BUSINESS (COMPANY) REGISTRATION IN HUNGARY

BUSINESS (COMPANY) REGISTRATION IN HUNGARY

Author

Prykhodko Andrii

BUSINESS (COMPANY) REGISTRATION IN HUNGARY

Therefore, there are questions about how to do business in Hungary? What is the price of opening a company in Budapest? What is the best organizational and legal form of entrepreneurial activity?

How to do business in Budapest? But what are the advantages of registering an LLC or a sole proprietorship in Budapest?

The following requirements must be met in order to operate as a sole proprietorship in Hungary:

To register a private enterprise in Hungary as a foreigner, you must have a tax number and a social security number as an individual. If these numbers are not available, you must submit an application form 16T34 to the Hungarian tax authority (called NAV) to obtain your tax number and form NYT53 to the National Insurance Fund (called OEP), the process takes 30 days. As soon as these numbers are available, you will be able to register your own private enterprise through the Hungarian gateway.

Required data for registration:

• name
• address
• the location of your private enterprise
• mother’s name
• citizenship
• date of birth, place, country
• entrepreneurial activity (KVED code)
• type of taxation (simplified taxation, taxed/taxed by value added tax, etc.)
• tax number as a private person
• social security number as a private individual

Advantages of operating as a private entrepreneur:

• there is no down payment requirement
• there is no restriction regarding citizenship or any other requirements
• quick registration and liquidation

Disadvantages of doing business as a private entrepreneur:

•  if you are not an EU citizen, you must have a residence permit under the following circumstances (family reunification, useful activity in Hungary or study)
•  independent responsibility of one person

It is possible to fill out and submit documents online

If you do not want to do business as a private entrepreneur, you can do business in other forms:

Limited liability company (KFT) – there are no requirements regarding the number of founders, there are no requirements regarding the citizenship of the founders, so the company can be fully owned by foreigners. The requirements for the size of the authorized capital are HUF 3,000,000 (EUR 7,333). If there is more than one founder, the authorized capital can be contributed in parts.

The company is limited by shares (RT) – foreigners can purchase a bearer share as well as a registered share. Preference shares are limited to 50% of the registered capital, and interest shares are limited to a maximum of 10% of the registered capital. The share capital requirements are HUF 5,000,000 (12,221.00) for private limited liability companies and HUF 65,000,000 (158,872.98) for joint-stock companies, which can be paid in cash or in kind.

What are the stages of company registration in Hungary?

1. Choosing an organizational and legal form (we recommend LLC)
2. Preparation of founding documents (statutes, founding agreement, decision)
3. Certification of documents
4. Open a bank account
5. Contribute all or part of the authorized capital
6. Create the company’s legal address
7. Submission of documents to the registration chamber
8. Provision of a temporary certificate and an extract from the register, you can already start activity
9. After two months, a permanent certificate is issued
10. Registration as a VAT payer in the state tax service

Is it possible to register a company online?

Online registration is possible by filling out an electronic application, as a result of which an electronic certificate with a registration number and an extract from the register of legal entities is provided. But this document is temporary, permanent is provided after two months

What is the cost of registering a company in Hungary?

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