Hungary is among the member states of the European Union that have very favorable conditions for investment and company registration. Among the reasons for the popularity of immigrating to Hungary are the low tax rate, strong infrastructure, living conditions with affordable costs, quick and easy company registration, the need for the lowest amount of initial capital for investment, having a central European location, and easy visa granting. The country is through Hungarian company registration and many other cases. Stay with us in this article from Andisheh Immigration Institute, we want to review all the important points for registering a company in Hungary.
Advantages of company registration in Hungary
Today, obtaining a Hungarian visa through company registration has many positive benefits. In fact, one of the easiest ways to immigrate to Hungary is investment. It is the method of company registration that provides the best opportunities especially for Iranian immigrants.
In order to register a company in Hungary, it is necessary to deposit the equivalent of the minimum initial capital determined in the reliable banks of this country. Then you can register the company by providing complete documents. You may ask why Hungary is the right country to register a company and what are its advantages.
- The low tax rate in this country: In Hungary, the income tax rate is only nine percent, which, if compared with other European countries, definitely represents the lowest tax rate. This is the reason why even world-famous companies such as Benz have made this country the location of a large part of their activities.
- Request for the lowest amount of initial capital: In this country, investors are charged a smaller amount for the company registration bond. For this reason, people who have less capital consider this country as the best option.
- In Hungary, an international tax number is issued to companies that intend to register as soon as possible.
- The fastest company registration time among many European countries belongs to this country. Companies that do not have any problems and have complete documents can start their company legally within 48 to 72 working hours.
- Registering and setting up a company in Hungary does not require spending big money, but you can achieve your goal with a lower cost.
- The conditions for obtaining a visa from this country are easy and the cost is very low.
- It is favorable in terms of geographical location (centrality in the European Union and Schengen membership)
Types of companies for company registration in Hungary
It is definitely possible to register a company in different types in Hungary, and we will discuss a few things that have been determined for foreign investors:
Limited liability company: In this type of company, the shareholders are responsible for the capital they have provided, and the minimum capital determined must be applied.
Private or public stock company: In both types of companies, you will see a different amount of minimum initial capital.
Company according to general partnership: in this method, minimum initial capital is not needed and all shareholders are jointly responsible for obligations.
Company according to limited partnership: in this method, the minimum capital is not specified and the responsibility is limited for some people and full for others.
Individual business: in this method, a person with his ability can legally cooperate with many registered companies.
Company registration procedures in Hungary
Company registration in Hungary is also done according to certain rules, the most important of which will be mentioned below:
- Choose a unique name for your company in the first step. According to the naming rules, the last name of the company should indicate its type.
- Define the structure of the company and state the position of each partner.
- A list of shareholders should be prepared along with the amount of capital they have provided to the company.
- According to the law, a sample signature of partners or shareholders must be provided.
- Determine in which field you intend to operate by registering the company.
- The company’s business plan must be prepared and presented accurately.
- Preparing the company’s articles of association
- Accurately filling the real and legal forms of company registration
- Registering the company in the Ministry of Justice of Hungary and receiving the company registration certificate
- Registering the company in the Hungarian tax, social security and insurance services
- Opening a bank account for the company and depositing the initial capital
The process of obtaining a country visa through Hungarian company registration
In order to get a visa and stay in Hungary, you have to go through two steps. At first, it is a temporary visa that is issued annually and can be extended.
In order to obtain a temporary residence in Hungary, you must submit the company registration documents to the Ministry of Justice and the Immigration Department of this country.
Keep in mind that the one-year visa extension you receive depends on the company being active.
In the second stage, after five years of temporary residence extension and the continuous activity of the company, you can apply for permanent residence. For this purpose, conditions such as the company’s activity, its profitability, regular payment of taxes, non-commitment of crimes and realization of the business plan must be maintained.
Regarding the residence of your spouse and children under the age of eighteen, it is enough to apply together with your own residence application.
Company registration fee in Hungary
In Hungary, you can estimate the amount of costs according to the type of company you want to register. Of course, the determination of costs is not only dependent on the company and its types, but you should also consider the side costs and personal costs of you and your family.
Time required for company registration
There are two ways to register in Hungary. The first method is electronic, according to which the registration office of this country performs the necessary checks and announces the result within one day after sending the application and completing the documents.
In the case of the second type or the standard method, after sending the application and completing the documents, it takes fifteen days for the result to be issued.
For more information in this field, you can contact our consultants at Andisheh Migration Company.