Starting a cheap business in Europe is an increasingly attractive opportunity for entrepreneurs, freelancers, and digital nomads alike. With easier access to international markets, digital tools, and business-friendly regulations, many are looking for cost-effective ways to establish a cheap company in Europe. Hungary stands out as one of the most advantageous locations in the EU for setting up a company.
Why Choose Hungary?
Hungary offers a fast, affordable, and efficient company formation process – making it ideal for anyone seeking a cheap company setup EU.
- Lowest corporate tax in the EU: Just 9%, which is unmatched across the Union.
- Fast registration: Your company can be officially registered within 1–3 business days, fully online with legal support.
- Low share capital requirement: You can start a limited liability company (Kft.) with only HUF 3,000,000 (~€7,000–8,000), which can be used for operational expenses after registration. It’s important to note that the initial share capital does not need to be paid in full upfront — it can be financed from the company’s operations over a period of up to two years.
- Instant EU VAT number: Your Hungarian and EU tax numbers are issued immediately after registration.
- Fully remote process: No physical presence is required; documents can be signed via Skype or other verified online platforms.
What Type of Business Entity Should You Choose?
Choosing the right legal structure is essential. The cheap LLC Europe model – known as “Kft.” in Hungary – is ideal for most small and medium-sized businesses. Sole proprietorships can be started faster, but they’re less scalable and don’t offer limited liability. A Hungarian Ltd. (Kft.) provides the perfect balance of legal credibility, tax optimization, and EU-wide recognition.
How Does Hungary Compare to Other EU Countries?
Hungary is a competitive choice when compared to other EU member states for cheap company setup EU purposes:
- Bulgaria offers lower startup costs and a 10% corporate tax rate, but the digital administration system is less advanced.
- Estonia is popular for its e-residency program but comes with higher ongoing monthly costs (€200–300/month).
- Romania, Latvia, and Croatia may offer similar setup fees, but Hungary’s tax stability, digital processes, and overall simplicity make it a more reliable long-term option.
Bank Account and Financial Operations
After forming your company in Hungary, you can open a business bank account either at a local bank or with international fintech providers such as Wise, Revolut, or Payoneer. These options are particularly valuable for digital-first businesses and those operating in international markets.
What Does company-formation-hungary.com Offer?
The Company Formation Hungary team offers a range of services tailored to cheap LLC Europe needs:
- “Company Formation Only” package from just €660 – ideal if you already have a registered office and local representative.
- “100% Remote Company Formation” package: €770, including remote identity verification via video call.
- Full-service packages including registered office, representation, and basic accounting: from €1,980 to €2,640.
What Makes a Company Truly Affordable?
- Low startup cost: Total investment, including capital and services, starts around €8,000. It’s important to note that the initial share capital does not need to be paid in full upfront — it can be financed from the company’s operations over a period of up to two years.
- Low operational costs: 9% corporate tax, no hidden fees, and transparent accounting rates.
- Speed: The company can be up and running in just a few days.
- Real EU presence: You gain access to the full EU market, even without a physical office or local staff.
Who Should Consider a Cheap Business in Europe?
- Digital nomads and startups looking to enter the EU market quickly and affordably.
- Freelancers and SMEs wanting a legal entity to serve European clients.
- Entrepreneurs seeking tax optimization, simplified bureaucracy, and transparent pricing.
FAQ – Cheap Business in Europe
Do I need a Hungarian address to start a company?
No. Foreign individuals can register a company without local residency or permanent presence.
Can I open a business bank account remotely?
Yes, with the right provider (e.g. Wise or Revolut), the entire process can be handled online.
Which industries are best suited for this model?
Online services, IT, e-commerce, consulting, and digital products are particularly well-matched with this setup.
How to Get Started
- Choose the service package that fits your needs – whether it’s remote-only or full service.
- Make sure you have a registered office address, or use a virtual office provider.
- Contact the Company Formation Hungary team for a free consultation and start your cheap company in Europe within days!