Official Name: Hungary
Budapest
Hungarian
Forint (HUF)
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Hungary
Hungary, a landlocked country in Central Europe, has a rich and diverse history, culture, economy, and politics. The country has a population of around 9.8 million people and is known for its beautiful architecture, thermal baths, and delicious cuisine.
History:
Hungary has a long and complex history, with evidence of human settlements dating back to the Stone Age. In the 9th century, the Magyar tribes established the Kingdom of Hungary, which lasted until the Ottoman Empire invaded the country in the 16th century. Hungary regained its independence in the late 17th century but was later occupied by the Soviet Union in the aftermath of World War II. The country finally transitioned to a multiparty democracy in 1990 and has since become an active member of the European Union.
Culture:
Hungary has a rich cultural heritage that is reflected in its music, literature, art, and architecture. Hungarian folk music is known for its melancholic melodies, and the country is famous for producing some of the greatest classical composers, such as Franz Liszt, Béla Bartók, and Zoltán Kodály. Hungarian cuisine is also renowned for its delicious dishes, such as goulash, chimney cake, and stuffed cabbage, which often feature paprika, a spice that is commonly used in the country.
Economy:
Hungary has a mixed economy that is driven by both industry and agriculture. The country is a major producer of machinery, electronics, and chemicals and has a strong automotive sector, with companies such as Audi, BMW, and Mercedes-Benz having factories in the country. Hungary is also an important agricultural producer, with crops such as wheat, corn, and sunflower seeds being among the top exports.
Politics:
Hungary is a parliamentary republic with a president as its head of state and a prime minister as its head of government. The country has a multiparty system, with the two main parties being the center-right Fidesz party and the center-left Hungarian Socialist Party. In recent years, Hungary has been criticized for its increasingly authoritarian government, which has been accused of restricting the freedom of the press and judiciary, as well as being hostile towards minorities and refugees.
In conclusion, Hungary is a country with a rich history, culture, economy, and politics. While the country has faced its fair share of challenges over the centuries, it has emerged as a modern, dynamic nation that is open to the world and eager to play its part in shaping the future of Europe and beyond.
Types of companies in Hungary
Limited Liability Company (Kft.):
A limited liability company is the most popular type of company in Hungary, and it requires at least one founder. The liability of each member is limited to the amount of their capital contribution. A Kft. must have a registered office in Hungary, a minimum share capital of HUF 3 million (approx. EUR 8,300), and at least one managing director.
Joint-Stock Company (Nyrt.):
A joint-stock company is a company whose capital is divided into shares, and the liability of each shareholder is limited to the amount of their capital contribution. It requires at least three founders, a registered office in Hungary, and a minimum share capital of HUF 20 million (approx. EUR 55,600). A Nyrt. must also have a board of directors, a supervisory board, and an auditor.
General Partnership (Kkt.):
A general partnership is a company formed by two or more partners who bear unlimited liability for the debts of the company. The partners are also responsible for the management and operation of the company. A Kkt. does not have a minimum capital requirement, and the partners’ personal assets are at risk in the case of insolvency.
Limited Partnership (Bt.):
A limited partnership is similar to a general partnership, but it includes at least one general partner who has unlimited liability and at least one limited partner whose liability is limited to their capital contribution. A Bt. does not have a minimum capital requirement, and the limited partners cannot participate in the management of the company.
Sole Proprietorship (Egyéni vállalkozó):
A sole proprietorship is a business operated by a single individual. The proprietor is personally responsible for all aspects of the business, including its debts and obligations. This type of company does not have a minimum capital requirement, and it is the easiest and cheapest type of company to establish in Hungary.
Advantages of company registration in Hungary
Access to the European Union Market: Hungary is a member of the European Union, which means that companies registered in Hungary have access to the world’s largest single market with over 500 million consumers. This provides an excellent opportunity for businesses to expand their operations and increase their customer base.
Strategic Location: Hungary is located at the heart of Europe, with easy access to other European countries, including Germany, Austria, and the Czech Republic. This makes it an ideal location for companies that want to do business in Europe.
