Hungary offers a strategic gateway for foreign businesses looking to expand into Europe. With a favorable economic climate, robust infrastructure, and incentives for investment, establishing an entity in Hungary can be a lucrative move. At BTW Consulting Company, we specialize in guiding companies through this process efficiently, with services designed to get your office up and running within just two months.

Step 1: Decide on the Type of Entity

The first step in establishing a business in Hungary is to decide on the type of entity you want to form. Common options include:

• Limited Liability Company (Kft.): Suitable for small to medium-sized businesses, offering limited liability to its owners.
• Joint Stock Company (Nyrt. & Zrt.): Ideal for larger enterprises, capable of raising capital through public or private stock offerings.
• Branch Office: An extension of a foreign company, not a separate legal entity, which is perfect for companies testing the Hungarian market.
• Commercial Representative Office: Used for non-commercial activities like marketing or research.

Step 2: Registration Process

The registration process involves several key steps:

• Company Name Reservation: Ensure your company name is unique and reserve it.
• Document Preparation: Draft the necessary founding documents, such as articles of association.
• Bank Account Opening: Open a Hungarian bank account and deposit the initial capital.
• Registration with the Court of Registration: Submit all documents for official registration. This step also includes VAT registration.

Step 3: Obtain Necessary Licenses and Permits

Depending on the nature of your business, specific licenses or permits may be required. This could range from trade licenses to environmental permits.

Step 4: Registration for Tax and Social Security

Once your entity is registered, you must register for tax and social security. This includes obtaining a tax identification number and registering with the local tax authority and social security administration.

Step 5: Setting Up Your Office

With the legal formalities out of the way, you can move on to setting up your physical or virtual office in Hungary. BTW Consulting can assist in finding a suitable location, setting up infrastructure, and ensuring compliance with local employment laws.

BTW Support

Establishing a business in Hungary can be streamlined with expert guidance. At BTW Consulting Company, we pride ourselves on enabling businesses to start their Hungarian operations swiftly and smoothly, typically within two months. Contact us today to find out how we can help you expand your business footprint in Europe.

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