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Hungary

Legal form:

LLC, PLC, GmbH

Delivery:

3 weeks

Price: $

2500

Payment methods:

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Hungary

Email

Phone

Listing
Open website
UK comapny formation (1).webp

About

Hungary

Capital
Official languages
Population 
Currency

ISO 4217

Budapest

Hungarian

9,772,756 (as of July 2020)

Hungarian Forint

HUF

FAQ

FAQ for Company Formation in Hungary


Q: What is the minimum share capital required to form a limited liability company (LLC) in Hungary?

A: The minimum share capital required to form an LLC in Hungary is HUF 3 million (approximately EUR 8,400).


Q: How many shareholders are required to form an LLC in Hungary?

A: An LLC in Hungary can be formed with a minimum of one shareholder, who can be a natural person or a legal entity.


Q: How long does it take to register an LLC in Hungary?

A: The registration process for an LLC in Hungary usually takes approximately two weeks, but it can take longer if additional documents or information are required.


Q: What are the steps involved in registering an LLC in Hungary?

A: The steps involved in registering an LLC in Hungary include selecting a company name, drafting and signing the articles of association, opening a bank account, and registering the company with the Hungarian Company Registration Court.


Q: Is it possible to register a company online in Hungary?

A: Yes, it is possible to register a company online in Hungary through the Electronic Company Registration System (EHIF).


Q: What are the tax obligations for a newly formed LLC in Hungary?

A: A newly formed LLC in Hungary is required to register for tax purposes with the Hungarian Tax Authority (NAV) within 15 days of its registration with the Company Registration Court. The company will be subject to corporate income tax, value-added tax (VAT), and social security contributions.


Q: What are the accounting requirements for an LLC in Hungary?

A: An LLC in Hungary is required to keep proper accounting records in accordance with Hungarian accounting standards. The company must also prepare annual financial statements, which must be audited if certain criteria are met.


Q: Is it possible to obtain a residence permit in Hungary through the formation of a company?

A: Yes, it is possible to obtain a residence permit in Hungary through the formation of a company, provided that the company meets certain criteria and the applicant is a shareholder or director of the company. The residence permit application process is handled by the Hungarian Immigration Office.


Q: Are there any restrictions on foreign ownership of companies in Hungary?

A: No, there are no restrictions on foreign ownership of companies in Hungary. Foreign individuals and legal entities can own and operate businesses in Hungary without any restrictions.

Economy

"The economy of Hungary has been steadily improving over the past few years. According to the World Bank, Hungary's GDP grew by 4.1% in 2019, making it one of the fastest growing economies in the European Union. The country's unemployment rate has also been steadily decreasing, dropping from 6.2% in 2018 to 4.7% in 2019. Inflation has also been kept in check, with the average inflation rate in 2019 being 2.7%.

The Hungarian government has implemented a number of reforms to help spur economic growth, including tax cuts, increased investment in infrastructure, and a focus on developing the country's digital economy. These reforms have helped to attract foreign investment, with foreign direct investment reaching a record high of $7.3 billion in 2019.

Overall, the economy of Hungary is in a strong position and is expected to continue to grow in the coming years. With the right policies in place, Hungary could become a major economic powerhouse in the European Union."

Taxation



In Hungary, both corporations and individuals are subject to income tax, social security contributions, and value-added tax (VAT). Here's an overview of the tax system in Hungary:


Corporate taxation:

- Corporate income tax is levied on the profits of companies at a rate of 9% for companies with annual net turnover below HUF 500 million (approximately EUR 1.4 million) and 15% for companies with annual net turnover above that amount.

- Dividend payments made by Hungarian companies to shareholders are subject to a withholding tax of 15%.

- There are also other taxes and fees that companies may be subject to, such as the local business tax, innovation contribution, and solidarity surcharge.


Personal taxation:

- Individuals in Hungary are subject to personal income tax on their worldwide income at progressive rates ranging from 15% to 23%.

- Social security contributions are also deducted from employees' gross salaries at a rate of 18.5% for health insurance and 10% for pension contributions.

- Other taxes that individuals may be subject to include the local residence tax and the public media tax.


Tax payment process and calendar:

- Hungarian taxpayers are required to file their tax returns annually by May 31st of the year following the tax year.

- The tax year in Hungary is the calendar year, from January 1st to December 31st.

- Companies are required to pay corporate income tax in four instalments throughout the year, with the first three instalments due by the 20th day of the fourth, sixth, and ninth months of the tax year, respectively, and the final instalment due by the 20th day of the twelfth month of the tax year.

- Individuals are not required to make advance payments of income tax, but they can choose to do so if they wish to spread out their tax liability throughout the year.

- Late tax payments are subject to penalties and interest charges.

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