As a rule, a Hungarian company is ready in 3 (three) working days, including the EU tax identification number (VAT ID Nr.). Our clients have the opportunity to sign the company formation documents both in Budapest and in Debrecen.
Costs of the Hungarian Company Formation
EUR 2,500-, including 1 year company headquarters, takes up to 10 business days.
Are you planning to set up a limited liability company in Hungary, but you do not know how to proceed? Contact us with confidence and we will free you from the worries of founding a company in Hungary!
Profit tax 9%, dividends 15%, VAT 27%, local tax in Budapest and Debrecen 2%.
Hungarian Company SetUp
LLC Registration in Budapest
1. Identity card or passport copy
2. Mother’s maiden name (before the marriage)
3. Activity of the company
4. Several desired company names
The Registration procedure of a Hungarian company
Company formation in Hungary
Our clients are requested to visit our law firm in Budapest or Debrecen in order to sign the documents. This should take a maximum of 2 hours. Afterwards, our lawyer electronically transmits the signed documents to the Companies` Register. Here, the registration procedures require only 2 to 3 working days. 90% of the company founding cases are represented by the limited liability company and are carried out in 3 working days. However, the founding of the company in Budapest, Hungary can take up to 2 or 3 weeks. The trade license will be sent to our lawyer electronically, whereas the assigned tax adviser will immediately submit the application to the tax office for the attainment of the VAT registration confirmation and the application for the obtaining of the EU tax number.
The tax office grants the applying company the EU tax number within a maximum of 15 days, yet companies usually receive their intra – Community tax numbers (VAT Nr.) within 1 to 2 days. Our customers will go to Hungary once again in order to open a bank account. This can be done on the basis of already compiled company documents. In case our customers opt to open the company account personally, they should call our central law office in Budapest, where they have registered their company, so that they receive the trade license electronically. This is essential for the opening of the bank account. An important aspect is the fact that the managing director is obliged to employ himself within his Hungarian company, in case he is not already employed with an 8-hour work programme. Should he be employed by any other company in any EU member state, such proof should be sought from the relevant company, which then should be provided in the form of a scanned copy to the tax consultancy. This is the only case the managing director is exempted from the obligation to hire himself as part of his Hungarian company.
In Hungary a limited liability company can be established with a minimum capital of HUF 500,000, i.e. approximately EUR 1,800 (as of March 2014 the share capital in Hungary has been raised to EUR 10,000). However, this amount will not be required to be transferred to an account or in case no amount will be deposited during company registration, a simple declaration made in our law firm regarding the existence of the entire share capital would only be required.
We also assist our clients in establishing trading companies in other EU states, such as:
IMPORTANT: For the processing times we have specified such intervals that in most cases correspond to reality. 90% of the cases one should count on the given throughput times. The same applies to the case of the company – purchase procedure. In some cases the companies´ court or the local tax authorities may exceed this deadline. The lead times given above are only relative and only apply on average on the different cases!