“Pest could not have been created by the grace of a ruler like Potsdam or Karlsruhe, but by the energy and natural endowments of its people. It is located in the middle of one of the richest countries in Europe, on the banks of a river that crosses half of Europe,… the city’s climate is prime and it can expand indefinitely in all directions. From all this a bright future of Pest-Buda is foreseen.”
Lord John Paget, 1835.
The lord proved to be not only a great writer, but also an excellent fortune teller, as Budapest is developing at an astonishing rate – in recent years it has become not only a beautiful and romantic city, but also a heart of one of the fastest growing countries in Europe.
Why is Hungary considered one of the most promising countries in Europe? The Hungarian tax system is considered to be one of the most favorable. Compared to other European countries, the corporate tax rate is quite low, which creates a favorable climate for business.
The most popular and recommended form of enterprise in Hungary is Limited Liability Company or “Korlátolt Felelősségű Társaság” (Kft.) in Hungarian.
The main features of an Ltd. in Hungary:
- A resident of any jurisdiction can register a Ltd. in Hungary and become its owner
- The director may be a resident of any jurisdiction, within standard criteria
- Legal Address can only be in Hungary
- The company’s share capital is HUF 3 million (approximately USD 9,000)
Taxation in Hungary:
- Corporate tax in Hungary: 9%.
- Standard Local Business Tax (LBT) rate: 2%.
VAT in Hungary:
Standard VAT rate – 27%
It is important to note that VAT is incurred by a legal entity in 2 main cases:
- Inland transactions between Hungarian companies
- Sale of goods or services to a private individual
Hungarian companies receive a tax number by default during registration, which is a great advantage of this jurisdiction. In most European countries, obtaining a VAT number is a rather lengthy process, which involves fulfilling a number of conditions, while in Hungary there are no special conditions for obtaining it.
Services
Our licensed lawyers provide registration of legal entities of any ownership form and amount of capital.
We make registration both locally and remotely with a visit to the Consulate of Hungary in the country of residence of the Client. Also, in Hungary, we provide a unique opportunity to register via Skype, which will save you time and money on visiting the Consulate!
Company Formation timing:
– local registration – from 1 business day
– remote registration – 10-15 business days.
Using the according license, we provide the option of long-term provision of legal addresses in locations controlled by our group.
We process all incoming correspondence on behalf of your company and send scanned copies with brief translations of the content to your contact’s email address!
You can accept original documents as you visit our local office.
By partnering with market-leading financial and payment institutions, typically ranked top 5 by jurisdiction in their sectors, we will provide a stable infrastructure for your company in terms of execution and receipt of funds.
To determine the options for banking and financial institutions available in a particular jurisdiction, as well as to clarify the costs, timing and necessary preparatory work, contact our banking experts for a free consultation!
With the participation of our qualified, licensed accountants, our specialists propose the most suitable package of services for your needs, focused on the document flow, type of activity, and region of activity of your company.
In addition to providing corporate services, we also offer our Clients the option of obtaining a residence permit / work visa in the jurisdictions we support, providing a stable infrastructure for the personnel component of the Company.
Permit types supported:
– Standard Residence Permit (all categories)
– White Card, typically for IT nomads
– Permanent Residence Permit
– Hungarian Citizenship
For detailed information about the process of obtaining a residence permit / visa in the jurisdiction you are interested in, leave your phone number for a free consultation.