Non-residents are allowed to set up a company in Hungary. The whole process takes is short and only takes 2 – 7 days.
To set up a company in Hungary it is obligatory to use a service of a lawyer. That is because only lawyers are authorized to do set up a company. Usually only one meeting with lawyer is sufficient. He gives the client all the important information and helps him to sign the necessary documents.
The most popular kind of company is KFT. That is because its partners are not responsible for company´s debts.
Below we provide information useful for everyone who intends to set up a company in Hungary.
All the partners must sign Memorandum of association. Memorandum is an essential document determining right and duties of the company´s partners.
Partners of the company must be identified clearly. Both legal and natural persons can become a partner in Hungary. It is noticeable, that there is a difference in taxation.
This is how tax rates are in Hungary
Executive directors must be identified also. Residents of EU – states are allowed to become executive director with no restrictions. Persons, who are not EU residents need residence permit to become an executive director.
To carry out business, company must acquire a trade license. There are two types of licenses
Unqualified trade licenses are accessible for everyone irrespective of their education
Professional trade licenses are only granted for companies, whose partners, executive directors or employees have a required education or qualification
Company must prove its right to use a property as a registered seat. Therefore company must submit a title of ownership of the company (title deed), a lease contract or just an informal approval of the owner.
Company must have a stock capital in the amount of at least 3 million HUF (9700 eur). It is not needed to pay it on a separate bank account; declaration on oath is sufficient.
VAT registration is obligatory only if the company´s turnover is more than 6 million HUF (about 19 500 eur). VAT tax rate is 27 %.
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Optional company formation services in Hungary:
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