Forming a company can be a rather extensive process wherever you are in the world, but with the number of benefits that can come with setting up in Hungary, it’s not hard to see why a variety of individuals choose to start businesses in this part of Europe.
There are quite a few things that you’re going to want to think about before taking the leap – and if you’re not even certain on where to begin, this could be the perfect guide for you.
1. Initial Documents
So, what do you need to know about company formation Hungary? Where you start can be one of the most essential parts of the process, so it’s important that you set off on the right foot.
Often, it all begins with document preparation. You could have as little as a day to complete the requirements, such as signing the constitutive document and other important papers, all of which will need to be countersigned by your (Hungarian) attorney.
The fees of an attorney can often vary quite a bit from professional one to another, so it might be worth taking the time to find the most relevant one before you begin (choosing someone who specialises in a different niche may not be as useful, for instance).
Additionally, once this is done, you’re going to want to open up a Hungarian bank account if you don’t already have one.
Next, you will need to establish your company with the Court of Registration. This is a requirement for all businesses and sole traders in Hungary. Your application will need to be submitted by a legal representative electronically and in return, you’ll receive a digital certificate of registration.
They will also secure your tax number and create a statistical code for the electronic system. This will be given to the correct department, so the individual doesn’t have to go to the state tax authority (or similar legal entity) before their registration. However, a representative will need to report to the relevant establishment in the space of 15 days after the company registration application is submitted.
Certain documentation will be necessary for this to both move forward and be successful, such as a list of all members. In this situation, you’ll often need a capable accountant, a Hungarian bank account and a registered address to ensure smooth sailing.
3. Employee Data
After enrolling, you are obliged to electronically provide data relating to employees on the Government Portal. There is a specific form for this that the relevant state tax authority will need, and it should be submitted by no later than the end of the first day of your legal insurance relationship (and before employment begins).
General notes on company formation in Hungary
Now that you know the three main steps of registering and starting a company in Hungary, it’s time to move on to some key information that you might find useful during your journey.
It’s a swift process
One particular benefit of forming a company in Hungary is the fact that it can often be so quick to do – although this does mean that you’ll have to put in the effort to make sure that you have everything present and correct when you get the ball rolling. The relatively short timeframe can work against you.
There are lower taxes
If you’ve looked into the benefits of forming a company here, you’re likely to know that the income tax is far lower, which is certainly attractive.