Company incorporation in Hungary

Hungary is a state that is very convenient for business and encourages entrepreneurs to work at its territory. Investors investing in the economy of the country have the opportunity to enjoy preferential taxation terms. They are among the most attractive in the Western European community. It can not be said that Hungary is offshore, but the requirements for business are quite comparable with the rules of "classical" low-tax jurisdictions.

The company owners receive European Taxpayer Identification Number in automatic mode, for this no documents, except for basic ones, are required for the registration. At the same time, corporate tax rates in the state are kept at the level of 9%, and there is no need to deposit the initial capital. The opening of the company in Hungary is a good decision, because:

• the director or shareholder can be any person, regardless of residence, citizenship, and place of residence;
• to create a company you do not need to come to the country personally - this can be done through the powers of attorney (but the director will have to visit the capital to open an account with the bank);
• when creating an enterprise, non-residents are given opportunities to obtain residence permits.

All registration formalities take a little time. Applying for support in "Prifinance" company, you will receive a ready-to-run business.

Process Features

The company registration in Hungary consists of several stages. Regardless of the organization form, the founders of the enterprise or persons acting on their behalf need:

• to offer three names for the future business - they are checked for duplication, a compliance with the accepted form;
• to notarize a package of documents - data on owners, shareholders, the planned activity, legal address and so on;
• to pay a fee for registration;
• to confirm the availability of an authorized capital sufficient to open an enterprise in the chosen form;
• to open a bank account.

Further, it is necessary to bring the company to the Commercial Register and get tax numbers and social insurance for the directors. Documents can be compiled in Hungarian or English. After the company is registered in Hungary, it will be necessary to submit annually a financial report audited by the auditors and pay taxes depending on the income level. Dividends to foreign organizations are also taxed at their own rates.

Which company can be opened?

In Hungary, there are several common organizational forms of business, differing in terms of responsibility, the size of the minimum capital and so on. Most often, entrepreneurs choose:

• a closed company with limited liability - the management is allowable to entrust to a single person, the open sale of securities is forbidden, half of the capital must be paid prior the beginning of the business activity, the value of non-monetary assets should be valued by a local expert;
• a partnership with limited liability - there are no requirements to the capital amount (distributed equally among the participants), there must be at least two founders, the transfer of shares is possible only after the decision of the meeting;
• a partnership with unlimited liability - the capital is distributed among equal right founders (there may be two or more of them), there are no restrictions on its amount;
• OJSC with limited liability - at the moment of opening it is necessary to pay a third part of the capital, the number of shareholders is unlimited, only individuals can be directors.

The residence of shareholders, officials, founders in all cases is not important. Our employees will tell you about the specific features of the company opening in Hungary.