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enfold_admin2024-10-18 11:56:472024-10-18 12:00:32What is the personal income tax rate in HungaryHow much does it cost to start a company in Hungary
The company formation in Hungary can be an attractive prospect for entrepreneurs due to the strategic location, favorable tax environment, and well-developed infrastructure. However, one of the most crucial considerations when planning to establish a company is understanding the associated costs.
This article outlines the various expenses involved in forming a company in Hungary, providing a comprehensive overview for prospective business owners.
- Legal costs
The first step in starting a company is the registration process, which involves various fees. The STANDARD Package includes all government fees and the legal process of the company formation including the online signing process as well. At the end of the process you will get your company registration number, the statistical number, the personal tax number and the EU VAT number and the local TAX number. The English and Hungarian double language documentation is also included in the price and the registered seat for the 1st year.
- Minimum Share Capital
For a limited liability company (Kft), the minimum share capital requirement is HUF 3 million (approximately €7.500). It’s important to note that while this capital is a requirement, it can be increased as the business grows.
- Office and Operational Expenses
The 1st year fee of the registered seat is included in the price if you pick the STANDARD Package or the BUSINESS Package or the PREMIUM Package. Setting up an office is another significant cost to factor in. While it is possible to start a business from home with a registered office, many entrepreneurs choose to rent commercial space. So if you also need physical office, the office rental prices in Hungary can vary greatly depending on the location and size, starting from at least 250 EUR per month. Additionally, consider expenses for utilities, internet, and office supplies, which can add up quickly.
- Accounting and Tax Services
Once your company is registered, ongoing accounting and tax services are essential for compliance. Accountancy cost can start from 100 – 120 EUR per month, depending on the complexity of your business operations. It is crucial to maintain accurate financial records to avoid potential legal issues and to ensure that you are meeting your tax obligations.
- Insurance
Obtaining insurance is a vital part of safeguarding your business. Various types of insurance, including liability and property insurance, can range from HUF 20,000 to HUF 100,000 annually, depending on the coverage and the nature of your business. This investment helps mitigate risks and protect your assets.
- Additional Costs
Other potential costs may include translation costs, marketing expenses, website development, and any specific licenses or permits required for your business sector. These can vary widely based on your industry and business model.
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