Joint venture
Starting a business in Hungary as a foreign citizen fast and easy for some forms of companies. One of the most popular company variety is a limited liability company (Ltd.), the establishment of which only takes a few days, together with the administration of a tax number and a bank account number.
In addition, Hungary is one of the rare exceptions where the European Union tax number (EU tax number) can be applied for at the same time as applying for the tax number or at any time during the operation of the company, without any additional conditions. So immediately after founding the company you have the possibility to build economic relations within the European Union.
Why is attractive to establish a company in Hungary?
- because Hungary is a full member of the European Union, by owning a Hungarian company, your company can enjoy the benefits of being an EU membership as well
- because you can apply for a residence permit as a director or owner of a Hungarian company (presentation of a business plan is required, however, this can also be simplified with real estate investment). After obtaining this, your family members can also apply for a residence permit
- because in the case of some company forms the process of founding is straightforward and quick, even in just a few days your company can be fully set up
- because in the case of an Ltd. the establishing fund is HUF 3,000,000 (less than EUR 10,000), however, the establishing fund does not have to be immediately and fully invested in the company upon founding, but taking legal regulations into account, it can be used immediately for the operation of the company
- because obtaining an EU tax number is simple and quick, unlike in some other countries where different conditions must be met, or the procedure is lengthy
- because there are several forms of taxation to choose from in the case of a joint venture and the corporate tax rate is one of the lowest in Europe, at only 9%, but in some forms of taxation it can also be 0%.
Our colleagues cannot only help you start a company, but since your prospective business will need a bank account – which we will help you open if you require it – , an accountant, as well as a registered office, which can be an address provided by a registered office provider, we can provide a solution for all these obstacles as well.
Contact us to discuss your business start-up needs and our team will provide you with detailed information.
Sole proprietorship
As a foreign national, you cannot only establish a joint venture, but also engage in gainful employment as a sole proprietor.
In most cases, it is necessary to prove some qualification in order to continue that certain activity. If you have this and the recognition of this qualification is automatically valid in Hungary, you can start a self-employed registration. However, if the acceptance of the qualification is not automatic, the certificate of the qualification must be nationalized, after which the replacement of the individual entrepreneur’s license can be started.
In Hungary, sole proprietors can choose between several forms of taxation, which are adapted to the activity performed and the expected income, so in some cases it is more advantageous to start a sole proprietorship than to start a company.
To legally reside in Hungary, you will need a Residence Permit for the Pursuit of Gainful Activity as a third-country national. As an EEA citizen you will need either a registration certificate or a permanent residence card.