Some of the oldest enterprises in the world are located in Hungary, which boasts a friendly business environment. The country was a global leader in the first half of the 20th century, but it lost its competitive edge during communism.
However, it has been trying hard to reclaim its status as an economic powerhouse ever since.
Although starting a business in Hungary is still challenging compared to other European Union nations, especially those in Western Europe, there are many options if you do your research before moving here.
We’ll go through how to get things going in this article—whether you want to buy an existing business or launch one from scratch—as well as the kinds of permits you’ll need before relocating permanently or temporarily for work.
Pick Your Place Wisely
Making a decision about your company’s location is crucial. Your target market, suppliers, and distributors should all be close by, as should the best broadband connection and efficient transportation systems. If your children are still young, it should also be close to a decent school.
Determine Your Company’s Legal Structure
The choice of your organization’s legal structure is the first step in launching a firm. The following are the most typical business structures in Hungary:
- Solo enterprises (such as a sole proprietorship).
- Partnerships (such as limited and general partnerships).
- Companies with limited responsibility, such as a limited liability corporation.
The distinction between these organizations will affect the amount of capital you must set aside for taxes and social security payments, as well as the amount of personal liability you might be exposed to if something goes wrong with your business or its goods or services.
Create A Company
You need to set up your business before you can launch it. This can be accomplished by registering the company name and selecting the appropriate legal structure for your enterprise.
Then, choose a location for your business and get yourself a tax number from the local government office that deals with taxes in Hungary (the Tax Authority).
Register With The Local Government
Registration with the local government is the first step in beginning a business. Since it could take up to 30 days for your registration application to be approved, you should do this as soon as you can.
Once you have registered your company, you will receive an official certificate of incorporation.
The next stage of launching a firm is registering with the NAV, or Hungarian tax authorities. If you open an account or enter into any kind of contractual agreement (like hiring staff), you must do this within 30 days of doing so.
The registration certificate provided by NAV serves as proof that you have the legal authority under Hungarian law to sign contracts and open bank accounts without obtaining another official authorization from regulatory bodies like courts or police departments.
Although the business environment in Hungary is favorable, there are still some steps you must take to be successful.
For foreigners looking to launch a business in Europe, Hungary is a desirable location. Locals seeking to launch their own businesses will find it to be an excellent location as well. There are a few things you should know before starting a business in Hungary if you’re considering it.
You must first register your company with the government. Find a local partner like firmaxhungary.com that can both give you financial assistance to launch your firm and assist you in understanding how Hungarian tax rules operate.
Finally, there are many possibilities available, whether you’re looking for a co-working space in Budapest or elsewhere in Hungary.
It’s crucial to know what form of business would suit your demands the best if you want to launch a venture in Hungary.
There is no one-size-fits-all method for selecting the ideal legal form for your firm, but certain options are preferable to others based on the nature of the venture and the amount of funding needed.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.