Favorable Tax System: Hungary has a relatively low corporate tax rate of 9%, which is one of the lowest in the European Union. This makes it an attractive destination for businesses looking to minimize their tax burden.
Skilled Workforce: Hungary has a highly educated and skilled workforce, with a strong emphasis on STEM (Science, Technology, Engineering, and Math) education. This makes it an ideal location for businesses that require highly skilled workers.
Strong Infrastructure: Hungary has a modern and efficient infrastructure, including a well-developed transportation network, modern telecommunications system, and high-quality healthcare and education systems.
Supportive Business Environment: Hungary has a supportive business environment, with a well-established legal system, transparent regulations, and a pro-business government that encourages foreign investment.
Low Business Costs: Hungary has relatively low business costs, including low office rents, low energy costs, and low labor costs compared to other countries in the European Union.
“Our team can provide assistance if you need help registering a company in Hungry”
Common questions
How long does it take to set up a company in Hungary?
The process typically takes between 1-2 weeks, depending on the type of company and the completeness of the required documentation.
What are the basic requirements to set up a company in Hungary?
A company name, legal form, registered address, management team, and minimum share capital (if applicable) are required.
What is the minimum share capital required to set up a company in Hungary?
The minimum share capital varies depending on the legal form of the company. For example, a limited liability company (LLC) requires a minimum share capital of HUF 3 million.
Can foreigners set up a company in Hungary?
Yes, foreigners can set up a company in Hungary, and they can hold 100% of the shares in the company.
How do I choose the right legal structure for my company in Hungary?
The choice of legal structure depends on factors such as liability, tax obligations, and the size of the company. Popular structures include LLCs and joint-stock companies.
Do I need to have a registered office in Hungary to set up a company?
Yes, a registered office in Hungary is required to set up a company.
What are the steps involved in setting up a company in Hungary?
The steps involve choosing a company name, preparing the required documentation, opening a bank account, and registering the company with the Hungarian authorities.
What are the registration fees for setting up a company in Hungary?
The registration fees vary depending on the type of company and the share capital.
What documents do I need to prepare for setting up a company in Hungary?
The required documents include the company’s articles of association, the deed of foundation, and the appointment of the management team.
What is the process for registering a company in Hungary?
The process involves submitting the required documentation to the Hungarian authorities and obtaining a tax identification number.
Can I register my company online in Hungary?
Yes, it is possible to register a company online in Hungary.
What are the taxes and fees associated with setting up a company in Hungary?
The taxes and fees include corporate income tax, social security contributions, and value-added tax (VAT).
Do I need to have a local director to set up a company in Hungary?
No, a local director is not required to set up a company in Hungary.
Can I have a virtual office address in Hungary?
Yes, it is possible to have a virtual office address in Hungary.
How do I open a bank account for my company in Hungary?
The process involves choosing a bank, preparing the required documentation, and opening a bank account.
What are the accounting requirements for a company in Hungary?
Companies are required to maintain accounting records and prepare financial statements.
Do I need to register for VAT in Hungary?
Yes, companies with a turnover exceeding HUF 12 million per year are required to register for VAT.
What is the corporate tax rate in Hungary?
The corporate tax rate is 9%.
Are there any tax incentives for setting up a company in Hungary?
Yes, there are tax incentives available for companies investing in certain sectors or regions.
How do I obtain a business license in Hungary?
The process involves obtaining the necessary permits and licenses from the relevant authorities.
Do I need to register my company with the Hungarian Chamber of Commerce?
No, registration with the Hungarian Chamber of Commerce is not mandatory.
Can I hire employees in Hungary for my company?
Yes, companies can hire employees in Hungary.
What are the labor laws in Hungary?
The labor laws in Hungary govern the rights and responsibilities of employers and employees. These laws cover various areas such as working hours, overtime pay, vacation time, sick leave, minimum wage, discrimination, and termination of employment.
What are the minimum wages in Hungary?
The minimum wage in Hungary is currently set at 167,400 HUF per month for full-time employees. However, the minimum wage may vary depending on the employee’s age, education, and experience.
