Hungary can be registered remotely by a signed power of attorney for our representative.
With the help of Lawrange, you can not only prepare the necessary documentation, but also open a current account in one of the local banks in Hungary. To open an account in a Hungarian bank, a personal visit of the director and shareholder to the bank will be required to submit an application form and sign banking forms.
Do not forget about the need to hire an accountant. Professional services will cost from 80 euros per month. Lawrange will take care of hiring a reliable professional for your case.
What taxes do businesses pay in Hungary?
The Hungarian jurisdiction establishes the following tax obligations for commercial enterprises:
- income tax – 9%. For IT companies, there is the possibility of registering the IP BOX mode, which reduces the amount of the obligation by 50%;
- VAT. The rate is 27% (for services and products). There are preferential terms under which the amount of the obligation is 5-18% (for example, for the production of medicines or books);
- dividend tax. From 0 to 9%.
Thus, company establishment in Hungary is beneficial primarily for advanced organizations that are associated with information technology and pharmaceuticals.
What do you need for registration?
You will need a notarized copy of your passport with a translation into English, three options for the name of the organization, a description of the activity and a questionnaire with a business plan. In the case of a remote company registration in Hungary, you will need to sign a power of attorney according to the provided sample. We prepare the rest of the documentation ourselves (Protocol, Charter etc).
Strengths of the Hungarian jurisdiction
Company registration in Hungary allows a business to enjoy the following benefits:
- minimum taxation. If you do not become a VAT taxpayer, then the rates in Hungary are among the lowest in the EU;
- membership in the EU. Guarantee of access to the world market;
- prestige of the region;
- lack of currency control;
- no requirements for resident status.
If you want to become part of a developed economic zone with a lot of opportunities for self-realization and profit, then company formation in Hungary is a profitable option. The Lawrange team knows how to reduce your costs and time to create your own business in the country
The cost of company registration in Hungary
The price of Lawrange legal services is 2950 euros. The price includes comprehensive legal support.
What do you need to register a company in Hungary?
You will need a notarized translation of your passport, three options for the name of the company, a description of the activity and a brief business plan, a power of attorney for remote registration. Everything else Lawrange cooks on its own.
Advantages and disadvantages of jurisdiction
Pros: prestige of the European region, loyal legislation, a large number of benefits for foreign investment, no requirements for resident status. There is only one drawback – if you become a VAT payer, you will have to pay the highest tax rate in the region.