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Business Immigration in Hungary

By 10 July 2022October 31st, 20224 Comments

In this article, our colleague from Gurcan Partners Budapest Office, Ms. Cheng Yoke Leng will mention Business Immigration in Hungary with all required steps and process.

Business Immigration in Hungary

The following discussion contains sufficient guidelines and knowledge on immigration for business purposes in Hungary. Our multinational team has expertise in immigration law and are ready to provide you with efficient and quality services.

Also, to ensure that that the procedures tailor-made for you (based on your current circumstances) are simple and cost-effective.

The duration of forming a company in Hungary usually takes around 1-2 weeks.

 

The procedures as summarized in the table below for Business Immigration in Hungary

 

Step-1 :

Enter Hungary with either a tourist/Schengen Visa

We will be able to extend it for you depending on your circumstances (case-by-case basis)

Step 2:

Signing a Power of Attorney (POA) with the attorney (Refer to Step 2 Below)

Step 3:

Finding an office/address (Refer to Step 3 Below)

Step 4:

Overview of setting up a company in Hungary (1-3 days)

4.1 Setting up a Business plan

4.2 Opening Bank account

4.3 Registration of company & obtaining a TAX number

4.4 List of necessary documents required

Step 5: 

Applying for a Permanent Residence Permit after 3 years (Refer to Step 5)

 

Step-1: Residency in Hungary

Today, the only immigration program made available for business investors is by setting up a company as you it allows you to immigrate to Hungary as a board member or a director. Upon setting up the company, you will receive a VAT number where you will be required to file taxes annually.

All small-scale companies in Hungary are charged 9% of corporate taxes.

After successfully forming the company, you will need to go to the Hungarian consulate in your own country to apply for a long-term visa. You will be given a period of 30 days to enter Hungary (C entry visa) and within that period you must collect your “temporary” residence permit in the form of a biometric residence card (2 years and can be extended for another 2 years).

You will then be eligible to apply for a permanent residence permit after consecutively staying in Hungary for 3 years (Along with other requirements).

 

So far we have assisted over 400 companies. Check out our experiences.

 

All details concerning requirements will be further explained in detail below.

Also, we might need:

  1. Copy of your full travel insurance or (after residency is acquired) local state health insurance and
  2. Bank statements to show that you are able to support yourself here prior to the setting up of the company.

To get an offer for Business Immigration in Hungary, please contact us.

 

Gurcan Partners International Law Firm is a corporate member of Foreign Economic Relations Board  (DEIK) and DEIK Hungary Business Council.

Hungary Business CouncilsDeik Member

 

Step-2: Sign Power of Attorney

By signing a power of attorney (POA) with a Hungarian attorney-at-law will be useful in the worst case scenario as such when the request for an extension of visa is unsuccessful and you are required to return to your country. This allows us to handle everything on your behalf, from the start of the process to the end where your company is up and running.

This POA is to be signed by persons who wish to set up the company here. A POA may also be useful if you are busy and do not wish to travel. We will send you the documents and you will need for it to be stamped by the Hungarian consulate in your country and it must be sent back to us by post.

 

Step-3: Official Adress

We are well versed in the area of real estate law and will provide you with sufficient advice on purchasing the most suitable property in Hungary with our parent company Gurcan Consultancy

Our experienced real estate broker will help you to find the best property for your needs.

Additionally, we will assist you in finding and providing you with an official address.

Gurcan Partners also provides a virtual address for your business in case you do not want to rent a physical property at the beginning. To get an offer of our yearly virtual address, please get in touch with us via mail or phone numbers we share below.

 

Gurcan Consultancy provides accounting and virtual office services in Hungary. 

Please Contact Us

@: [email protected]

or Call Us

Hungary Office:

+ 36 1 808 9449 (English)

 

Step-4: Company Formation Steps

4.1. Business Plan

The following requirements must be included in the Business plan:

  1. A commercial license
  2. Documents of incorporation
  3. Business name of the company and the address of its registered offices or of its owners
  4. Documents of incorporation
  5. Business name of the company and the address of its registered offices or of its owners
  6. Location of the company’s activities
  7. Type of activities
  8. Form of incorporation
  9. Approval for foreign workers

The most popular company formation among Non-EU foreign citizens is a limited liability company (Also known as Kft). Kft allows you to;

  • Enjoy Limited liability in Hungary
  • Minimum only 1 shareholder is required
  • No pre-approvals required by authorities to incorporate the company with a single shareholder
  • 100% foreign ownership
  • Minimum the share capital of EUR 1
  • Required to file an annual tax return
  • The client is not required to travel (Except Bank Account Opening)
  • No resident directors needed
  • Minimum of 1 director allowed
  • Both corporate and individual shareholders are allowed
  • No allowance of corporate directors
  • 9% corporate tax (low and affordable)
  • Annual financial statements are required (Gurcan Consultancy provides accounting service)
  • No statutory audit report needed
  • Sale invoices are allowed to be used in Hungary
  • The company is also allowed to sign contracts with Hungarian entities
  • Import and export of goods are permitted
  • Able to rent an office or buy properties in Hungary
  • Also allowed to own equity in other Hungarian companies

 

Please check Frequently Asked Questions about Company Establishment in Hungary.

