Hungary Company Formation

Hungary is a landlocked country in Central Europe, an EU member and falls within the Schengen zone. The capital is Budapest, a beautiful tourist destination. Hungary’s national currency is the Hungarian forint (HUF). The exchange rate is approximately HUF 300  for a single euro.

Benefits

  •     EU member country
  •     Visa free travel to Schengen and other EU countries
  •     Cheapest Immigration Program in Europe
  •     Affordable, Low cost of living in Hungary

We offer a business immigration program to our clients to move to Hungary. Just form a new company in Hungary and as a business owner, you can move to Hungary with your family. The most popular company form among foreigners is LLC (or Kft in Hungarian). The minimum capital required to form a company is approx EUR 10,000 (HUF 3,000,000).  One of the advantages of incorporating a company in Hungary is that there is no obligation to deposit the share capital in the bank, and 100% of this capital can be spent immediately after incorporation on company-related expenses (e.g. investment, warehouse rental, stocks, market research).

The company formation is very fast and usually takes 1-2 weeks. Hungary is a business friendly country and corporate taxes are 10% for small scale companies. Hungarian companies are automatically given an EU VAT number, and are required to file taxes periodically.

Here is how it works

To start this process:

With the new regulations, you have to come to Hungary in person to form a new company and open a bank account for it . We help you to get a business visa to visit Hungary (by sending you an invitation letter), you come here, form the company, and start your activity. At your first visit, you can stay only for 30 days, after which you return home and apply for a resident permit at the Hungarian embassy in your country. This means you have to visit Hungary only once before you can relocate here.

Please note that EU countries no longer stamp resident permits in passports; instead, biometric cards are given as of March 2012.

This “temporary” residence permit allows you to live, travel, and do business in any sector with partners all over Europe and beyond. You can also buy property with the resident permit card. When you travel, you are free to visit any Schengen countries and spend there up to 90 days in a 6 month period. The resident card is valid for 1 year and after that yearly renewals are done. After 5 years of stay in Hungary, you are eligible to apply for a “Permanent resident card”.

 Business Immigration Package – Fee and Charges

YEAR ONE PACKAGE:

Our package costs EUR 4,990 (+ 27% VAT if applicable). It includes everything necessary for launching your company and applying for residency based on business ownership.

  1. Company incorporation (including all legal fees and  registration taxes; documentation in Hungarian and English; bank account assistance; VAT registration; chamber of commerce registration and membership fee)
  2. Registered office (address and mail handling for the company, for one year)
  3. Business plan writing (compulsory for the residency application to show the viability of the business as well as the applicant’s role in it; our package includes a basic business plan as required for immigration, drafted based on the applicant’s input – please note that in some complex cases preliminary market research may be required, at extra cost)
  4. Residence permit application  (for one person; liaising with the embassy, compiling the applicant’s file for submission and delivering it via courier)
  5. Tax number, registration into the social security system
  6. Invitation letter (if required for the applicant’s visit when opening bank account)
  7. Housing search

The above package covers one director’s residency application and all fees related to setting up and running the company for one year. For additional directors or family members, we offer add-on services (residency application: EUR 600/person; tax number: EUR 100/person; social security number: EUR 100/person; personal assistance: EUR 25-40/hour). If the above package does not cover your requirements fully, we will happily compile a customized quote for you, as we also offer services such as personal assistance, paperwork, work permits, referrals, or anything connected to your relocation.

Other expenses to be expected:

In addition to fees payable to Helpers, please bear in mind that you will incur various expenses while setting up your business and life in Hungary. These are the following:

  • cost of accommodation (rental or purchase)
  • insurance (travel insurance before you get residency and state health insurance after)
  • the investment required for setting up and running your business activity (depending on the activity it may include: office/warehouse rental, licensing fees, salaries, stock, etc.)
  • Accountancy (approx EUR 100 per month)

Once we know more about your plans, we will be happy to estimate these for you.

Residency in Hungary through business ownership – Benefits:

  • quick and easy incorporation process (possible via POA)

  • low corporate tax (10%)

  • EU and Schengen member country

  • available to all nationalities

  • no minimum stay requirement (as a businessman you may travel without limitations)

 

Main requirements:

  • locally registered, fully compliant company with bank account and accountancy

  • at least one short visit to Hungary (for opening a company bank account)

  • solid business plan and actual trading activity (in Hungary or internationally)

  • rented or purchased accommodation

  • full travel insurance or (after residency is acquired) local state health insurance

  • verifiable income from the business and/or from other sources

  • no-criminal-record certificate issued by your local authority (or police)

 

Our Full List of Services in Hungary

1. Company incorporation

2. Housing and Accommodation (required for residency); property management

3. Tax and EU VAT registration

4. Bank account opening (possible only if you are in Hungary)

5. Resident permits/visas for family members

6. Accounting / Reporting to tax authorities

7. Virtual office service and registered company seat

8. Airport welcome service

9. Translation of documents from English to Hungarian or vice versa.

10. Personal assistance.

11. Emergency services.

12. Market research.

13. Business Invitation letters

 

For more information on applicable fees and additional costs, please contact us.