Hungarians are famous for their entrepreneurial spirit, and this is also demonstrated by the fact that there are currently over 1 million 700,000 businesses in Hungary.
Speed and simplicity
In Hungary, the establishment of a company, and in particular the establishment of business associations, can take place very flexibly and quickly. It is possible to establish a Ltd. or a Lp in a few days, but you must always use a legal representative in the process.
Basically, the choice of the corporate form – in which lawyers can provide great help – is the first step, which is strongly influenced by the type of business that the company wants to pursue, after which the company can actually be incorporated.
The biggest advantage of starting a company in Hungary is that it is extremely quick to register companies at the Business Register. In practice, the administrative time is 1 working day, therefore the day after the signature, with the certificate issued by the Business Register, you can open the bank account of the company and start the actual activity of the company.
In addition, another advantage is that the Hungarian tax authority automatically generates a European VAT number, so that the company can start its activity within the European Union from the beginning, during which it can operate according to VAT rules.
It is also an advantage that even one person is enough to start a business, since one person can be a member and manager.
The big advantage is that the cost of establishment a company is relatively low, and in some cases completely tax-free, thus helping new businesses enter the market.
There are many places you can read about cheap start-ups, which not only help you start a business, but also provide a location and, in some cases, an accountant.
Hungary as a tax heaven
Although value added tax (VAT) is very high in Hungary at EU level, corporation tax is only 9%, which is considered very low, which can only be an interesting factor for entrepreneurs.
Procedures after establishment
After creating a company, the first thing you need to do is to open a bank account, which is always mandatory, from here you have to fulfill all your official obligations. Choosing the right bank account is very important, as companies can make cash payments with each other only for an amount lower than 1.5 million HUF, above this amount it is necessary to make the payment by bank transfer.