 

4.2. Opening Bank Account

All Hungarian companies are required to have a Hungarian bank account within 8 days of setting up a company. Thus, the owner of the company must be present while opening a bank account. A POA will not be useful in this regard. Also, a lawyer will be present to assist you with the process.

 

4.3. Company and Tax Registration

You are required to register the company at the Hungarian Court of Registry. The application for registering or amendments of the details must be electronically submitted by legal representation.

The tax number and statistical code will then be obtained by the competent authority through a process known as the “one-stop shop”. The applicant need not be present in person. This is a simplified registration procedure only made available for companies other than public companies limited by shares (PLC-15 working days).

It takes mostly one day.

You are entitled to register with the:

  1. The Hungarian tax authority,
  2. Municipality,
  3. Chamber of commerce and
  4. The Central Administration of National Pension Insurance.

This can be done by a representative of the company.

If there are any employees present, employers are obligated by law to electronically submit data relating to their employees on the Government Portal, no later than the first day of legal insurance relationship before the commencement of employment.

 

4.4. Required Documents

Documents required are as follows:

  1. The instrument of the constitution on a standard form
  2. Declaration to the Tax Authority to get the company a tax number
  3. Authorizations of the legal representative (the council), or the certification of the right for representation
  4. Certificate of payment of administration fees and a fee of disclosure
  5. List of members
  6. Declaration of the CEO not to be subject to forbidding according to Gt. 23.§ Certificate of the payment service provider for depositing the contribution in cash, as indicated in the instrument of constitution or the official declaration of the CEO for giving a free run of the pledged contribution in cash
  7. Declaration of the CEO for giving a free run of contribution in-kind as well as the assessment declaration of the members concerning the contribution in-kind.

This is to be submitted by your representing attorney through the Governmental Portal using a general form. The electronic procedure for company registration will be stamped and signed by the attorney.

 

Step- 5:  Application for Permanent Residence Permit

You will be able to apply for a permanent residence permit if the following requirements are met:

  • Who lawfully resided in the territory of Hungary continuously for at least the preceding 3 years before submitting the application
  • The company is making a profit and that the applicant himself is able to provide sufficient income to support his family.
  • Verifiable income from the business and/or from other sources
  • No criminal record
  • Who has the residence permit or an interim permanent residence permit
  • Comprehensive healthcare insurance or sufficient financial resources for healthcare services

 

During all the process of Business Immigration in Hungary, our international team is ready to help you. You can have a check our professional team from here.

 

Schedule Your Online Meeting Below

Please do not hesitate to contact us for Business Immigration in Hungary. Our professional team is ready to help you. Please find our contact details below.

Please Contact Us

@: [email protected]

or Call Us

Hungary Office:

+ 36 1 808 9449 (English)

 

To read our other articles about Hungary:
  1. Company Taxation in Hungary I ” KATA ” Start-up Friendly Taxation
  2. Company Registration in Hungary I Step by Step
  3. Taxation in Hungary I Taxes – Social Security
  4. 5 Good Reasons to Start Your Business in Hungary
  5. Buying Property in Hungary
  6. Company Formation in Hungary
Check out Gurcan Journal for more articles in 13 languages. Schedule your online meeting below.

 

Gurcan Partners Hungary Office

Address:

Budapest, Westend Business Centre, 7th Floor, Váci út 22-24, 1132

Business Immigration in Hungary

Cheng Yoke Leng LLM

@: [email protected]

Gurcan Partners

 

All rights reserved. All rights of Business Immigration in Hungary article belong to Gürcan Partners. The author has no responsibilities from the information in this article. This article is prepared just to inform.

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4 Comments

  • Pushpender Solanki says:

    Hi I’m Pushpender Solanki and right now I’m doing import export business in India but now I was planning to come to Hungary and start own business in Hungary

  • Adil Hajir says:

    Hello,
    Thanks for assistance,
    Please note that I am 51 years old, married, having 4 children (20, 18, 15 & 12 years old)
    I am Moroccan, living in Casablanca,
    I have experience in international trade so I am Interested in doing business in Hungary and other European countries, especially in import/Export internationally,
    I am also opened to do business locally but I need more time to know the market there,
    As I have seen in your website, you can assist your client to find and develop a business idea and apply for resident permit,
    Please inform me about possibility, especially with COVID situation, the process and total fees.

    Thanking you
    Best regards
    Adil Hajir