If a foreign company wants to open a business in Hungary, it can choose between several forms of business. The most common form is a one-person limited liability company. A foreign company can establish a commercial representative office in Hungary, register a branch or set up a one-person private limited company.
Documents required to start a business
Required for the establishment in Hungarian an subsidiary in form of limited liability company of a parent company:
- founder/parent company’s certificate of incorporation
- founder/ parent company company’s articles of association
- founder/ parent company tax number, registration number
- address specimen of the signatures of the representative of the founder/parent company
- decision by the founder/ parent company to establish a subsidiary in Hungary
- birth certificate, passport containing personal data of the representative of the Hungarian company and korean tax number
- payment of minimum registered capital of HUF 3 million or EUR 8.000,
- lease contract for the company’s registered office
- contract with a delivery agent for the parent company
- contract with a delivery agent for the managing director if he has no permanent residence in Hungary
Steps to start a business
The process of starting a business consists of several steps. It is necessary for the client to develop a business plan for the company formation. The foreign documents required for the incorporation of the company must be obtained and translated into a certified translation. During the incorporation process, the identity of the founder must be clarified and the necessary identifications must be made. If the founder wishes to set up a one-person company, it will take considerably less time than a joint venture with several partners. The details of the provision of the capital necessary for the operation of the company must also be agreed, the amount of subscribed capital to be provided and how it will be paid to the company within the one-year time limit set by law. The company’s representative will also need to be clarified as to whether they will have sole or joint registration rights.
Adoption of the Statutes
The articles of association of a one-person limited liability company must be signed by the founding owner. The company’s managing director must make several declarations in order to register the company. The company must have a lease agreement for the real estate where it has its registered office. The managing director must declare that he accepts to be the company’s managing director. The managing director must declare the provision of share capital.
Registration with the authorities
In connection with the registration of the company, the tax number of the company is established. However, it is necessary to register certain details of the company with the tax authorities. The managing director of the company must also register his employment status. The company must have an official electronic client portal, for which the managing director must appear in person at the government office.
Accounting task
Along with the registration of the company, the company is obliged to provide information on its employees to the tax authorities. If you start your business and want to invoice, you must register your chosen invoicing software with the tax authorities to meet the conditions for online invoicing. The company must also submit the necessary tax returns to the tax authorities in order to pay the general excise duty.
The company also has to make sure that its official electronic mailbox is checked regularly, every two or three days, as the Hungarian authorities already send their communications to the electronic mailbox.