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Registration of a company in Hungary
- Price:5000 EUR
- Term:1 month
Hungary is a European jurisdiction that has begun to develop rapidly in recent years. The country reduced its corporate tax from 19% to 9%, which immediately attracted foreign investors. Thanks to a loyal tax burden, Hungary is among the top 10 investment destinations.
Today, the main focus of the jurisdiction is on technology: IT and IP sectors, attracting digital nomads and startups. For this, state programs are regularly developed, grants and benefits are issued.
More classical activities such as international trade, exports and imports will also benefit in terms of taxes, prestige and access to the European market.
- identification of the client according to the KYC procedure
- registration procedures
- payment of the registration fee
- services of a legal address for a year
- preparation of a package of corporate documents under an apostille
- obtaining a VAT number
- one courier delivery
- corporate seal
- legal and tax advice
- opening a bank account in Hungary
- checking the company's compliance with all compliance and KYC criteria
- legal support of the company
- services of a legal address for a year
- legal and tax advice
- 1White and transparent jurisdiction that complies with all KYC, AML requirements
- 2The country has set the lowest corporate tax rate in the EU
- 3Non-residents have access to zero taxes on dividends and capital gains
- 4Ability to have a company and a bank account in the same jurisdiction
- 5A company in Hungary can be opened remotely, but opening a local account will require the personal presence of the director
- 6Obtaining a VAT number for European trade
- 7Hungary does not impose VAT on the export of goods
- 8Possibility of obtaining a residence permit
- 9There are special preferential regimes for intellectual property
The Hungarian tax system has two facets: on the one hand, it is the lowest corporate tax in the EU and no taxation of passive income, and on the other hand, high social contributions (for salaries, pension fund and medical care) and the highest VAT in Europe.
But, a big advantage for technology companies is the preferential IP-Box tax regime in the country. This regime allows IT companies to minimize taxes on income from intellectual property by 50%.
Thus, income from IP is taxed at a rate of 4,5% instead of 9%. Despite the fact that VAT in the jurisdiction is high, each company receives a VAT number without fulfilling any conditions (for example, in other countries there are thresholds for annual turnover for registration as a VAT taxpayer).
- Capital – declared and paid up authorized capital of 3 million HUF. For large companies with a capital of over 50 million HUF, a supervisory board is mandatory.
- Director - can be a company or individual of any residency. A minimum of one director is required.
- Shareholder - can be a company or individual of any residency. Minimum one sharer required.
- Manager – appointment of a local manager is recommended if the director and shareholder are non-residents of Hungary. Requested when opening a corporate account.
- Register of beneficiaries - data on the ultimate owners of the company are kept in a public register.
- Available information - about the name of the company, legal address, amount of authorized capital, director, shareholder and beneficiary.
- Substance requirements - banks may require a physical office in Hungary, a manager or local partners.
- Legal address - a local Hungarian address is required. The rent of the local address is paid from the company's account.
Hungarian companies are subject to the requirement to prepare and file financial statements annually. Moreover, for large companies that for 2 years in a row have a turnover of more than 300 000 000 HUF/year and employ a staff of 50 or more people, they are required to undergo an audit.
Since all registered companies immediately receive a VAT number, this is followed by quarterly/monthly preparation and submission of VAT returns. In individual cases, reports can be submitted annually.
- 3 desired company names
- description of directions of work of the future company
- address of storage of accounting documentation
- national and foreign passports of the shareholder, director of the company
- confirmation of the shareholder's registration address (for example, a utility bill)
- confirmation of the director's registration address (eg utility bill)
- CV resume for director, shareholder
- additional information about the shareholder and director: tax number, contact details