How do I hire employees in Hungary?
To hire employees in Hungary, you must first register your company with the tax authorities and obtain a tax number. You will also need to prepare an employment contract and register your employees for social security and other benefits.
What are the social security contributions in Hungary?
The social security contributions in Hungary are paid by both the employer and the employee. The current rate is 18.5% of the employee’s gross salary, with the employer paying 15.5% and the employee paying 3%.
Do I need to register my employees for social security in Hungary?
Yes, you must register your employees for social security in Hungary. This includes health insurance, pension, and other social benefits.
How do I terminate an employee in Hungary?
To terminate an employee in Hungary, you must provide a written notice of termination, stating the reason for termination. You must also pay any outstanding wages, vacation time, and other benefits owed to the employee.
What are the legal requirements for terminating an employee in Hungary?
In Hungary, you can terminate an employee’s contract for a number of reasons, including misconduct, poor performance, or redundancy. However, you must follow the legal requirements, such as providing a notice period and a valid reason for termination.
What are the work permit requirements for foreign employees in Hungary?
Foreign employees may require a work permit to work in Hungary. The work permit requirements vary depending on the employee’s nationality, qualifications, and the duration of their stay in Hungary.
How do I obtain a work permit for foreign employees in Hungary?
To obtain a work permit for foreign employees in Hungary, you must submit an application to the Hungarian Immigration and Citizenship Office. You will need to provide proof of the employee’s qualifications, job offer, and other necessary documents.
What are the immigration requirements for foreign employees in Hungary?
Foreign employees must obtain a residence permit to work and live in Hungary. The immigration requirements vary depending on the employee’s nationality, qualifications, and the duration of their stay in Hungary.
Can I sponsor a foreign employee for permanent residency in Hungary?
Yes, you can sponsor a foreign employee for permanent residency in Hungary, provided they meet the immigration requirements and other criteria set by the Hungarian government.
How do I register my company with the Hungarian tax authorities?
To register your company with the Hungarian tax authorities, you must submit an application and provide certain documents, such as proof of registration, identification documents, and other necessary information.
What are the reporting requirements for my company in Hungary?
Your company must submit regular reports to the Hungarian tax authorities, such as quarterly and annual tax returns, VAT returns, and other financial statements.
How do I file my annual tax return in Hungary?
You can file your annual tax return in Hungary electronically or in person at the tax office. You must submit your tax return by the deadline, which is usually May 31st of the following year
What are the penalties for late filing of tax returns in Hungary?
Late filing of tax returns in Hungary can result in penalties and interest charges. The penalty for late filing is generally 0.5% of the tax due for each day of delay, up to a maximum of 50% of the tax due.
Can I claim tax deductions for my business expenses in Hungary?
Yes, you can claim tax deductions for your business expenses in Hungary, as long as they are incurred for the purpose of generating income for your business. Common deductible expenses include salaries, rent, utilities, and office supplies.
How do I handle payroll taxes for my employees in Hungary?
As an employer in Hungary, you are required to withhold payroll taxes from your employees’ salaries, including income tax and social security contributions. You must then remit these taxes to the Hungarian tax authorities on a monthly basis.
What are the social security contribution rates in Hungary?
The social security contribution rates in Hungary vary depending on the type of social security contribution. The employer’s contribution rate for social security is currently 15.5%, while the employee’s contribution rate is 18.5%.
How do I handle value-added tax (VAT) for my business in Hungary?
If your business is registered for VAT in Hungary, you must charge VAT on your taxable supplies and remit the VAT collected to the Hungarian tax authorities on a monthly or quarterly basis. You can also claim back VAT paid on your business expenses.
What are the VAT rates in Hungary?
The standard VAT rate in Hungary is currently 27%, but reduced rates of 5% and 18% apply to certain goods and services.
How do I register for VAT in Hungary?
To register for VAT in Hungary, you must complete an application form and submit it to the Hungarian tax authorities. You may also be required to provide additional documentation, such as proof of registration with the company register.
What are the invoicing requirements for my company in Hungary?
