Company in Hungary – New perspectives in business
The benefits in setting up a company in Hungary
- Hungary is an EU member state and a Schengen state
- Long-term stability of the political system
- Expanding economy and completion of free market reforms
- Modern infrastructure and a good location in Central Europe
- Prompt incorporation in two workdays
- No residential requirements on management and shareholders
- Low level of statutory capital with no need for paying it up
- The income tax rate is 9%
- Facilitated procedure for getting visa and residence permit.
Opening and keeping other bank accounts in Hungary once the business is established
The overall number of banks and financial institutions in Hungary is more than 70 and one third of them are foreign.
There are no currency control requirements concerning bank accounts opened in local and foreign currencies and belonging to foreign nationals
Type of entity
Limited liability company KFT (KorlátoltFelelősségűTársaság).
The asked price for incorporation of the limited liability company KFT is €.1000 +
List of documents submitted to a client upon company registration
- Deed of foundation
- Certificate of representation
- Agreement for registered office maintenance
Copies in English can be submitted and ordered for extra charge.
Corporate taxation. Tax rates
- 9% income tax
- 0-2% community tax (varies depending on region, 2% community tax in Budapest)
- 0% withholding tax on inbound and outbound dividends
- 27% value added tax (VAT ID number is mandatory)
Accounting, audit and filing requirements
Keeping records is obligatory. Annual financial statements are to be filed online.
Annual tax returns on income and municipal tax are to be filed annually. VAT returns must be submitted monthly.
Audit report is required in case the annual turnover exceeds 300 million HUF (about €.970,000) and/or the number of employees exceeds fifty.
Hungary is Central European country. The government system is a unitary parliamentary republic. The capital and the largest city is Budapest. The official and spoken language is Hungarian. The country’s population is 9,860,485 (2016 estimate). Hungarian Forint (HUF) is the local currency.