Hungary is a low tax and relatively inexpensive jurisdiction for company registration and its further maintenance. Hungary was not included in any of the black (or gray) lists of international organizations, which gives status to the business located on its territory. The reduced tax rate, acceptable tax regime and clear legislation of Hungary create favorable conditions for doing business in this jurisdiction. It is much easier to register a company in Hungary than in other EU countries.
Features of jurisdiction
- Low-tax onshore jurisdiction that allows you to take advantage of the Treaties for the avoidance of double taxation;
- Obtaining a VAT number is not time-consuming and problematic;
- An opportunity to obtain a residence permit for company employees;
- Banking system stability;
- Developed and well-formed infrastructure;
- There is a need to open an account in a local bank to pay for the authorized capital; this requires the director's visit to the bank; a fine is charged for unopened accounts;
- There is a requirement to provide financial statements.
Company registration
The founders of companies in Hungary can be both individuals and legal entities. Practice shows that foreign investors are more interested in limited liability companies or joint stock limited liability companies. Registered companies can engage in any type of legal activity that does not require a license or special permit. Banking, insurance, investment and trust activities are licensed in Hungary.
Company registration procedure
To register a company in Hungary, you must:
- Pass the due diligence procedure ("know your client");
- Provide several options for company names;
- Sign the forms by the director and shareholder with subsequent notarial or consular certification.