The incorporation process of a Hungarian company is simple and fast if all requirements are met.
Any person - no matter his or her nationality or residence - can be a director or a shareholder in a company in Hungary. Shareholders of a Hungarian company can be natural persons or legal entities; foreign shareholders must appoint a Hungarian delivery agent who will conduct the incorporation process.
The company must have a local registered office and BridgeWest offers this type of service. The minimum share capital for a limited company in Hungary is approximately 2,000 euros (500,000 HUF).
The first step for company incorporation in Hungary is providing a name for the company, the structure and the business activities.
The second step for company incorporation will be to set up a bank account where the share capital will be deposited. The minimum share capital required to open a company in Hungary is 500,000 HUF (approximately 2,000 EUR). All documents for company incorporation must be notarized by a Hungarian public notary. The shareholder/s can also name representatives who will conduct the incorporation process by power of attorney.
After the documents are ready, the company will be submitted with the Hungarian Trade Register for approval. Once the registration is complete, the company will be able to operate.
The incorporation process in Hungary takes between five and seven days.
Bridgewest provides the following services for company incorporation in Hungary
- drawing up the articles of association that can be signed through power of attorney (Hungary laws require powers of attorney for any public notary proceedings);
- drawing up documents for company incorporation in Hungary: specimen signatures, passports copies, application forms required for company registration;
- arranging public notary proceedings (all procedures for company incorporation are done in front of a Hungarian public notary);
- providing a registered office in Hungary on demand; the registered office serves as headquarters for the company in Hungary and it will be made public;
- setting up a bank account for the company in Hungary; BridgeWest will help in setting up the share capital bank account, as well as a current bank account once the company is incorporated.
- recommending a Hungarian accountant, as accounting services are needed for new businesses in Hungary.
The limited liability company in Hungary (Korlátolt Felelosségu Társaság, Kft)
The limited liability company in Hungary must have at least one shareholder and one director. It is required to have a registered office and a minimum share capital of 500,000 HUF (approximately 2,000 EUR).
The joint stock company in Hungary (Részvénytársaság, Rt)
The Hungarian joint stock company must have at least one shareholder, one director and a registered office. The minimum share capital for a Hungarian joint stock company is 5,000,000 HUF (approximately 20,000 EUR).
The Hungarian Limited Partnership (BT, added after the name of the Partnership)
The Hungarian limited partnership requires at least two partners - one is a general partner who will be held fully liable for the company’s debts and obligations and will also have management rights and a limited partner who will be held liable to the extent of his/her contributions. The limited partnership has no legal status, but it can become a limited liability company.
The Hungarian general partnership or unlimited partnership ( KKT, added after the name of the Partnership)
The Hungarian general partnership requires at least two partners and all members are held fully liable for the company’s debts and obligations and have management rights. The general partnership does not require a minimum share capital and has no legal status.
The standard VAT rate in Hungary is 27% for products and services, 18% for certain foodstuff and accommodation and 5% for packaged medicines and printed materials.
The corporate tax in Hungary is set at 19%.
The dividend tax paid by foreign companies in Hungary is 16%, unless tax treaties are enforced.
BridgeWest is also able to offer ready-made Hungarian companies and VAT registration.
Please contact us for more information about how to open a company in Hungary and prices.
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Call us now at +44 203 287 0408 to set up an appointment with our lawyers in Budapest, Hungary. Alternatively you can incorporate your company without traveling to Hungary.
As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Hungary.