Establishing a Business Presence in Hungary

Guide for Non-Resident Entrepreneurs

Hungary, with its strategic location in Central Europe and business-friendly environment, offers numerous opportunities for non-resident entrepreneurs. This guide provides a detailed roadmap for establishing and maintaining a business presence in Hungary, ensuring compliance with local regulations and maximizing your entrepreneurial potential.

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Step-by-Step Approach for Establishing a Business

Business Structure Selection

Choose between Korlátolt Felelősségű Társaság (Kft.) or Részvénytársaság (Rt.) as the most common entity types
Consider tax implications, liability protection, and minimum capital requirements

Registration Process

Register your company with the Court of Registry (Cégbíróság)
Obtain a Tax Identification Number (Adószám) and Company Registration Number (Cégjegyzékszám)
Timeline: Typically 2-4 weeks
Fees: Approximately €100-€300 for online registration

Tax Registration

Register for VAT (ÁFA) if annual turnover exceeds €48,000
Understand corporate tax rates (9% standard rate)
Register for income tax with the National Tax and Customs Administration (Nemzeti Adó- és Vámhivatal - NAV)

Employment Considerations

Register as an employer with the Hungarian State Treasury (Magyar Államkincstár)
Understand Hungarian labor laws and social security contributions
Consider work permits for non-EU employees

Banking and Finance

Open a Hungarian business bank account
Explore financing options, including government incentives and grants

Ongoing Compliance

File annual accounts and tax returns
Maintain proper bookkeeping records
Stay updated on regulatory changes

Recommended Tools and Services

Court of Registry (Cégbíróság): https://www.e-cegjegyzek.hu/
National Tax and Customs Administration (NAV): https://nav.gov.hu/
Hungarian State Treasury (Magyar Államkincstár): https://www.allamkincstar.gov.hu/
Accounting software: Számlázz.hu, Könyvelő.hu
Legal support: Lakatos, Köves and Partners, Oppenheim
Business incorporation services: Ecovis, Mazars

By following this guide, non-resident entrepreneurs can navigate the process of establishing and operating a business in Hungary with confidence. Remember to consult with local experts for personalized advice tailored to your specific business needs.

Key Requirements for Establishing a
Business in Hungary

Establishing and managing a business in Hungary involves several key steps to ensure compliance with local regulations and efficient operation. Here is a detailed guide to help you navigate the process:

1. Authentication Methods

Obtain Hungarian eID or Client Gate credentials

Essential for accessing government online services
Apply through the appropriate government portals

3. Tax Registration

VAT (ÁFA) Registration with the National Tax and Customs Administration (NAV)

Register if annual turnover exceeds €48,000
Access: https://nav.gov.hu/
Submit the necessary documentation and pay the required fees
VAT returns: monthly, quarterly, or annually (based on turnover)

2. Business Registration

Register with the Company Information and Electronic Company Registration Service (Cégkapu)

Website: https://www.e-cegjegyzek.hu/
Submit required forms and pay the applicable registration fee (around €100-€300)
Obtain a Tax Identification Number (Adószám) and Company Registration Number (Cégjegyzékszám)
Timeline: Typically 2-4 weeks

Register branch office(s) with the local government office (Kormányhivatal)

Submit specific forms and pay any applicable fees
Obtain a unique registration number for each branch

4. Employer Registration and Obligations

Register as an employer with the Hungarian State Treasury (Magyar Államkincstár)

Use the online services to submit the appropriate forms

Fulfill Employer Obligations

File monthly Bevallás (tax return)
Submit monthly Egyéni Vállalkozói Járulék (social security contributions)
Deadlines: 10th day of the following month

By adhering to these key requirements, businesses can ensure compliance with Hungarian regulations and operate smoothly in the Hungarian market. Always consult with local experts or authorities for the most up-to-date information and guidance tailored to your specific business needs.

Procedures and Timelines for Establishing a
Business in Hungary

Registering a Branch Office
Obtaining a Hungarian VAT Number (ÁFA) (2-4 weeks)
Becoming an Employer (2-4 weeks)
Submitting Tax Returns

Obtain Authentication Method (1-2 weeks)
Acquire Hungarian eID or Client Gate credentials
Essential for accessing government online services
Apply through the appropriate government portals
Register Parent Company (2-4 weeks)
Register with the Company Information and Electronic Company Registration Service (Cégkapu)
Website: https://www.e-cegjegyzek.hu/
Submit required forms and pay the applicable registration fee (around €100-€300)
Obtain a Tax Identification Number (Adószám) and Company Registration Number (Cégjegyzékszám)
Register Branch Office (2-4 weeks)
Register with the local government office (Kormányhivatal)
Submit specific forms and pay any applicable fees
Obtain a unique registration number for the branch

Register with the National Tax and Customs Administration (NAV)
Website: https://nav.gov.hu/
Submit the necessary documentation and pay the required fees
VAT returns: monthly, quarterly, or annually (based on turnover)
The NAV provides detailed guides on their website (in Hungarian) explaining the VAT registration process

Register with the Hungarian State Treasury (Magyar Államkincstár)
Use the online services to submit the appropriate forms
File Initial Returns
Bevallás (monthly tax return)
Egyéni Vállalkozói Járulék (monthly social security contributions)
The Hungarian State Treasury offers guidance on the requirements and process

Corporate Tax (Társasági adó)
File through the NAV online portal
Due annually by the end of the fifth month after the end of the tax year
VAT Returns
Monthly/Quarterly/Annual deadline: 10th day of the third month after the tax period
Employer-related Returns
Bevallás and Egyéni Vállalkozói Járulék: Due by 10th of the following month

The National Tax and Customs Administration (NAV) and Hungarian State Treasury provide comprehensive guides and support for all tax-related procedures, ensuring businesses can navigate the Hungarian regulatory landscape efficiently.

Relevant Government Agencies and Websites for Business in Hungary

Company Information and Electronic Company Registration Service (Cégkapu)

Website: https://www.e-cegjegyzek.hu/
The Cégkapu is the central platform for company registration and management in Hungary. It provides essential services such as:

Online company registration and modifications
Issuance of Tax Identification Number (Adószám) and Company Registration Number (Cégjegyzékszám)
Access to public business information

Local Government Office (Kormányhivatal)

The local government offices (Kormányhivatal) handle the registration of branch offices and other business establishments at the regional level.

NAV (National Tax and Customs Administration)

Website: https://nav.gov.hu/
NAV is the Hungarian Tax Authority, responsible for various tax-related matters:

VAT (ÁFA) registration and returns
Corporate tax (Társasági adó) filing
Providing tax-related guidance and compliance support

Hungarian State Treasury (Magyar Államkincstár)

Website: https://www.allamkincstar.gov.hu/
The Hungarian State Treasury oversees employer registration and manages employee-related obligations, such as:

Employer registration
Submission of monthly tax returns (Bevallás) and social security contributions (Egyéni Vállalkozói Járulék)
Guidance on labor laws and employment regulations

These government agencies and their respective websites form the core of the business administration and compliance ecosystem in Hungary. Entrepreneurs and businesses should familiarize themselves with these platforms to navigate the Hungarian business landscape effectively.