Hungary, situated in the heart of Europe, is an attractive hub for businesses due to its strategic location, stable economy, and membership in the European Union. The country provides a favorable entrepreneurial environment with numerous benefits for international business.
Forms of Business Registration in Hungary
Entrepreneurs in Hungary can choose from various legal entities, including Korlátolt Felelősségű Társaság (Kft) or Limited Liability Company, Nyilvánosan Működő Részvénytársaság (Nyrt) or Public Limited Company, branches, and representative offices. The registration process in Hungary may also involve considerations for the Small Business Tax (KATA), which is applicable to companies meeting specific criteria, such as revenue thresholds.
Criteria for Small Business Tax (KATA) in Hungary:
- Annual revenue does not exceed 12 million forints.
- The company has no employees (except the owner).
- Business operations fall within specific sectors, such as trade, real estate leasing, and catering.
Advantages of Company Registration in Hungary
- Strategic Location: Hungary’s central position provides convenient access to both EU markets and Eastern European countries.
- Stable Economy: Hungary is renowned for its stable economy and sustained growth.
- Tax Incentives: The country offers competitive tax rates and various incentives for companies.
Tax System in Hungary
Hungary presents an attractive tax system for businesses, including:
- 9% – Corporate Income Tax
- 2% – Local business tax in certain municipalities
- 27% – Value Added Tax (VAT)
- 15% – Personal Income Tax, including dividends paid to individuals
- 0% – Tax on dividends paid to legal entities
Our professionals are ready to assist you with the company registration process in Hungary, help you choose the most suitable business form, and provide recommendations on tax benefits. Ensure the success of your business in this dynamic European country.
Join the ranks of successful entrepreneurs in Hungary—start your business today!
