Company Formation in Hungary   PROFESSIONAL BUSINESS SERVICES

Full of advantages

• Foreign individuals, companies, social organizations or other entities can set up and own Hungarian businesses.
• A single member is eligible to form a business.
• Only one managing director needs to be appointed (who may be a foreigner).
• Company registration within a few days.
• Government fee of HUF 15,000.
• Immediate VAT number with the eligibility to trade with all EU Member States free of VAT.
• A minimum share capital of app. EUR 1,800 (HUF 500,000), which can be withdrawn after incorporation.

Competitive taxation system

• Books may be kept in EUR.
• Corporate income tax: 10% (for turnover of up to HUF 500 Million, and a tax rate of 16% on the amount of profits above the margin).
• Local business tax: 0% to 2% subject to the location.
• Tax on divident: 0% for foreign individuals and businesses.

Within the EU area, Hungary is the country with the lowest tax rates for foreigners, along with Cyprus and Malta.

Favorable business environment

Hungary is a full-fledged member of the EU. While the euro has not yet been introduced as an internal currency it can nonetheless be used in every type of settlement.

• The share of foreign working capital exceeds 60% of the GDP.
• Availability of high-quality and inexpensive raw materials.
• Inexpensive and well-qualified workforce.
• Given its geographic location and its market potential, as well as its EU membership and diplomatic ties, Hungary offers an excellent opportunity to enter the markets of the developed EU Member States.
• Developed public road and fluvial infrastructure, extensive freight network, a European distribution center.
• An extensive IT infrastructure of high standards (administration, banking system, authority procedures).
• Free flow of capital and labor within the EU.
• Hungary is a member of Customs Union, allowing for significant savings in time and administration when trading with other EU Member States.
• A favorable tax environment.
• The English language is widely used with the option of foreign language bookkeeping.

Unbeatable packages

Standard - EUR 500

• Incorpoartion
• Statutory fees are included
• Formation with individual members

Extra - EUR 2,700 /year

• All standard services
• Registered office service for one year
• Accounting services for one year

Business EUR 6,700 / year

• All standard and extra services
• Provision of Managing Director
• Hold mail and forwarding service for one year
• Opening of bank account

Additional services:

• Registered address service: EUR 100 / month
• Accounting: EUR 150 / month
• Managing director: EUR 350 / month
• Hold mail and forwarding: EUR 50 / month
• Opening of bank account: EUR 200

Set up a business without presence is also possible. Proceeding through Hungarian Consulate abroad is possible. In this case fees of signatures and consular notarization make some extra costs. If the business is established by a foreign company, certified translation of original corporate deeds is charged as an extra cost.