Invoicing requirements in Hungary include the issuance of a proper invoice containing certain information, such as the name and address of the supplier and customer, the date of the transaction, and a description of the goods or services provided.
Can I use electronic invoicing in Hungary?
Yes, electronic invoicing is allowed in Hungary, as long as the requirements for electronic invoicing are met.
How do I handle import and export taxes for my business in Hungary?
Import and export taxes in Hungary are generally determined by the customs value of the goods being imported or exported. You may also need to obtain import or export licenses or permits, depending on the type of goods involved.
What are the intellectual property laws in Hungary?
Intellectual property laws in Hungary cover patents, trademarks, copyrights, and other forms of intellectual property. These laws are enforced by the Hungarian Intellectual Property Office.
How do I protect my intellectual property in Hungary?
To protect your intellectual property in Hungary, you can apply for patents, trademarks, and other forms of intellectual property registration. You can also seek legal assistance to enforce your intellectual property rights.
How do I resolve disputes with suppliers or customers in Hungary?
Disputes with suppliers or customers in Hungary can be resolved through litigation, arbitration, or other alternative dispute resolution methods.
What are the dispute resolution mechanisms in Hungary?
Dispute resolution mechanisms in Hungary include the court system, arbitration, and mediation.
Can I use alternative dispute resolution methods in Hungary?
Yes, alternative dispute resolution methods such as arbitration and mediation are recognized and commonly used in Hungary.
What are the rules and regulations for e-commerce in Hungary?
In Hungary, e-commerce is regulated by the Electronic Commerce Act. This law outlines the rules for online business, including requirements for website content, consumer protection, electronic contracts, and the use of electronic signatures. Online businesses must also comply with the Hungarian Consumer Protection Act and the Hungarian Act on Distance Contracts, which provide further protections for consumers.
What are the data protection laws in Hungary?
The main data protection law in Hungary is the General Data Protection Regulation (GDPR), which is a European Union regulation that sets out rules for the protection of personal data. Hungary has also enacted its own national data protection law, the Act CXII of 2011 on Informational Self-Determination and Freedom of Information, which supplements the GDPR. This law regulates the collection, processing, and storage of personal data in Hungary.
How do I comply with data protection laws in Hungary?
To comply with data protection laws in Hungary, businesses must ensure that they collect and process personal data in a lawful, fair, and transparent manner. They must also obtain consent from individuals to process their data and inform them of their rights in relation to their data. Businesses must implement appropriate technical and organizational measures to protect personal data and ensure its confidentiality, integrity, and availability. Additionally, businesses must appoint a data protection officer (DPO) if certain criteria are met. The DPO is responsible for overseeing the organization’s data protection practices and ensuring compliance with data protection laws.
Documents required to register a company
Articles of Association: This document outlines the company’s name, purpose, registered address, shareholders, and amount of capital.
Shareholder identification: The identification documents of all shareholders must be submitted.
Registered office: A registered office must be established in Hungary, and proof of ownership or rental agreement is required.
Board of Directors: The names and identification documents of the board of directors must be submitted.
Tax identification number: The company must obtain a tax identification number from the Hungarian tax authority.
Bank account: The company must open a bank account in Hungary and provide proof of the account.
Registration fee: A registration fee must be paid to the Hungarian Company Registration Court.
Trade license: Depending on the type of business, a trade license may be required.
VAT registration: If the company’s annual revenue exceeds a certain threshold, it must register for VAT.
Major Banks in Hungary
OTP Bank – https://www.otpbank.hu/en
OTP Bank is the largest commercial bank in Hungary, offering a wide range of financial services to individuals, SMEs, and large corporations. It has more than 1,500 branches and a presence in 11 countries.
Magyar Nemzeti Bank – https://www.mnb.hu/en
Magyar Nemzeti Bank is the central bank of Hungary, responsible for implementing monetary policy, issuing banknotes, and supervising the financial system. It also plays an important role in promoting financial stability and economic growth.
K&H Bank – https://www.kh.hu/en
K&H Bank is one of the leading banks in Hungary, offering retail and corporate banking services. It has a network of over 200 branches and serves more than 1.5 million customers.
