The Hungarian economy is diverse, with a strong focus on manufacturing, agriculture, and services. The country has a well-educated populace, and the cost of labor is relatively low compared to other European countries.
Hungary is a country with a growing economy that has been attracting foreign investors for years. The corporate environment in Hungary is favorable for entrepreneurs with a wide range of opportunities available. Starting a business here is a wise decision for those looking to expand their business or invest in a new venture.
Types of business structures
When starting a business in Hungary, it is important to choose the right corporate structure. The most common types of corporate structures in Hungary are sole proprietorship, limited liability firm (LLC), and joint-stock company (JSC). The sole proprietorship is the easiest and cheapest option, but it offers no protection for personal assets. LLCs and JSCs provide limited liability protection but have higher filing fees and more complex legal requirements.
To register a sole proprietorship in the country, one needs to obtain a tax identification number and register with the local tax authority. LLCs and JSCs require a more complex filing process, including drafting articles of association, obtaining a firm seal, and registering with the Companies Register. LLCs and JSCs also require a minimum share capital of HUF 3 million (approximately USD 10,000) and HUF 20 million (approximately USD 70,000), respectively.
Steps of business registration
Company registration in Hungary involves the following main steps.
Name Registration
The first step is to choose a firm name and verify its availability. This can be done online through the Hungarian Company Information and Electronic Company Registration System.
Prepare the articles of association
The owner must prepare the corporation’s articles of association and memorandum of association. These documents must be notarized and submitted to the court of registration.
Open a bank account
The subsequent stage is to open a bank account for the firm and deposit the minimum share capital required by law. This amount is currently HUF 3 million (approximately EUR 8,300). Once the share capital is deposited, a bank certificate must be obtained and submitted to the court of registration.
Sign up with the court of registration
The company must register the firm with the court. This can be completed digitally or in person by visiting the court. The court will review the firm’s documents and issue a filing certificate if everything is in order.
Register with tax authorities
Finally, the company must register with the tax authority and obtain a tax number. This step is necessary for any business to operate in the country. By tax filing, businesses can establish a legal presence in Hungary and take advantage of the country’s favorable tax climate.
Documents required
When registering a company in Hungary, several documents are required. These documents include
- A copy of the memorandum of association,
- Articles of association,
- A copy of the certificate of incorporation,
- The tax identification number,
- A duplicate of the vat filing certificate,
- A print of the bank account specifics, and
- A copy of the lease agreement.
It is important to note that all of these documents must be notarized by a Hungarian notary public. Additionally, all documents must be translated into Hungarian by an official translator, and the translations must also be notarized.
Once all of the required documents have been gathered and notarized, they must be submitted to the Hungarian Company Registration Office. The filing process typically takes between one and two weeks, and once the syndicate is registered, it will be issued a registering number and be able to conduct business in Hungary.
