If you look around online you’re likely to find that Hungary is one of the top choices for anyone looking to start up a business in Europe. There are several reasons why company formation in Hungary is popular and it’s worth going through these quickly to give you a better idea of why it’s well worth your time:
- It offers a friendly and welcoming culture, as well as being a gateway to the rest of the EU
- Hungary has a developing economy and great infrastructure
- Low registration and upkeep costs make it easier to get started
- Hungary has some of the lowest taxes in the European Union
As you can see from these points alone, forming a company in Hungary can be an excellent choice.
What do you need to get started in Hungary?
Even with the benefits, it’s a good idea to consider that there are a few things that you will need to do when forming a business here.
For example, you’re going to need a Hungarian attorney to represent your company during registration. You have to sign the company’s constitutive document along with several other forms that will need to be countersigned by your lawyer.
Any business needs to have a Hungarian bank account within 8 days of incorporation – so don’t wait too long to get this done.
You will also need to register your company at the Court of Registry, as well as get your tax id number, before registering at the tax authority. Both registrations will often require a lot of paperwork, so be sure to take the time to prepare your application from the bottom up.
The taxes may be lower here, but you’re still going to need to register and get everything done on time if you want to avoid any issues (especially at a time when you’re still setting up your business).
All of these are some of the main, essential parts of the process and having the right documentation and a good lawyer can all be vital to ensure that everything goes smoothly.
General advice for starting up a company
If you’re thinking of beginning the journey of setting up a business in Hungary, you should:
- Make sure that you have all the necessary documentation ready for when it’s needed. Setting up can be a rather quick process and being prepared beforehand can be crucial to success
- Hire an English-speaking Hungarian accountant to assist you with your company’s finances, since they’ll often know more about what you need in terms of taxes and the finer details of any laws in Hungary that you may be unaware of
- Take the time to create a simple and feasible business plan and learn everything you can about your target audience and the market you’re stepping into before diving in