Several individuals have chosen to set up their business in Hungary due to the many advantages that come with it. From being located in the core of the EU, to the incredibly low corporate tax rates; it’s not hard to see why it can be a good idea. However, just like in any part of the globe, starting up a new business won’t be without its challenges.
Need a little more information on company formation in Hungary? Don’t worry, we’ve got you covered with all the information you need.
4 steps to registering a company in Hungary
To make the process as simple as possible, we’ve broken it down into 4 simple steps.
1. Prepare all the necessary documentation
First of all, the company’s constitutive document will need to be signed by its founders. There will be other types of documentation that need to be countersigned by an attorney to legally establish a business, specifically a Hungarian one, so keep this in mind.
The good news is that a reputable lawyer won’t be hard to find and as their costs are likely to vary from one firm to another, shopping around for the right one should prove to be relatively easy.
2. Open a Hungarian bank account
Before you can proceed any further, you’re going to need to open up a new bank account in Hungary (if you don’t already have one). When registering a business, the account you link to it needs to be created within one day, so it’s best to get started as soon as you’re able.
3. Registration at the relevant authorities
Once you’ve got the documentation signed and a Hungarian bank account opened, the next step is to establish the company at the court of registration. Typically speaking, the application must be submitted electronically, via a legal representative. You won’t need to deal with the state tax authority yourself, as the court of registration will obtain the company’s tax number directly.
Outside of the Court of Registration, you will still need to have a company representative or tax specialist take care of administration to establish the business with the relevant Hungarian tax authority. In general, this also needs to be completed in a day, although it shouldn’t come at any extra charge to you.
4. Provide the necessary employee data
Finally, if you’re an employer, you’re likely going to have to electronically submit data on your employees on the Government Portal for the relevant tax authorities. This should be done on the same day of the legal insurance relationship, so like with the other steps, it’s not something you should be taking your time with.
As you can see, registering a company in Hungary is a process that requires speed and efficiency, as well as good legal representatives. With most of the steps needing to be completed in relatively short time frames, you may feel the pressure, but ultimately, establishing your business sooner rather than later is going to be of benefit.