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6 Steps of Company Registration In Hungary

In this article, we will mention Company Registration in Hungary and other details such as opening a bank account in Hungary.

Steps Of Company Registration in Hungary

If you considering company registration in Hungary, these are the steps you may want to follow:
1. Consultancy
2. The decision on the legal form, name, address, owners, and CEO of the company
3. Preparing the necessary documents
4. Traveling to Hungary
5. Signing the documents and form your company
6. Opening a domestic bank account

Should you be contemplating the prospect of company registration in Hungary, we have outlined a comprehensive set of steps that you might consider following to facilitate a smooth and successful registration process. These steps are designed to ensure a meticulous approach to the establishment of your business entity in Hungary. If you require further clarification or assistance at any point in these proceedings, you may find an in-depth explanation of each step below. Feel free to reach out to us without hesitation; our team is readily available to provide the guidance and support you need to navigate through the complexities of company registration in Hungary.

 

1. Consultancy

Embarking on the journey of company registration in Hungary necessitates a thorough understanding of local legislation and business opportunities. It is always advisable to meticulously gather information before initiating the process of company registration in Hungary. Key areas such as taxation, accountancy, and civil regulations should be at the forefront of your considerations to ensure a seamless and compliant establishment of your business entity in Hungary.

Navigating the intricacies of company registration in Hungary can be a challenging task, but with the right guidance, the process can be streamlined. Our specialized services are tailored to provide you with comprehensive information presented in a clear and understandable manner, focusing specifically on the intricacies of company registration in Hungary.

Our primary goal is to offer valuable insights into the Hungarian business landscape, addressing the specific requirements associated with company registration. Whether you are a local entrepreneur or an international investor seeking to establish a presence in Hungary, our expertise spans a wide spectrum of topics essential for a successful registration.

By utilizing our online consultancy services, you can engage in productive discussions, seek clarifications, and receive guidance specifically geared towards the nuances of company registration in Hungary. This approach not only facilitates a better understanding of the local business environment but also empowers you to make informed decisions throughout the entire registration process.

To further enhance accessibility, we strongly encourage you to schedule your online meeting below. This personalized approach enables us to address your specific concerns and tailor our guidance to the unique requirements of company registration in Hungary. We recognize the distinct nature of every company, and our aim is to assist you in navigating the intricacies of company registration in Hungary with confidence.

In summary, dedicating time to gather information about local legislation and business possibilities is a crucial first step in the process of company registration in Hungary. Our online consultancy services are specifically designed to simplify this process, providing you with the necessary insights to navigate the regulatory landscape and successfully establish your business. Schedule your online meeting, and let us guide you through the intricacies of company registration in Hungary, ensuring a smooth and compliant entry into the Hungarian business landscape.

Prior to taking any action, we encourage you to reach out to us for a comprehensive discussion on pertinent topics.

 

2. Company Details Decision

When embarking on the journey of company registration in Hungary, one of the pivotal decisions revolves around selecting the legal form, address, name, owners, and general manager for the prospective business. Hungary offers two primary types of legal company forms, each with distinct financial liability implications. Companies with unlimited financial liability, such as business partnerships (Kkt. and Bt.), mean that the owners bear full responsibility for the company’s debts. On the other hand, limited financial liability structures, including Limited company (Ltd.), Private limited company (Zrt.), and Public limited company (Nyrt.), restrict personal responsibility to the registered capital. Each company form has its own set of advantages and disadvantages, making the decision a crucial one in the company registration process.

The uniqueness of the company name is a prerequisite during company registration in Hungary. The selected name should not be already registered and must avoid historical references. While the company name can be in full English, finding an official address can be challenging. However, we offer a solution by providing a trustworthy official seat at competitive prices. For newcomers to Hungary, starting with a limited company (Ltd.) is often recommended due to its structural flexibility, limited responsibility, and relatively affordable maintenance and registration costs.

It’s important to note that the age of 18 is a crucial factor in Hungarian company registration. CEOs must be 18 years or older, but there is flexibility regarding ownership. However, if including individuals under the age of 18, the person in charge (usually a parent) must agree on the child’s ownership. This process can be complex for foreign citizens, leading to the recommendation of excluding persons under the age of 18 from the company structure. Navigating these considerations requires careful attention, and our team is here to assist you throughout the company registration process in Hungary.

