If you want to open a new business in Europe, Hungary is the best choice. The favorable economic environment, and low corporate tax (it is only 9%) provide an excellent business opportunity. The establishment process of a company is very quick, it takes only 4-5 days, and it can be done personally or online. Our Team at ProacTeam is doing its best to make it smooth and easy for our clients.
Why choose Hungary to open a new business?
- Stable economic environment
- Low (9%) corporate income tax
- Highly skilled workforce
- Central location within the European Union (EU VAT registration available)
- Low cost of living
Why choose ProacTeam?
Local business knowledge is priceless in case of company formation and related services, we are working as a one-stop-shop in Hungary with more than 20 years professional experience, so you will find all solutions you need to start and operate your new Hungarian business.
If you choose ProacTeam, the best one-stop-shop in Budapest, Hungary, you will not be disappointed at all, we save time and money for you, proposing reliable solutions for all you need. We provide business services like company formation, virtual offices assistance (registered seat address + mail forwarding services), delivery agent services, and of course accounting and taxation services. All our team members are highly qualified and experienced accountants, business and tax consultants, and fluent English speakers.
We can help with the corporate bank account opening as well for your comfort, we have very good relationship with several Hungarian banks, so we are gladly help you with bank introduction and connection.
At ProacTeam we believe that the relationship between client and accountant is a strong trust, which is based on mutual respect and straightness. Please contact your English speaking Accountant if you need bookkeeping related help.
Please check our prices here: https://www.proacteam.hu/en/prices/
Good to know in general – company formation information
- The registered capital is 3 million HUF (around EUR 8,000), which can be used for the company expenses from the beginning. It is not mandatory to pay fully at the beginning, you have 2 years to provide.
- Legal papers can be signed by you personally in our office, or we can identify you via Skype or any other online channel. Once the signed legal documents are submitted to the Hungarian Registry Court, the process take 4-5 days around.
- You have to have minimum one HUF corporate account at any of Hungarian banks.
- The bank account has to be opened within 8 days of the company formation date.
- Personal presence is required for the bank account opening.
- You have to have a Hungarian accountant from the beginning who is aware of HAS (Hungarian Accounting Standards).
- All initial declarations have to be submitted to the relevant authorities within 15 days (from the company formation date).
- Hungarian seat address is indispensable, so if you do not have your own property for this purpose, virtual office services can be a good solution for your business.
- Hungarian Tax ID number has to be requested in advance for the managing director (it speed up the process).
- The owners and managing directors have to have delivery agent if they do not have permanent address in Hungary.
- At least one of the Managing Director’s must register for “company government portal” or “client gate” (“cégkapu” or “ügyfélkapu” in Hungarian) what allows the company and your Hungarian accountant to submit tax returns and reports electronically to Authorities.
Process of company formation
Once you decided to open a business in Hungary, you can choose a one-stop-shop or you can search for different service providers for the required services.
Our business advisors will help you to choose the name of your Hungarian company, and collect all information needed to prepare the mandatory legal papers. We prepared the legal documents, we will connect you with our English speaker attorney in law, who will do the identification via Skype. Our lawyers are quite flexible, you can make an online appointment with them. Once the signed hard copies arrive to our office, our lawyer countersign the original documents and submit them very quickly electronically to the Hungarian Registry Court. The Registry Court is pretty fast nowadays, they use to be registered a company within 2-3 days, however it depends on the availability of company judge.
The same time we submit legal papers to Hungarian Tax Office as well, where we are obtaining the local tax number and the EU VAT registration number as well for our clients. If you wish to trade in goods, we can help you with obtaining the EORI number for the company.
After company formation – engage your English speaker accountant!
Once your Hungarian company is registered, from the very beginning you will need a qualified and experienced Hungarian accountant who is aware of HAS (Hungarian Accounting Standards) and can navigate you through the bureaucracy of taxation and administration.
All newly formed company has 15 days from the date of formation to complete the initial declaration to Hungarian Tax Authority, Local Municipality, Central Statistical Office, Local Chamber of Commerce…etc.
Please note, that in Hungary all tax returns and reports have to be submitted to the relevant Authorities electronically, so it is very important for the Managing Director to register for “company government portal”. You can do it only in person, so we suggest you complete it the same time when you visit Hungary to open the corporate bank account. Once you have it, your English speaking accountant will link herself/himself to your company via “company government portal” to be able to submit tax returns and other report electronically to the relevant Authorities.
Your English speaking accountant will help you to choose the most suitable online invoicing software and will link it to the Tax Authority on behalf of you. Please note, in Hungary there is an immediate reporting obligation in case of issued invoices, they must be reported immediately to the Hungarian Tax Authority on an automated way, without human intervention. There are some very user friendly invoicing software, which can not only produce invoices in foreign languages, but has an English surface too. Please consult it with your accountant.
Once your company is fully operation and you wish to start a new business activity or you may face with an unknown situation within your Hungarian business, please always consult with your English speaker accountant in advance, she/he can save you a lot of headaches and can keep you away from penalties.
Please check our prices here: https://www.proacteam.hu/en/prices/