• Choose Legal Form: A limited liability company (Kft) or a joint-stock company (Zrt)

• Prepare the Necessary Documentation

• Submit to Authorities: To the Company Court Registry Office (Cégközlöny Iroda) or the relevant district court, The court will issue a registration number and entry in the Companies Register (Cégnyilvántartás)

• Tax and Social Security Registration: Obtain a tax number (Adószám) from the National Tax and Customs Administration (NAV)

• Await Approval: Usually takes 1-2 weeks.

• Articles of Association (Társasági Szerződés): A legal document outlining the company's general information. This document is called Deed of Foundation (Alapító Okirat) if the company has only one member
  

• Syndicate Agreement ( Szindikátusi Szerződés ): A contract signed by the shareholders, specifying their rights and obligations, as well as the rules governing the company's operations
  

• Proof of Identity: Copies of passports or national identity cards for all shareholders and directors
  

• Registered Address: Documentation confirming the company's registered address
  

• Payment of Registration Fee

• Company Documents: The parent company's general information and the official Hungarian translation
  

• Authorization Documents: A formal authorization letter, empowering a representative or agent to register the subsidiary in Hungary and sign related documents on behalf of the parent company
  

• Proof of the parent company Address
  

• Identification Documents: Copies of passports or national identity cards for key shareholders and directors of the parent company
  

• Business Plan for the subsidiary.

• Registration with the competent chamber of commerce and industry
  

• Notifications to the Central Statistical Office (KSH) and the Hungarian Tax Authority (the registration concerning the local business tax at the local government is started automatically based on a notification of the tax authority);
  

• Company Portal (“cégkapu”) subscription;
  

• Selection of an appropriate invoicing and/or accounting program or obtaining a stamp.

• Corporate Tax Rates: A standard rate of 9% on corporate profits up to a certain threshold
  

• Incentives for Foreign Investors: Include tax credits, grants, subsidies, and exemptions for specific industries or regions
  

• Double Taxation Treaties
  

• Value Added Tax (VAT): Applies to most goods and services. The standard VAT rate is 27%, with reduced rates of 5% and 18% for certain goods and services

• Legal requirements Company Formation
  

• Taxation: Hungarian tax laws dictate obligations such as corporate tax payments, VAT reporting, and payroll taxes
  

• Employment Laws: Hungarian labor laws govern aspects like minimum wage, working hours, employment contracts, and employee benefits
  

• Accounting Standards: Hungarian companies must maintain accurate financial records and adhere to accounting standards set by the Hungarian Accounting Act. Regular financial reporting and auditing may be required.
  

• Business Licenses and Permits: Certain industries or business activities may require specific licenses or permits from regulatory authorities
  

• Data Protection: Compliance with data protection laws, such as the General Data Protection Regulation (GDPR) of the European Union

It is essential to highlight the distinction between the two types of minimum wage in Hungary. The minimum wage applies when the position does not require a high school diploma or any higher qualification. The guaranteed minimum salary applies when the position requires at least a high school diploma.

The two main types of companies in Hungary are the following: (i) limited liability company (Kft.) and (ii) private company limited by shares (Zrt.).

The government fee for the registration of a company may depend of the company type. The establishment of a Kft. is free of charge. The minimum capital requirement for company registration in Hungary is 3 million (3,000,000 H)UF, which is approximately 7,700 euros.

Choose a Bank: OTP Bank, K&H Bank, Erste Bank, Raiffeisen Bank,UniCredit Bank,Bank of China

Gather Required Documents: registration certificate, articles of association, identification documents for authorized signatories, and proof of address, company shareholders, directors, and the nature of its business activities.

Book and Attend the Appointment: Visit the bank in person.

Await Approval: This may take several days to weeks, depending on the bank's procedures.

Business Visa: This visa is suitable for individuals traveling to Hungary for business purposes (as owners or directors of companies).

Work Visa: Issued to individuals planning to work for a Hungarian company.

Investor Visa: Designed for foreign investors intending to invest a significant amount of capital in a Hungarian residential real este, real estate funds , or public purpose foundations.

Research Online Listings: Websites such as ingatlan.com, officefinder.hu, and property.hu OR Contact Real Estate Agents

Provide company documents: as part of the leasing process

Negotiate lease terms: including rental rates, duration, and maintenance responsibilities.

Conduct Due Diligence: including inspections, zoning regulations, building permits, and environmental assessments.

Sign the lease agreement: pay the required deposit and rent, and set up utilities before moving in.

In Hungary flat rate personal income tax applies: 15%. The following contributions are generally payable: The employee will pay 18.5% of the social security contribution .The employer will pay an additional 13 % of the social security contribution

The total tax burden (tax + contribution) in case of normal salary is 33.5%, so the general level of net salary is 66.5% of gross salary. The net to total company cost ratio is 58.8%.

Passive incomes (such as dividends or capital gains) and the benefits in kind for employees become subject to 13% contribution, too. However, in case of capital incomes, there is an upper limit of tax liability, hence, social contribution tax is only payable until the natural person’s income (both from non-independent and independent work and capital gains) reaches twenty-four times the mandatory minimum wage.

Hungarian is the country's only official language. English is spoken by more and more people, especially in Budapest. Around 25% of the population speaks English while 10% know German. For a comfortable life in the country, it is best to learn the language at a basic level.

No, company directors are not even required to be residents or citizens of Hungary and therefore, do not have to live there full-time, even if they have a residence status. The residency requirements for company directors in Hungary typically focus more on the director's involvement in the company's operations and management rather than physical presence in the country.

The maximum regional aid intensity in Hungary varies between 20% and 50% (which might be increased further in the case of SMEs).

Central Hungary (excluding Budapest) is expected to be eligible for up to 50% regional aid intensity. Central Transdanubia (max. 30% aid intensity ) and in Western Transdanubia (max. 30% aid intensity).

