BUSINESS IMMIGRATION IN HUNGARY

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.

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

Also, to ensure 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.

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).

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.

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.

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.

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.

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.

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.

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.

  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.

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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.

Business Immigration in Hungary 

Cheng Yoke Leng LLM

All rights reserved. All rights of the Business Immigration in Hungary article belong to Gurcan Partners International Law Firm. The author has no responsibility for the information in this article. This article is prepared just to inform.

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As Gurcan Partners International Law Firm, we provide services with our office in five EU and five non-EU countries. Please find our articles below.

• Company Taxation in Hungary I ” KATA ” Start-up Friendly Taxation
• Taxation in Hungary I Taxes – Social Security
• Company Registration in Hungary I Step by Step
• Company Formation in Hungary
• Buying Property in Hungary
• Starting a Business in Hungary
• Real Estate Investment in Hungary
• Company Registration in Germany
• Company Registration in the Czech Republic

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