How does it work?
1. Placing your order
Choose your payment plan
All our packages include company formation & 1 year of virtual office (seat address + mail forwarding). We have 3 payment plans for you to choose from. It's as easy as booking a flight! If you choose a package with monthly installments, these will be charged to your credit card.
Provide some basic personal details
In our order form, you will be asked to provide us with your personal details. We take your privacy very seriously, so everything is completely secure and safe. You can check our privacy policy here.
Make your payment via credit card
Once you have filled out the order form, you will confirm your details and sign your order electronically. After this, you will be redirected to a secure page where you can make your payment via credit card, based on the package you've picked.
2. Company formation
After we receive your paid order, we will send you a link where you can fill in the info we need for registering your company. Based on the information you provide, you will then receive (via email) all the documents you need to sign.
Where and how to sign the documents? There are three options:
Anywhere in the world
You can sign the documents anywhere in the world. Your signature will need to be authenticated by a notary or other authority, for which we will give you detailed instructions based on where you are located.
At our office in Budapest
If you happen to be in Budapest and want to sign in person, you are more than welcome to! We will schedule an appointment with you and you can come visit us at our office.
Via Skype
This option is available to EU citizens located anywhere in the world. These clients can request a Skype appointment from us, and sign their documents without having to visit Budapest or a notary.
Once everything has been signed and returned to us, we submit them to the company court and your new company, complete with registration and VAT numbers, will be ready in 3-5 days. We will inform you when this is done, and provide you will all the official documents and information you need to start doing your business.
3. Getting started
Congrats! At this point you are the owner of a Hungarian company. You will now need to do the following:
Sign up with an accountant
You can hire us to keep your books or find someone else to do them for you. Make sure you do this ASAP, so you can get instructions on issuing invoices and keeping your papers in order. Read more about this on our finance blog by clicking here.
A local Hungarian bank account
The company registration can be done fully remotely, so the only thing that requires a trip at some point is the opening of a Hungarian bank account. While you can start trading through an online account like Revolut or Wise, you should plan on making your way to a Hungarian bank in the near future.
If it is unrealistic for you to travel to Hungary, consider appointing someone you trust (a friend or business associate) as managing director who will be able to make the trip and open the bank account. This person can later be removed from the company if you wish.
While these services are not included in our start-up packages, you can order them from us as separate service or you can take care of them by yourself.
If you get stuck or require help at any point along the way, we will be there to help you out!
More info
👨‍💼 Process
In Hungary, any adult person can start a company, regardless of nationality or place of residence, unless they are banned by a court from doing so.
A limited liability company (Ltd, or “Kft” in Hungarian), which is the most used business form, mainly because of the simplified registration procedure. Unlike other structures, a Kft can be established by just one person, and the owner(s) is/are only liable up to their contribution to the company’s capital. The minimum starting capital is HUF 3 million (cca. USD 7,500) but this does not need to be deposited in the bank (the owner can sign a declaration that the money is available) and can be spent on company expenses as well.
In just 3-5 business days, your company will be ready. We’ll notify you and send your company details, your registry number and VAT number.
Yes. With Quicker, you will have full-service assistance with setting up a business in Hungary. Hungarian company formation is one of the fastest in the European Union – from the signing and submission of the registration documents, it takes no more than a few days. Unlike in most European jurisdictions, you will also receive an international VAT number along with the registration, so you can start working immediately, and take advantage of Hungary’s favorable 9% corporate tax.
If you would like to form the company without traveling to Hungary, you will receive a package of the following documents:
- A power of attorney
- A form to identify yourself to the authorities
- A declaration about not being forbidden from company formation
- A declaration in which you accept the position of managing director in the company
- A specimen signature to verify your signature used to sign for the company.
The company registration can be done fully remotely, so the only thing that requires a trip at some point is the opening of a local bank account. While you can start trading through an online account like Revolut or Wise, you should plan on making your way to a Hungarian bank in the coming months. If it is unrealistic for you to travel to Hungary, consider appointing someone you trust (a friend or business associate) as managing director who will be able to make the trip and open the bank account. (This person can later be removed from the company if you wish.)
The procedure depends on which data are changed – core data or supporting data. If you want to change the core data of your company (name, seat address, main activity, owners, or representatives) you will need a company modification procedure, which is done by a lawyer (we can naturally assist with this). Updating data relevant for administrative purposes (adding additional business activities or additional bank accounts, for example) does not need a full company modification procedure and can be done by your accountant.
There is no obligation to deposit the share capital in the bank, and 100% of this capital can be spent immediately after incorporation on company-related expenses. If the entire starting capital is spent on business expenses, you have no further obligation to have it available. If not, then in the case of an inspection you may be requested to present it in the form of cash or a bank deposit. Your accountant will walk you through this.
đź“š Terminology
A virtual office is a service consisting of a seat address and mail forwarding for your company. It is mandatory in Hungary for a company to have a seat address and with our mail forwarding, you will always receive communication from the authorities in time, electronically, with English summaries or instructions as needed.
Company gate (Cégkapu) is a web portal with an electronic storage where official mail is always accessible. It is similar to the registered address of your company, while it is not physical but electronic. Registration is compulsory, just like for the registered seat. You can register your Hungarian company at the Company Gate through the Client Gate (Ügyfélkapu).
VAT (value added tax) is a sales tax added to most goods and services. You will charge VAT towards individual (retail) buyers (whether they are from Hungary, the EU or any third country) or corporate EU-based buyers who are not registered for VAT. If you are an international trader, you may not charge VAT at all if your buyers are VAT-registered EU companies or corporate clients outside the EU.
Corporate tax (also known as “profit tax”) is paid on net profits (revenue minus expenses). In Hungary the rate of the tax is 9%, which is the lowest in the EU. The amount to be paid is calculated yearly, however, quarterly pre-estimated contributions are paid during the year. For example, if the yearly profit of your company is EUR 10,000, you will need to pay EUR 900 in corporate tax.
Local business tax (often abbreviated as IPA or HIPA in Hungarian for “helyi iparűzési adó”) is a yearly tax collected by municipalities. Your enterprise needs to pay IPA/HIPA where its registered seat and establishments are located. The base of the local business tax is equal to the revenues of your Hungarian company minus direct expenses (so in this case, unlike for corporate tax, general expenses like wages or office rent etc. are not deducted from the revenue). The tax rate is determined by the municipality and can range from 0 – 2%.
🤔 Concerns
Company Registry’s online data base is publicly accessible (Igazságügyi Minisztérium Céginformációs és az Elektronikus Cégeljárásban Közreműködő Szolgálat) and contains companies’ details such as address, capital, tax number, bank account, shareholders and managing directors.
Helpers Hungary Kft. (registration number: 01-09-869492, seat address: 1094 Budapest, Tompa u. 9. 5. em. 3.) has been in operation since 2006. Over the years we have built a team of 25+, become market leader in business and relocation services for foreign SMEs, and assisted in setting up hundreds of companies of various sizes and fields. You can visit our main website here (https://helpers.hu/) or feel free to give us a call. We are also happy to meet you in person; however, please remember to contact us for an appointment first.
When you want to spend company money on personal expenses, you will take a dividend from the company. How much you pay in taxes on your dividend depends on whether you are a tax resident in Hungary or elsewhere, and whether you have any other income. It is best to consult an accountant in your home country to see how to report income from your Hungarian company, as it varies country by country.