Raiffeisen Bank – https://www.raiffeisen.hu/en
Raiffeisen Bank is a subsidiary of Raiffeisen Bank International AG, offering a broad range of banking and financial services to retail and corporate clients. It has a network of more than 100 branches across Hungary.
Erste Bank Hungary – https://www.erstebank.hu/en
Erste Bank Hungary is a subsidiary of Erste Group, one of the largest financial services providers in Central and Eastern Europe. It offers a wide range of banking and financial services to retail and corporate clients, including loans, deposits, and investment products.
CIB Bank – https://cib.hu/en/
CIB Bank is a subsidiary of Intesa Sanpaolo, offering a wide range of banking services including loans, deposits, and investment products to individuals, SMEs, and large corporations.
“Our team can provide assistance if you need to open a bank account in Hungary”
The top universities in Hungary
Eötvös Loránd University (ELTE)
Location: Budapest
Website: www.elte.hu/en/
Major Courses: Arts and Humanities, Social Sciences and Management, Life Sciences and Medicine, Science and Technology
Central European University (CEU)
Location: Budapest and Vienna
Website: www.ceu.edu/
Major Courses: Social Sciences and Management, Arts and Humanities, Law, Public Policy and Global Affairs
University of Debrecen
Location: Debrecen
Website: www.unideb.hu/
Major Courses: Medicine and Health Sciences, Science and Technology, Agricultural Sciences, Social Sciences and Management, Arts and Humanities
Budapest University of Technology and Economics
Location: Budapest
Website: www.bme.hu/?language=en
Major Courses: Engineering, Natural Sciences, Economics and Social Sciences
University of Szeged
Location: Szeged
Website: www.u-szeged.hu/english
Major Courses: Medicine and Health Sciences, Arts and Humanities, Natural Sciences and Engineering, Economics and Business
Corvinus University of Budapest
Location: Budapest
Website: www.uni-corvinus.hu/
Major Courses: Economics and Social Sciences, Business Administration, Public Policy and Management
University of Pécs
Location: Pécs
Website: international.pte.hu/
Major Courses: Medicine and Health Sciences, Natural Sciences, Social Sciences and Management, Arts and Humanities
Szent István University
Location: Gödöllő
Website: www.szie.hu/en
Major Courses: Agricultural Sciences, Environmental Sciences, Veterinary Medicine
Óbuda University
Location: Budapest
Website: en.uni-obuda.hu/
Major Courses: Engineering, Computer Science, Business and Management
Budapest Metropolitan University
Location: Budapest
Website: metubudapest.hu/
Major Courses: Business, Communication, Arts and Humanities, Tourism and Hospitality
“If you need assistance registering for college or university, our team is here to help.”
Strange or unusual to visitors in Hungary
Greetings: Hungarians have a formal way of greeting people they don’t know, where they address the other person by their last name and use formal titles like “Mr.” or “Mrs.” instead of their first name.
Dining habits: In Hungary, it is customary to start a meal with soup, followed by the main course and then dessert. Additionally, it is considered impolite to leave any food on the plate.
Hot springs: Hungary is known for its thermal baths and hot springs, which may seem unusual to visitors who are not familiar with this tradition. It is also common to visit these baths in the nude, although some places offer swimsuits for those who prefer them.
Language: Hungarian is a unique language that is not related to any other major European language, which can make it difficult for visitors to communicate with locals.
Folk traditions: Hungary has a rich tradition of folk music, dance, and crafts, which may be unfamiliar to visitors from other parts of the world.
Public transportation: Budapest has an extensive public transportation system, including trams, buses, and a metro, but visitors may find it confusing at first to navigate the different lines and ticketing options.
Currency: Hungary uses the Hungarian forint (HUF) as its currency, which may take some getting used to for visitors who are used to euros or dollars. Additionally, some smaller businesses may only accept cash, so it’s a good idea to carry some forints with you.
