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enfold_admin2025-03-29 18:10:582025-03-29 18:10:58Buy a ready made company in Hungary? Cost of buying a ready made company in HungaryOpen a company in Hungary: key steps, legal requirements, benefits and costs of opening a company in Hungary
Legal requirements and necessary documents
Company formation in Hungary involves fulfilling certain legal requirements and preparing the necessary documentation. Foreign entrepreneurs can establish various types of companies, but the most common and preferred option is a Hungarian Kft. (Limited Liability Company) due to its flexibility and limited liability protection.
To open a company in Hungary, you must choose a unique company name, define business activities, and prepare the founding documents. The articles of association must be signed in front of a Hungarian lawyer, as legal representation is mandatory for company registration.
Other required documents include proof of registered office address, proof of tax number and identification documents of the owners. If you are a foreign owner, you might need a Hungarian translation of some documents.
Additionally, you will need to register for taxation, including obtaining a VAT number if required. The process is relatively straightforward with legal assistance, making it easier for foreign investors.
One of the key requirements is to ensure that the company has a registered office address in Hungary. This address will be used for official correspondence and legal notices.
Another important factor to consider is the initial capital requirement. For a Kft., the minimum capital is HUF 3 million (around EUR 7,800), which must be declared in the founding documents. However, it does not need to be fully deposited before the company starts operations.
Cost of opening a company in Hungary
The overall cost of opening a company in Hungary is relatively low compared to Western European countries, making it an attractive destination for entrepreneurs looking to minimize initial expenses while maintaining access to a large market. Additionally, Hungary offers a favorable tax environment, straightforward incorporation procedures, and a strategic location within the European Union, further enhancing its appeal for business owners. Beyond the initial setup costs, companies benefit from low corporate tax rates, no withholding tax on dividends, and various government incentives aimed at fostering business growth. These advantages make Hungary a preferred choice for startups, SMEs, and multinational corporations seeking cost efficiency and access to European markets.
Timeframe and procedure for company registration
The process to open company in Hungary is efficient and can be completed within a few business days. Compared to many European countries, Hungary offers one of the fastest company registration procedures, thanks to its digitalized administration system.
The standard registration procedure involves submitting all required documents electronically to the Company Court. Once approved, the company is officially registered, and you will receive your tax number.
After registration, you need to open a corporate bank account in Hungary. This step is mandatory, and due to EU regulations, it must be done in person at a Hungarian bank. The entire process, including bank account opening, typically takes around 4-7 business days if all documents are correctly prepared and submitted. Once the bank account is opened, you can begin business operations immediately. It is also recommended to hire an accountant in Hungary to ensure compliance with Hungarian tax laws and financial regulations.
Why Hungary is a great place to start a business
Hungary has become an attractive destination for foreign entrepreneurs due to its business-friendly tax system and strategic location in Europe. The corporate tax is 9% in Hungary and the personal income tax is 15%, allowing business owners to maximize profits. Additionally, the cost of living and operational expenses are lower than in Western European countries.
Hungary’s economy is stable, with strong government support for foreign investments. The country has well-developed infrastructure, skilled labor, and a large expat community, particularly in Budapest. For those looking to start a business in Hungary, the streamlined administration and digital services make the process smooth and efficient.
Budapest, the capital city, is a particularly attractive location for businesses due to its vibrant startup ecosystem, international networking opportunities, and access to skilled professionals. The city hosts numerous coworking spaces and innovation hubs.
Furthermore, Hungary is part of the European Union, allowing businesses to benefit from trade agreements and access to the EU single market. This is a significant advantage for companies involved in import-export activities.
If you are planning to open a business in Hungary, the country provides a combination of low taxes, fast registration, and a favorable business climate. With proper legal assistance, you can establish your company quickly and start operating in one of Europe’s most promising markets. Whether you are a startup or an established business, Hungary offers the right environment for growth and success.
With the right support and guidance, opening a company in Hungary can be a smooth and rewarding process. By leveraging Hungary’s favorable tax system, strategic location, and growing economy, foreign investors can establish a successful and profitable business.
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