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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 the required steps and processes.

The following discussion contains sufficient guidelines and knowledge on immigration for business purposes in Hungary. Our international 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.

 

Step 1. Residency in Hungary

Today, the only immigration program made available for business investors is by setting up a company as 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.

 

Step 2. Sign Power Of Attorney

By signing a power of attorney (POA) with a Hungarian attorney-at-law, you can safeguard your interests in the context of Business Immigration in Hungary. This legal document proves especially useful in the worst-case scenario, such as when the request for an extension of a visa is unsuccessful, and you are required to return to your country. This enables us to handle everything on your behalf, guiding you through the Business Immigration in Hungary process from start to finish, ensuring your company is up and running.

This POA is to be signed by persons who wish to set up the company here as part of Business Immigration in Hungary. Additionally, a POA may also be useful if you are busy and do not wish to travel. We will send you the necessary documents, and you will need to have them stamped by the Hungarian consulate in your country. The stamped documents must then be sent back to us by post to continue facilitating your Business Immigration in Hungary journey.

Our dedicated team is here to guide you through every step of the Business Immigration in Hungary. Gurcan Consultancy provides comprehensive consultation services. For expert assistance with your process, feel free to reach out to us anytime at: info [@] gurcanpartners.com

 

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, specializing in Business Immigration in Hungary.

Our experienced real estate broker, knowledgeable in Business Immigration in Hungary, 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 of your Business Immigration in Hungary journey. To get an offer of our yearly virtual address, please get in touch with us.

 

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

 

 

4.2. Opening Bank Account

All Hungarian companies engaging in Business Immigration in Hungary 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 as part of the Business Immigration in Hungary process. A POA will not be useful in this regard. Also, a lawyer specializing in Business Immigration in Hungary 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.

Our team is here to guide you through every step of the taxation process for businesses in Hungary. Gurcan Consultancy provides comprehensive consultation services. For expert assistance with your process, feel free to reach out to us anytime at: info [@] gurcanpartners.com

 

4.4. Required Documents for Business Immigration in Hungary

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 a Permanent Residence Permit under Business Immigration in Hungary

 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

Take a look at the Schengen Calculator by VisaGuide.World, an invaluable resource for anyone navigating the intricacies of Schengen visas. Whether you’re a seasoned traveler or a first-time applicant, this tool proves to be an essential companion in simplifying the often complex procedures associated with Schengen visa processing. Explore its utility and user-friendly features at https://visaguide.world/europe/schengen-visa/schengen-calculator/, and empower yourself with a streamlined approach to managing your Schengen visa requirements.

 

Explore our additional articles on Hungary:
14 Steps of Company Formation in Hungary by Foreigners
Company Registration Steps In Hungary
Buying Property In Hungary
Company Taxation In Hungary, “KATA” Start-Up Friendly Taxation
Taxation In Hungary, Taxes, Social Security
Company Setup In Hungary, 5 Good Reasons To Start

 

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