Setting up a Hungarian company

There are some consisting advantages in setting up a company in Hungary. Hungary has a stable economy and low taxes. Also a big advantage consists in the short period of time needed to set up a Hungarian company.

Preliminary activities before registering Limited liability (LLC) and joint stock companies (JSC) in Hungary
Every company in Hungary must function on the basis of a company contract, or Articles of Association. It must contain a series of information as well as copies of documents. First of all the founders must establish the denomination of the company, which must express real activity object and the legal form of the company. The foundation act must also contain the company's main location, the company's object of activity, the subscribed capital (the patrimony attribution of the partners) of the future Hungarian company and identification information of the members, name, residence, signature specimen, amongst other information. After establishing the Articles of Association, companies must open a bank account in which the financial contributions must be held. This information must be provided in both Hungarian LLC and Hungarian JSC cases.

Registration in the Hungarian Trade Registry
Every company that whishes to undertake business activities, must be registered into the company register kept at the competent county court or the metropolitan court - as the Court of Registration - depending on where the company has its registered seat.  For Hungarian LLC and JSC, the application must contain a commercial license of the company, the documents of incorporation, the unique chosen business name of the company and the address of the registered office or offices, the types of activities and the form of incorporation of the company. The receipt from the bank designated for the companies bank account, should also submitted with the application.
The simplified registration process offers another advantage. The court registers companies with State Tax Authority (for Vat and income taxes) and with the Statistical Office through an online system, simultaneously with the registration process at the Hungarian Trade Registry.

Registering for Social Security in Hungary
Hungarian LLC and JSC companies must register for Social Security after obtaining the Trade Registry certificate, submitting an application form. The procedure is simple and takes 1 day to complete.

Incorporating a Hungarian company from abroad Hungarian law permits setting a company by foreign investors, on its territory, providing that an attorney assigned by the managing board to represent the company, completes the necessary steps of registration. Also, for the registration process the company's documents must have authenticated translations in Hungarian language.

How long does it take to found a Hungarian company?
The biggest advantage in forming a company in Hungary represents the short period of time necessary for registration. The whole process takes 5 to 7 days to complete.