To make the process of company formation in Hungary easier, potential investors looking to form a company should have a legal representative. This legal representative will be the appointed contact person for any communication and dealings with Hungarian authorities, including the registration process, and should be a resident of Hungary.
The registration and establishment process typically takes about 3-4 weeks, with the first step being to book a company name at the Companies Registry in Hungary. The company name must be unique and include one of the following suffixes: Kft, Kht, Bt, or Zrt.
Documents you Need
To complete the registration process in Hungary, a range of documents must be prepared and submitted, including:
- A notarized copy of the investors’ and general manager(s) passports and proof of address.
- Specimen of signature.
- Documents outlining the planned activities of the business.
- Agreements of assignment.
These documents are submitted electronically to the Hungarian Tax Office and Companies Registry, with all fees for the registration process being paid upon submission.
Once the documents have been received and approved, the company is officially registered and issued a company certificate. The company must then open bank accounts in Hungary, submit all documents to the chamber of commerce, and the business must be publicly advertised in two local newspapers.
Once all this is completed, the company can begin trading in Hungary and will be subject to Hungarian taxation. Taxation in Hungary depends on the type of entity chosen, and forms such as the annual financial statement must be filed with the Hungarian Tax Office.
Here are the benefits of forming a company in Hungary:
- The business environment is conducive to the success of companies.
- The country has one of the lowest corporate tax rates in Europe.
- Hungary has a skilled and educated workforce.
- Access to the European Union market is easy.
- The country has a high level of government support for foreign investors.
- Hungary offers a range of incentives to attract foreign investment.
- Hungary is geographically positioned in the middle of Europe, giving easy access to important markets.
- Hungary has an excellent infrastructure, making it a great place to establish business operations.
- The cost of living in Hungary is lower than in other European countries.
- The country has a well-developed banking and financial system.
Overall, company formation in Hungary can be a relatively straightforward process, provided all documents are correctly completed and submitted and the correct steps are taken with regard to taxation. With a legal representative on board to guide them through the process, investors can be assured that they are adhering to the relevant regulations and can focus on growing their business.
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