“Tips for Newcomers: Adjusting to Life in Hungary ”
Learn the Language: Hungarian is a unique and challenging language, but making an effort to learn some basic phrases can go a long way in helping you to feel more comfortable in your new environment. Taking language classes or using language learning apps can also be helpful.
Embrace the Culture: Hungary has a rich cultural heritage, and taking the time to learn about Hungarian customs, traditions, and history can be a great way to feel more connected to your new home. Try attending local festivals, visiting museums, or sampling traditional Hungarian cuisine.
Find a Support Network: Moving to a new country can be lonely, so it’s important to find a support network. Joining social groups, clubs, or organizations can be a great way to meet new people and make friends.
Explore Your Surroundings: Hungary has many beautiful cities, towns, and natural landscapes to explore. Taking the time to explore your new surroundings can help you to feel more at home and familiar with your new environment.
Be Patient: Adjusting to life in a new country takes time, so be patient with yourself. It’s natural to feel homesick or frustrated at times, but remember that it’s all part of the process of adapting to a new culture and way of life.
Seek Help When Needed: If you’re struggling to adjust or feeling overwhelmed, don’t hesitate to seek help. There are many resources available, including counseling services, language support, and community organizations.
Top recruitment agencies in Hungary
Hays Hungary: https://www.hays.hu/
Randstad Hungary: https://www.randstad.hu/
Manpower Hungary: https://www.manpower.hu/
Adecco Hungary: https://www.adecco.hu/
Trenkwalder Hungary: https://www.trenkwalder.hu/
Prohumán 2001 Kft.: https://prohuman.hu/
Profession.hu: https://www.profession.hu/
KPMG Hungary: https://home.kpmg/hu/hu/home.html
PwC Hungary: https://www.pwc.hu/
Morgan Hunt: https://www.morganhunt.com/hungary/
Necessary phone numbers in Hungary
Emergency services (police, ambulance, fire): 112
Police: 107 or 112
Ambulance: 104 or 112
Fire department: 105 or 112
Roadside assistance: 188
Budapest Airport information: +36 1 296-7000
Hungarian Railways information: +36 1 444 44 99
Budapest Public Transport Company (BKK) information: +36 1 3 255 255
National Tax and Customs Administration: +36 40 42 42 42
National Health Insurance Fund: +36 1 471 5100
Tourist police: +36 1 438 8080
American Citizen Services (U.S. Embassy): +36 1 475-4400
British Embassy: +36 1 266 2888
Canadian Embassy: +36 1 392 3360
Australian Embassy: +36 1 373 7900
The best way to immigrate to Hungry
Work permit: If you have a job offer from a Hungarian employer, you can apply for a work permit. The employer must demonstrate that the position cannot be filled by a Hungarian or EU citizen. Once you obtain the work permit, you can apply for a residence permit.
Study permit: If you have been accepted to a Hungarian university or other educational institution, you can apply for a study permit. This allows you to live in Hungary while you study.
Business visa: If you want to invest in Hungary or start a business there, you can apply for a business visa. You will need to provide a business plan and demonstrate that your business will benefit Hungary.
Family reunification: If you have a family member who is a Hungarian citizen or legal resident, you may be eligible for family reunification. This allows you to join your family member in Hungary.
Humanitarian visa: If you are a refugee or otherwise in need of humanitarian protection, you may be eligible for a humanitarian visa.
International Language Center in Hungary
Berlitz Hungary – www.berlitz.hu – English, Hungarian, German, French, Italian, Spanish, Russian, Chinese, and more.
International House Budapest – www.ihbudapest.com – English, Hungarian, German, French, Italian, Spanish, and more.
Euro Nyelviskola – www.euro-nyelviskola.hu – English, Hungarian, German, French, Italian, Spanish, Russian, Chinese, and more.
Britannica International School – www.britannicaschool.hu – English, Hungarian, German, French, and more.
Corvinus University Language Center – languagecenter.uni-corvinus.hu – English, German, French, Italian, Spanish, and more.
Angol Intézet – www.angolintezet.hu – English.
Nyelvtanulás Budapesten – nyelvtanulasbudapesten.hu – English, Hungarian, German, and more