In the case of large investments with over EUR 50 million eligible costs, the intensity rate is adjusted for the portion of costs exceeding EUR 50 million, based on EU rules.

Moreover, in the counties eligible for Just Transition Fund (Borsod-Abaúj-Zemplén, Heves and Baranya counties), the maximum state intensity can be increased if the EU Commission approves such status of these counties.

The company gate (or “Cégkapu” in Hungarian) is a web portal where you can access official mail the various Hungarian authorities send to your company. All companies are obliged to register.

Logically, the person registering the company at the company gate should be one of the following persons: the managing director, the owner,the company’s lawyer, or the company’s accountant.

Yes, in Hungary, all companies must submit regular accounting reports (in Hungarian) from the date of their incorporation.

fiscal year closing / annual reports due: May 31st for the previous fiscal year

VAT declarations and payments: on the 20th of each month, for the preceding month or quarter (depending on how often the company declares VAT)

payroll taxes & social contributions: on the 12th of each month, for the preceding month

corporate tax advances: paid quarterly on the 20th of July, October, January and April, in 4 equal installments, calculated on the basis of the previous closed fiscal year

local business tax advance: paid twice a year (15th March and September)

To register a company in Hungary, you do not need to present a business plan for the registration itself, however a business plan including market analysis, business objectives, budget, and forecasts is always useful. Furthermore, in order to receive a residence permit for the owner or the director of a company , a business plan which may include the following will be highly recommended:

the company is viable and its plans are realistic

the director (i.e. the applicant) is capable of running the company successfully

the director’s full-time presence in Hungary is required for the company’s operations(Not necessary to do it, but we recommend you to write this).

the company will produce enough profit to support its own operations as well as the livelihood of the applicant and the dependents of the applicant.

The cost of living in Hungary is generally considered low by European standards. A single person living with the cheapest options, might need around 160.000-200.000 Ft/month (416-520 EUR) for living.

Renting a room / an apartment; Cost can be very different depending on living in or outside of the capital, HUF 70,000–180,000 or HUF 120,000–220,000 in Budapest a month plus overheads and utility bills. The landlords usually require you to pay a deposit in advance, which usually equals a minimum of 2 months’ rental fee (this will be paid back when you move out.)

Forint (HUF) has been the local currency in Hungary. Banknotes come in denominations of 500, 1000, 2000, 5000, 10,000 and 20,000. Six different coins are in use: 5, 10, 20, 50, 100 and 200 forint coins.

You can also open a bank account as the non-residential account service is designed especially for foreign nationals. All you need is your passport. You can open a HUF account or any other currency account.

As a Chinese citizen, you must obtain permission for real estate purchase at the Government Office of the county the property is located. The permission is obtained by the lawyer who accompanies the deal. The procedure - including obtaining the permission and the normal registration procedure at the land registry takes up to 4-5 weeks.

Foreigners must fully compensate for property purchase, ownership, and maintenance expenses. Buyers pay the title transfer stamp duty - general rate is 4% of the purchase price - , owners pay utility charges and the annual real estate tax, and sellers have to pay the capital gains tax.

The annual property tax maximum rate is about 3% of the property's cadastral value, or about € 1 per ㎡ a year.

Monthly utility costs depend on the property area, the energy efficiency class of the building, and the water and electricity consumption. On average, owners of 85 ㎡apartments pay €100-230

Property insurance in Hungary is optional. Only properties purchased with a mortgage are subject to obligatory insurance.

When selling real estate in Hungary, the owner has to pay a capital gains tax. The tax rate is 15% of the difference between the selling price and the property purchase expenses.The longer the owner holds the property, the lower the tax rate upon selling. The capital gains tax is not paid if the property possession time is at least 5 years.

Automotive Manufacturing: Hungary is a key player in the European automotive industry, with major manufacturers like Audi, Mercedes-Benz, and BMW operating in the country.

Electronics: Hungary has a strong electronics industry, particularly in the production of consumer electronics, telecommunications equipment, and electronic components.

Pharmaceuticals: The pharmaceutical industry is a significant contributor to Hungary's economy, with several multinational pharmaceutical companies having manufacturing facilities in the country.

Information Technology: Hungary has a growing IT sector, with a focus on software development, IT services, and innovation hubs.

Agriculture: Agriculture remains an important sector in Hungary, with a diverse range of agricultural products including cereals, fruits, vegetables, and livestock.

HIPA, the Hungarian Investment Promotion Agency, is a government-backed organization dedicated to assisting foreign investors interested in doing business in Hungary. It.dedicated to attracting foreign direct investment (FDI) and promoting Hungary as an ideal investment destination.

HIPA serves as a one-stop resource for foreign investors, navigate the investment process, and maximize their success in Hungary's dynamic business environment.

Hungarian National Tradehouse (HNTH): Provides information and support for international trade and investment opportunities in Hungary.

National Office for Research, Development and Innovation (NKFIH): Offers resources and funding opportunities for research, development, and innovation projects.

Hungarian Chamber of Commerce and Industry (MKIK): Provides business advisory services, networking opportunities, and support for foreign investors.

Hungarian Tax and Customs Administration (NAV): Offers guidance on tax regulations, customs duties, and other financial matters related to business operations in Hungary.

Hungarian National Bank (MNB): Oversees monetary policy and provides financial stability and regulatory support for businesses.

National Health Insurance Fund (NHIF): everyone legally working in Hungary must contribute to NHIF to receive basic healthcare coverage(TAJ card)

Private insurance companies:You can choose to purchase private health insurance for more comprehensive medical coverage.

Employer-provided health insurance: If you are employed in Hungary, your employer may offer health insurance as part of employee benefits.