Description

There are several forms of business that are common in Hungary. Most often, entrepreneurs choose:

• Closed companies with limited liability – it is permissible to trust the management of a single person, open sale of securities is prohibited, half of the capital must be paid at the start of activities, the cost of non-monetary assets must be assessed by a local expert;
• Partnerships with limited liability – there are no requirements for the amount of capital (distributed equally among the participants), there must be at least two founders, the transfer of shares is possible only after the decision of the meeting;
• Partnerships with unlimited liability – capital is distributed among equal founders (there can be two or more of them), there are no restrictions on its size;
• OJSC with limited liability – at the time of opening, a third of the capital must be paid, the number of shareholders is not limited, only individuals can be directors.

Advantages

• Prestigious European jurisdiction;
• One of the lowest income taxes in Europe – 9%;
• The jurisdictions of the company and the bank are the same;
• VAT-number is assigned immediately upon registration of the company;
• Possibility to obtain a residence permit;
• No withholding tax when paying dividends to non-resident legal entities;
• A simple and inexpensive procedure for obtaining permission to conduct activities related to an adult topic.

Taxes

Income tax in Hungary is 9%. Dividends received by a Hungarian company are usually exempt from income tax. VAT – 27%.

Registration conditions

An important difference in Hungary is the impossibility of adding co-founders to an existing company or acquiring a ready-made and operating organization.

The initial share capital is not required.

Services and prices

Registration of a company

The cost of registering a company is 2400 EUR.

It includes:

• Submission of documents for remote registration of a company;
• Payment of mandatory state fees;
• Legal address for one year.
• The price does not include consular legalization of documents or remote identification for signing documents.

Accounting department

Accounting services are charged based on the number of transactions per month. If it does not exceed 25, the cost will be 180 EUR / month. Mandatory reporting is paid separately, its cost is calculated based on the number of transactions and turnover per year. On average, the cost of an annual report is 180 EUR.