Investment citizenship is on the rise across the globe, as established and aspiring business owners are moving fast to secure their foothold in expanding marketplaces, diversify their talent pool, and grow their business. With many European countries rising to prominence as the tech and business growth centres of the world, Hungarian business immigration is becoming one of the most sought-after destinations in the region.
Here to help you establish a foothold in the EU market and obtain a Hungarian passport that will open the doors to the whole of Europe are the essential things you need to know about opening a company in Hungary.
Why Open a Company in Hungary?
The Hungarian market is on a perpetual economic rise, with the commercial arena blossoming on all fronts and start-ups emerging in greater numbers with each passing year. But if you were to take a step back, and observe the other side of the Hungarian immigration coin, you would also notice numerous other benefits of owning a Hungarian passport and making the country your place of residence as well.
Aside from its extremely favourable 9% corporate tax, Hungary is country with a very high quality of life (and affordable living costs), boasting stellar education, organized infrastructure, excellent healthcare, and more. The country is also virtually crime-free, making it an excellent place to live and work. Combining these residential benefits with numerous business opportunities makes Hungary the country of choice for business leaders.
Starting a Business and the Processing Timeframe
Opening a company in Hungary is easy and straightforward. You will first need to decide on the company name and structure, LLC (“Kft” in Hungarian) being the most popular option. You can have multiple members and directors under your LLC banner, however only one active director (you) can apply for residency without a work permit.
You can also start a business in Hungary without a local partner or director, and the processing time from submission to registration takes no more than 2-3 business days to complete. Once your business has been registered with the governing bodies, you can move on to the next stages.
Perks and Benefits for Business Owners
Before moving on to hiring mandatory staff members, it’s important to know the benefits you can enjoy as a business owner in the Hungarian market. Hungary is a full member of the European Union, and the Hungarian business immigration program not only allows you access to the local market, but it also opens up numerous opportunities for growth and networking in the EU region as well. As a travelling business owner, you are not obligated to live or stay in Hungary year-round.
Aside from its low corporate tax and booming business arena, Hungarian residency also allows you to travel visa-free in the Schengen Zone. After the company has been established, the golden visa program allows you to invite your family members to join you in your new place of residence, and enjoy the same travel and living benefits as well.
Opening a Bank Account
Once you have established a company, you have 8 business days to open at least one business bank account in Hungary. You are required to do this in person, so be sure to set aside at least one business day to spend in the country. The process is also straightforward and efficient, but it would be a wise and prudent idea to do your research beforehand in discovering the best bank options for your business and growth strategy. You can also hire a skilled assistant to accompany you to the bank.
Hiring the Necessary Staff
Your LLC business structure allows you to have multiple directors. These individuals do not have to be Hungarian nationals, however, you would need to hire at least three nationals for every director in your company. Additionally, Hungarian law dictates that every company must have an accountant, even if your company is not active. Having an accountant and a local legal team proficient in Hungarian laws and regulations will help you maintain a smooth trajectory towards success even if you are not physically present in the country.
Hungary is becoming a safe haven for aspiring entrepreneurs as well as business owners looking to expand their reach, move into the EU market, and establish a foothold for their company in the competitive arena. This is why investment residency in Hungary is one of the best ways to pave the road to a successful future in the business world.