Starting a Business in Hungary
Hungary is a European country that has a lot to offer. From the beautiful architecture to its diverse culture, there are many things to explore while you’re setting up your business. However, when it comes to starting a company in Hungary, there are some things you should know before making your first steps into this new world. In this article we’ll cover everything from the costs of doing business in Hungary, labour laws and taxes so that you can assess whether or not it’s right for you!
What is the cost of doing business in Hungary?
The cost of starting a business in Hungary is lower than many other EU countries, as it has a low tax rate and labour costs.
However, there are still some costs that you should be aware of:
- The cost of living in Hungary is higher than the average EU country. Budapest has been named one of the most expensive cities in Europe by Mercer’s Cost of Living Survey 2018.
- It can cost up to EUR 3 000 to register a limited liability company (LLC) in Hungary, depending on its structure and services provided by law firms or accountants who assist with registration. This fee includes filing with all relevant government agencies such as tax authorities and social security funds as well as obtaining an official company seal from the Ministry for National Economy (MNE). Registration fees may vary depending on whether you use an accountant or lawyer; expect higher costs if using either service provider due to additional paperwork required during this process such as submitting articles of association along with other documents required under Hungarian law before registering your business name(s).
What are the main taxes?
- Corporate tax
- Personal income tax
- Value added tax (VAT)
- Property taxes
What is the time to set up a company?
In Hungary, it takes on average 1 day to register a company and 2 days to open a bank account. You can obtain your employer identification number (EIN) in 3 days and a VAT number in 1 day.
What are the country’s labour laws?
Hungary has a minimum wage of HUF 211,000 (approximately USD 830) per month. This amount is set by the government and applies to all employees regardless of their age or experience level. If your business employs less than 20 people, you may be exempt from paying this amount; however, it’s still worth knowing about as it will help you determine if your salary structure is competitive enough for hiring new staff.
What are some must-know local laws and regulations related to your industry?
The Hungarian government has a website with a list of local laws and regulations for each industry. It’s in Hungarian, but it’s easy enough to find the English version. The site is updated regularly, so you can check it often if you need information about changes in law or regulation.
The good news is that there are plenty of resources available.
The good news is that there are plenty of resources available. The Hungarian government and local chambers of commerce will help you get started, as well as many other organizations. You can also find an abundance of online resources to help you through the process.
Conclusion
Hungarian law is complex, but it doesn’t have to be a barrier to doing business. There are plenty of resources available to help you navigate the legal landscape and get started with your new venture in Hungary. If you have questions about any aspect of this process, please contact us at Firma X Hungary. We’d love to hear from you!
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