Establishing a business in Hungary
Hungary is member of European Union with its welcoming economy for the foreign investors, the country located in Central Europe has stable economic structure and legal framework in accordance with EU.
In order to set up a Limited Liability Company (Kft.) in Hungary minimum share capital is 3.000.000 HUF and the company can be established by one shareholder and director; the liability of the shareholders is limited to their contribution. Foreigners can be shareholder and director at limited company in Hungary. KFT is the most preferred company type with its easy structure fort he foreigner investors.
Joint Stock Company Rt. can be set up by one shareholder (foreginers can be shareholder) and minimum 5.000.000 HUF of share capital is reqiured to open Rt. İn Hungary. Joint Stock Companies can be private or public; in case of being public company it is listed at the Stock Exchange. The liability of the shareholders are limited by their shares at the company.
Representative and Branch Office in HungaryForeign companies can open its branch offices in Hungry as legal entity and can carry out commercial activities. Also foreign companies can open the representative (liaison offices) in Hungary but representative offices are not allowed to conduct commercial activities, they can only promote and introduce their parent companies.
Taxation in Hungary
Corporate income tax
Corporate income tax rate is reduced to 9% in 2017
VAT Value Added Tax in Hungary
Standart VAT are is 27% in Hungary and reduced VAT rates are 5% and 18%.