Are you an entrepreneur looking for an ideal location to start or expand your business operations in Europe?
Look no further than Hungary!
This central European country offers a favorable business environment, low operating costs, and easy access to the European market.
The Hungarian government also provides a range of incentives and support programs to encourage foreign investment and business growth.
With its stable economy, streamlined administrative procedures, and competitive tax rates, Hungary is a great place to start or expand your business.
In this article, we will explore in more detail the benefits of setting up a company in Hungary.
List of Benefits of Setting up a Company in Hungary
Here is a list of the numerous benefits of setting up a company in Hungary:
1. The Lowest Corporate Tax in Europe
The enterprises that operate in Hungary are required to pay a maximum corporate tax rate of 9% after the earnings, regardless of whether they are small enterprises or large multinational companies (MNCs). This is a flat tax that makes it not just an ideal starting point but also a reliable element in expansion and growth.
To put it in the perspective of this, the 9% rate is not only extremely low, but it’s also the lowest in the European Union, by far. This gives the businesses of Hungary a distinct advantage in the market.
Additionally, neither companies nor private persons are subject to any dividend taxes or withholding taxes.
2. Easy Company Formation
The establishment of a firm in Hungary is possible within three days and can be done entirely online.
You don’t have to endure hours of waiting every day signing papers and doing other formalities, you can sit at your computer and complete the process at your own pace and not waste time relocating.
Additionally, irrespective of country of origin, anyone may establish an organization in Hungary. A Hungary corporation just needs one director and shareholder, and they might both be the same individual and need not be residents.
3. Manage Your Company Remotely
It is possible to manage your business through the internet from your own home, at your office, or out of the country, saving time and offering quicker service than the administration in person. It is also one of the significant benefits of setting up a company in Hungary.
4.EU Membership
Hungary is a member of the European Union, providing businesses with entry to a market of above 448 million customers. EU membership also provides businesses with access to funding opportunities and business support services.
Incorporating an organization in Hungary gives you immediate access to all of the European Union. Every part of the continent is reachable in a matter of hours, making travel quite simple.
5. Government Support
The Hungarian government offers a range of incentives and support programs to encourage foreign investment and business growth. These include tax incentives, grants, and subsidies, and hence, is one of the crucial benefits of setting up a company in Hungary.
6. Investment Opportunities
Hungary offers investment opportunities in a range of sectors, including manufacturing, IT, healthcare, tourism, and renewable energy. The nation maintains a competitive benefit in the automotive sector, with several multinational companies already established in the country.
7. Obtaining an EU VAT number is simple
Many nations, notably those in Europe, utilize the value-added tax identification number as a means of identification for value-added tax reasons. When a company is formed in Hungary, the EU VAT number can be acquired right away, permitting your company to launch swiftly.
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Conclusion
Hungary offers a wealth of benefits for entrepreneurs looking to start or expand their business operations in Europe. Hungary has something to offer whether you are a small startup or a large multinational corporation. By taking advantage of the opportunities and resources available in Hungary, you can position your business for growth and success in the European market.
It is recommended to obtain assistance from skilled professionals from Odint Consultancy to learn more about the benefits of setting up a company in Hungary.
FAQ’s
The legal requirements for starting a business in Hungary vary depending on the type of business structure you choose. Generally, you must register your business with the Hungarian authorities and obtain the necessary licenses and permits.
The corporate tax rate in Hungary is currently 9%, one of the lowest rates in the European Union.
Yes, Hungary has a highly skilled and educated workforce, particularly in sectors such as automotive, IT, and healthcare.
The expense of existing in Hungary is generally lower than in many other European countries, making it an attractive destination for businesses looking to keep operating costs low.
Yes, the Hungarian government offers a range of incentives and support programs for foreign investors, including tax incentives, subsidies, and grants.
While knowledge of the Hungarian language can be helpful, it is not essential for doing business in Hungary.
Parshant Gaur is a company formation specialist with 4+ years of expertise in international business. Financial planning, risk management, and other related areas.
