|
Service
|
Cost (EUR)
|
|
Total cost of incorporation of a company with one shareholder and the standard articles of association, including a registered address for the first year
|
5 780
|
|
Opening an account with a local bank
|
3 500
|
|
Total:
|
9 280
|
|
Payment of the authorized capital (HUF 3 000 000)
|
~ 7 800
|
The procedure of incorporation of a company in Hungary:
signing of the documents by directors and members:
The original documents are sent to Hungary for subsequent registration.
Documents made not in Hungarian must be provided with a notarized translation into Hungarian (apostille is also subject to translation).
The cost of any necessary translation of documents, notarization, legalization and apostille shall be paid separately.
After the application has been received and processed the Register issues a Resolution of Registration containing the company’s name, address, temporary tax, statistical and registration number (analog of a Certificate of Incorporation).
The Tax Office checks whether an application for company incorporation has been filed with the Register and there are no obstacles to issue a tax number.
Concurrently with the incorporation process the Register registers the company with the Tax Office to pay VAT and profit tax and the Statistical Office online.
within 15 days after the official registration of the company. A Hungarian company must have at least one account in Hungary. It is necessary to state where the funds will come from (individual / legal entity, bank); give full information on the origin of the funds; business description, regions, main contracts that explain the receipt of the funds.
The total average period required to incorporate a company in Hungary is 2 weeks.
Upon incorporation the Company`s Court provides the company’s electronic file that includes:
If necessary, an apostilled set of documents with an English translation may be prepared (from three workdays). Apostille, notarization or another certification is not required to open an account with a local bank.
An individual as well as a legal entity may be a director; the minimum number of directors is 1. There are no requirements regarding directors’ residency, but it is recommended to appoint a local director. Information on directors is publicly available.
The minimum number of members / shareholders in a company is 1; individuals and legal entities are allowed; there are no requirements regarding residency.
The minimum amount of the authorized capital is HUF 3 000 000 (~ EUR 7 800); it must be paid once the company’s bank account is open.
In case the founders make such a resolution, members may pay 50% of their contribution before the company’s incorporation. Until the full payment of the authorized capital, the company has no right to distribute dividends, and a member whose share has not been fully paid has no right to dispose of it. It is however technically difficult to make payment before the company’s account is open, therefore, we recommend executing payment by transfer to the bank account. The paid authorized capital may be used for the company’s needs as the funds are not frozen in the account.
Each company in Hungary must have a registered office at which there is a sign with the company’s name and the register of shareholders, minutes of meetings, accounts and other documents are kept.
At least one bank account must be opened in Hungary. The number and location of other bank accounts are not limited; however, some transactions must be made through the main account with a Hungarian bank (for example, payment of duties and taxes).
Information on a bank account is publicly available in the Register of Companies; the bank itself sends this information to the tax office.
A Hungarian company must keep accounting records. Financial statements shall be signed by a director and accountant and filed with the tax authority annually. A company in Hungary must be audited if either
Invoices have to be issued in electronic format using programs approved by the tax authorities of Hungary. These programs are linked to the system of the Hungarian tax authority. We provide training how to use such a program.
Hungary offers the lowest profit tax rate in the EU, which is 9%. The rate is unique; it applies irrespective of the amount of profit.
At formation of a company its director forecasts expected profit, based on which quarterly advance payment of the profit tax is made. If no such payments are made, the company will pay a fine, as a result of which the profit tax will be 10% instead of 9%.
50% of royalty income may be deducted from the company’s tax base, resulting in an effective corporate tax rate of 4,5%.
Hungary has a municipal tax, which ranges from 0% to 2% of the profit depending on the place of the company’s business. In Budapest and large cities, the tax is 2%. The tax is paid annually.
By default, companies in Hungary get a VAT number in the course of incorporation, which is a big advantage of this jurisdiction. In most European countries, getting a VAT number is quite a long procedure connected with the fulfilment of a number of conditions whereas in Hungary there are no special conditions of its obtaining.
|
Service
|
Cost (EUR)
|
|
Total cost of incorporation with one shareholder and the standard articles of association (including a registered address for the first year without postal services, preparation and provision of the company’s original founding documents)
|
5 780
|
|
Opening an account with a local bank
|
3 500
|
|
Provision of a registered address (without postal services[2]), from the second year
|
2 200
|
|
Provision of a registered address (with postal services)
|
3 300
|
|
Lease of an office: organization of lease, selection, preparation of a lease contract
|
1 650 + monthly rent (depending on the size and location of the office)
|
|
Services of a local director:
|
|
|
Option 1 • Signing documents (when necessary); • Making payments via online banking (up to 10 payments per year)
|
5 500
|
|
Option 2 • Signing documents (when necessary); • Making payments via online banking (up to 10 payments per month)
|
9 900
|
|
Option 3 • Signing documents (when necessary);
• Available by phone 8 hours per day. Present in the office upon request; • Sending correspondence to related parties: forwarding email (up to 10-20 emails per month), forwarding mail to a specified address (on occasion), forwarding messages by fax (on occasion); • Invoicing counterparties (up to 5 invoices per month); • Making payments via online banking (up to 15 payments per month): administrative expenses, current expenses, other payments; • Keeping records in the office (invoices, contracts, bank statements, etc. in electronic and physical form) and, probably, cooperation with auditors during the preparation of an annual report. A director can attend negotiations with counterparties (not included in the cost). If a unique director is needed (with no appointments in other companies), it may be agreed separately as part of Option 3 |
17 600
|
|
Preparation and filing of accounts
|
from 820
|
|
Compliance fee.
Paid in case of: - incorporation of a company, - company’s renewal, - company’s liquidation, - transfer to another agent, - issue of a power of attorney for a new attorney, - change of director / shareholder / beneficiary, except for a change to a nominee director / shareholder, - signing of documents. |
350 (standard fee – includes check of 1 individual)
+ 150 for each additional individual (director, shareholder or beneficiary) or legal entity (director or shareholder) if legal entity is serviced by GSL + 200 for each additional legal entity (director or shareholder) if legal entity is not serviced by GSL 350 (check for High Risk companies, including check of 1 individual) 100 (signing of documents) |
[1] The cost of services is effective as of July 2024
[2] Postal services: receiving and sending correspondence. The cost of dispatches is paid separately.