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For Hungary, 2017 has become the leading growth rate in the last 10 years: GDP growth was 17.92%. Since the 2008 crisis, this is the highest GDP that has been achieved through the development of agriculture, industry and the automotive sector. Germany, the Netherlands, the United Kingdom, the USA and Singapore are investing in the largest sectors of the economy of the republic through a cheap system of remuneration and a high level of natural resources. However, today the country is still open to the international market and can offer many advantages.
What you need to know about jurisdiction to open a business in Hungary
- Jurisdiction offers a wide range of types of company registrations: closed company or limited liability partnership, opening a company or limited liability partnership, which bear its advantages and benefits for the business.
- The state allows obtaining the status of tax resident and VAT-number.
- In the country of registration is available to open an account for the company or backdoor, all proceeds to which are strictly confidential and are not taxed.
- There is no currency control in all jurisdictions for all types of transactions.
- The country has signed 83 treaties on avoidance of double taxation, including the former CIS countries.
- A resident tax system is in force in Hungary:
- Corporate tax – 9-19%;
- VAT: basic – 27%, for the service sector and for the product branch – 25%, for the minimum consumer package of food – 18%, for pharmaceutical products and printing – 5%;
- Capital gains tax, at the source – 0%;
- Income tax for individuals – 16%;
- Duty – 3 000 Hungarian forint;
- Stamp duty – 0%.
- All firms in the country are obliged to conduct financial statements, but filing a tax return, certified by the auditor, is required only if the annual turnover of the company over the last two years exceeded €1 million.
Registration of the company in Hungary: regulation of jurisdiction
Staffing structure of the company
To open a company in Hungary, it will require at least one shareholder and director, where at least one of the directors must be a natural person; regardless of residency, (shareholders can have any form of management, regardless of Residency). A closed company and limited liability partnership requires the presence of a supervisory board. In an open joint – stock company and a partnership with unlimited liability General Partners carry out all management according to the Foundation agreement.
For the closed company and limited liability partnership the amount of the authorized fund is 50 mln and 20 mln Hungarian forint respectively. In the open joint – stock company and partnership with unlimited liability, the minimum amount of the authorized capital is not regulated. Where the paid part of the declared capital at the moment of registration should be not less than 30%, and the rest should be made not later than in a year. Hungarian firms do not issue shares, instead of them, shareholders own certificates of participation, where each indicates the share of the shareholder from the amount of capital.
The minimum package of documents varies from the type of company being opened.
The cost of company registration in Hungary is from €1500. About the cost of registration of the package of documentation and services of nominal service to learn from our experts!
Open a company in the region with the highest growth rate in the EU in just 2 weeks with the help of experts of the company GBS Agency! Ask questions about your business right now!