Are you contemplating where you should register your company in Europe? – If so, there’s a lot that speaks for Hungary. Company registration Hungary is simple and fast. Its registration and its associated fees are relatively low. Additionally, it is a politically stable country.
Hungary is becoming an increasingly popular option for company incorporation among clients from all over the globe for a number of reasons, some of them outlined below.
Hungary: Lowest corporate tax in Europe
The super-low 9% corporate tax, which is based on your profit can be further reduced by various aspects, including contribution to government-approved projects. This is frequently referred to as the central reason for Hungary being one of the leading choices for attracting foreign investment in Europe, in conjunction with the extensive network of double tax treaties.
Hungary offers stable and efficient banking system
Hungary also offers an outstanding banking infrastructure with several top-tier banks that are comfortable for global businesses.
Hungary legal system is flexible
No local partner required : in Hungary, anyone can register a company irrespective of nationality. While in some European countries a particular percentage of the company must be owned by local legal persons, there is no such rule in Hungary.
Full ownership: Foreigners can own 100% of the shares in a Hungary Limited Liability Company. This is often not possible in other countries, where local ownership or partnership is required.
Have as many shareholders as you want : it is possible to have only one shareholder and one manager in a company, and this individual can be one and the same. So you can set up a company either on your own or together with your business partners.
Immediate EU VAT number : if you open a Hungarian company, you will receive an EU VAT number together with your Hungarian VAT number, which implies you can start global trading as soon as your company is up and running, without any further delay.
Limited Liability: the shareholder/s liabilities to the company only extends to their respective capital contributions. That implies members are never personally liable for the company’s potential liabilities and/or debts.
Fastest company formation in Europe: Hungarian company formation itself takes only a few work days, while in other European countries the procedure might take longer.
The minimum share capital for a Hungarian LLC is currently 3 million Hungarian Forints, which is equivalent to around 10,000 euros. The whole amount does not have to be paid in full at the time of registration, as opposed to specific other jurisdictions where full payment at the time of registration is mandatory. Rather, the requirement is that all payments be made within 2 years of registration.
Hungary economy and business environment
Central location in the EU: Hungary is located in the middle of Europe, and Its geographical location is often an advantage for those doing business with other European or Central European countries, as it is located near several core European markets. Plus, the economic growth shown by the country in recent years is also very attractive for those seeking foreign investment opportunities.
Have as many activities as you desire: if you operate a Hungarian company, you can conduct only activities registered for it in the company registry. You can also select as many activities as you prefer from a unified list of possible activities, and these do not even have to be connected in case your business entails a different range of activities.
Highly educated, multi-lingual local workforce: Hungary is also recognized for having a highly trained, multilingual workforce, earning salaries far lower than in most other EU countries.
Additional factors you should know if company (LLC) incorporation in Hungary interests you
- An LLC must have a distinct company name that does not bear a close similarity to any other Hungarian legal entity’s name. If you register an LLC, the company name always has to end with the abbreviation “Kft.” (short for Korlátolt Felelõsségû Társaság)
- A Limited Liability Company, or LLC, is a practical and popular option for both private and commercial ventures.
- Hungarian LLCs are the most popular business vehicles in Hungary, as their organizational structure is modest and the members’ liability is limited.
- A Hungarian LLC is not required to have a Board of Directors. Rather, all management is performed by one or several managers. It is the duty of the managing directors to keep records of all financial matters and conclusions.
- There is a requirement to file a yearly report about the company’s business activities with the government every year, but an auditor isn’t required by law.
- Establishing a Kft is free of registration fees and publication charges.
In conclusion, if you want to start or move your business to a low-tax but legally and politically stable area within the EU, It is highly recommended to choose Hungary.
Ready to incorporate your company into this stable and politically safe region, let’s go ahead together and contact your Damalion expert now.
