Hungary is a country with a stable economy and a highly educated workforce, making it an attractive destination for businesses. The process of registering a company in Hungary is straightforward and can be completed in a relatively short period of time, with the right preparation and understanding of the costs involved. In this article, we will outline the steps involved in registering a company in Hungary and provide an estimate of the costs involved.
Choose a Company Name
Firstly, in registering a company in Hungary is to choose a company name. The name should be unique and cannot be identical to or similar to an existing company name. Once you have chosen a name, you should check its availability by visiting the Hungarian Trade Register website.
Appoint Directors
Then appoint directors for your company. A minimum of one director is required, and the director can be a resident or non-resident of Hungary. The director is responsible for managing the company and making decisions on behalf of the company.
Register the Company
Once you have chosen a name and appointed directors, you can register your company with the Hungarian Trade Register. This can be done online or in person at the Trade Register office. You will need to provide the following information:
- Company name
- Address of the registered office
- Details of the directors
- Details of the shareholders
- Type of company
- Capital requirements
- Business activities
Obtain a Tax Identification Number
Once your company is registered, you will need to obtain a Tax Identification Number (TIN) from the Hungarian Tax Authority. The TIN is required for tax purposes and will be used to identify your company for tax purposes.
Open a Bank Account
Finally, you’ll need to open a bank account. This can be done at any bank in Hungary and you will need to provide your TIN and proof of identity. There are several banks in Hungary that offer corporate banking services. For instance, OTP Bank is one of the largest banks in Hungary and offers a range of corporate banking services, including corporate current accounts, trade finance, and business loans.
K&H Bank is another major bank in Hungary that offers a range of corporate banking services, including corporate current accounts, cash management, and trade finance. Erste Bank is an international bank with a presence in Hungary, offering a range of corporate banking services, including corporate current accounts, trade finance, and business loans.
You can also choose UniCredit Bank, which is a multinational bank with a presence in Hungary, offering a range of corporate banking services, including corporate current accounts, trade finance, and business loans. Last but not least is Raiffeisen, a leading cooperative bank in Hungary, offering a range of corporate banking services, including corporate current accounts, trade finance, and business loans.
Approximate Costs of Setting up a Company in Hungary
The costs of registering a company in Hungary can be float, but typically include legal and administrative fees, rental or purchase of commercial space, and marketing and advertising expenses.
Legal and administrative fees can range from HUF 200,000 to HUF 1,000,000, depending on the complexity of the business structure, while the monthly rent for a 100 square meter office in Budapest, the capital of Hungary, can range from HUF 200,000 to HUF 400,000.
Marketing and advertising expenses can also vary widely, depending on the size and type of business, and can range from HUF 50,000 to several hundred thousand forints.
In addition to these costs, businesses in Hungary are also subject to corporate tax, which is set at 9%, and value-added tax (VAT), which is set at 27%.
Conclusion
Incorporating a business in Hungary comes with several benefits, such as a well-educated labor pool, a stable economic climate, and a favorable corporate tax rate. The steps involved in establishing a company in Hungary are manageable, but it’s crucial to plan and prepare thoroughly, including obtaining a comprehensive knowledge of the costs involved. With the right preparation and cost awareness, starting a business in Hungary can prove to be a rewarding and profitable endeavor.