 

3. Preparing Documents

Preparing the necessary documents for company registration in Hungary:

You will need the following documents:

1. Passport or any other documents that certify the identity (e.g. EU driving license) of all the owners and general managers
2. Any document that certifies your local address
3. Any document that certifies your personal tax ID number – if any (Hungarian local personal tax number will be obtained by us)
4. The founders’ resolution or article of foundation and the specimen of the signature, if the owner will be another domestic or foreign company or legal person

Please note that official translation may be required for some of the documents.

 

4. Signing The Documents And Forming The Company

After you collected all the required documents and consulted all the necessary topics, we provide you with a booked appointment.

On the given date, you travel to Hungary and do all the paperwork in only 1 day.

Or: you may establish your Hungarian company via authorization (power of attorney).

In the latter case, you do not even need to travel to Hungary. Company registration and bank account opening will be carried out by us without your presence.
Do not hesitate to get in touch with us.

 

What documents will I need to sign during the company registration in Hungary?

1. The article of foundation/incorporation – this is the founding document of your company
2. List of shareholders – the listing of all the owners of the company
3. Managing director declaration on the use of the place for the seat – the CEO must officially certify that the official seat is legally used
4. Managing director declaration on forbiddance – The CEO must declare that he or she is not under the scope of any forbiddance
5. Managing director declaration on delivering a financial contribution to the company – CEO’s certification on the fact that the registered capital is paid to the company by all the owners
6. Managing director declaration on the acceptance of the position and conflicts of interest – The CEO accepts his or her position and declares that he or she is not affected by any obstructions
7. Agreement on the assignment of delivery – for every foreign owner and CEO’s, a local delivery agent should be assigned (this assignment will be undertaken by us), who will receive and forward every mail to the owners
8. Agreement of assignment – an assignment that allows the lawyer to register the company at the court

According to our experience, the Hungarian court will register your company in 2 to 15 days. Then we will send the electronic certificate of incorporation.

Gurcan Consultancy offers a wide range of consulting services to serve as your strategic ally, assisting with everything from corporate accounting to managing your tax filings, all aimed at fostering your business growth.

 

5. Mandatory Registration

After the company is incorporated by the Hungarian court, there are other mandatory registrations to be carried out:

1. Local tax office.
2. The central tax office (NAV).
3. Chamber of Commerce.
4. Statistical Office (KSH).

The obligations listed above will be fulfilled by us. All the documents will be sent to you electronically.

Our dedicated team is here to guide you through every step of the Company Registration in Hungary.

 

6. Opening a Hungarian Bank Account

It is required by law for every domestic company to open a local forint (HUF) bank account. Of course, bank accounts in other currencies (EUR, USD) may be opened also.

Opening a bank account while company registration in Hungary is free of charge, however, maintaining it will cost you a certain sum every month. You do not need to make any deposits in the beginning, however, to keep up your bank account, you may need to transfer some amount to your account regularly.

We recommend OTP Bank, Raiffeisen Bank, Erste Bank, and K&H Bank. We will advise you on which bank would be suitable for your business activity. Do not hesitate to get in touch with us.

Banks typically require company registration before allowing you to open a bank account. If you haven’t completed this process, don’t panic; here’s what you can do:

• Stay 2 additional days and open the bank account personally
• Open a bank account with an attorney

In the former case, we will accompany you and do all the necessary translations. In the latter case, we will open the bank account for you at a discount fee (the actual fee depends on the time we have to spend on the opening which is greatly influenced by the bank itself).

Gurcan Consultancy provides comprehensive consultation services to be your growth partner from corporate accounting to tax returns. Feel free to reach out to us anytime at: info [@] gurcanpartners.com

 

Explore our additional articles about Hungary:
Company Registration Steps In Hungary
Buying Property In Hungary
Company Setup In Hungary, 5 Good Reasons To Start
Company Formation In Hungary
Real Estate Investment In Hungary
Debt Collection In Hungary
Digital Nomad Visa (White Card) In Hungary

 

Feel free to reach out to us through the following contact information:

E-MAIL: info [@] gurcanpartners.com

Gurcan Partners Hungary Office
TELEPHONE: +36 1 808 94 49