Why the Hungarian company formation is essential for your European business?

Best country to start a business in Europe

Why the Hungarian company formation is essential for your European business?

Best country to start a business in Europe

Why Hungary is the perfect destination for your company formation

Setting up a new company or expanding your business to a foreign country can be an exciting, yet challenging venture. When considering the right destination for your company formation Hungary emerges as an attractive option with its favorable business environment, strategic location, skilled workforce, and supportive government policies.

Strategic location and access to markets

Hungary enjoys a strategic location in the heart of Europe, making it an ideal gateway to both Western and Eastern European markets. It is well connected through an extensive network of highways, railways, and airports, facilitating easy access to major European cities. Furthermore, Hungary is a member of the European Union and benefits from the free movement of goods and services within the single market, ensuring access to over 500 million consumers.

Competitive economy and business-friendly environment

Hungary boasts a competitive and open economy with a strong focus on entrepreneurship and innovation. The country has implemented several reforms to streamline business processes, reduce bureaucracy, and improve the ease of doing business. According to the World Bank’s Doing Business 2020 report, Hungary ranks 52nd out of 190 countries, highlighting its business-friendly environment.

Favorable tax system

One of the major attractions for businesses considering Hungary as their company formation destination is its favorable tax system. The country offers a low corporate tax rate of 9% on profits, one of the lowest in Europe. Additionally, Hungary has an extensive network of double taxation treaties, providing companies with the opportunity to minimize their tax liabilities and avoid double taxation.

Skilled workforce and competitive labor costs

Hungary boasts a highly skilled and educated workforce, making it an excellent location for businesses seeking talented employees. The country has a strong focus on education, and its universities and technical schools produce a stream of qualified professionals in various fields. Moreover, Hungarian labor costs are significantly lower than those in Western European countries, providing companies with a competitive advantage.

Strong industrial and R&D base

Hungary has a well-developed industrial sector, particularly in areas such as manufacturing, automotive, engineering, information technology, pharmaceuticals, and biotechnology. The country has attracted numerous multinational corporations that have established their production facilities or research and development centers in Hungary. This strong industrial and R&D base creates a favorable environment for collaboration, knowledge sharing, and innovation.

Quality of life and cultural heritage

In addition to its favorable business environment, Hungary offers an excellent quality of life and rich cultural heritage, with its vibrant capital city Budapest known as the “Pearl of the Danube.” Hungary boasts a low cost of living compared to other European capitals, an excellent healthcare system, safe environment, and a wide range of recreational and cultural opportunities.

In conclusion, Hungary stands out as an attractive destination for company formation due to its strategic location, competitive economy, favorable tax system, skilled workforce, supportive government initiatives, and high quality of life. Whether you are looking to expand your business or start a new venture, Hungary provides a conducive business environment that can propel your company’s growth and success. Consider Hungary as your next destination for company formation and unlock the vast opportunities it has to offer.