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Open Business in Hungary

Open a Business in Hungary

Updated on Wednesday 24th June 2015

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How easy is it to set up a business in Hungary?

The process of setting up a company in Hungary usually takes five working days if all the documents are properly submitted at the right authorities. The process is usually simplified by the fact that the company must hire a lawyer in order to take care of all the procedures. The newly established company has to pay only a half of the share capital at registration which is very advantageous for the entities without the entire funds for starting the business. The registration in the Commercial Register is made very simple with the help of the electronic system.
The only step that has to be performed and it’s not online is the registration for the social security which is made in just one day from the depositing the correct documents.

How easy is to hire personnel in Hungary?
 
The Hungarian young workforce is highly trained in the many Regional Knowledge Centers of Universities where many students comes from all European Union countries. That’s the reason why many of the courses are in English so this makes the graduated suitable for working in foreign owned companies. The experience can also be gained in the R&D centers of the Hungarian subsidiaries of multinational companies opened in here. Because of the EU membership, the employees are free to work in any EU countries and the opposite is also valid, the EU workers can find suitable jobs here. The companies are often using the help of recruitment agencies in order to find suitable candidates for the vacant places or publish announcements regarding these vacancies in local newspapers and job related websites. 
 
What are the main points of interest for foreign investors?
 
The main points of interests for the foreign investors are represented by the private services, which accounts around two thirds of the GDP. The private service is represented by the trade, finance, tourism. The exports of telecommunication, automotive industry, and computer technology are highly developed, while the exports of agriculture products are not so successful even though various incentives were granted on those.
 
The agriculture is also a developed segment of the economy due to the favorable climate conditions but again, not so developed in order to export goods.
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What are the advantages of a holding company in Hungary?
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The advantages of the Holding companies in Hungary is that the tax system specifies that there are no tax on dividends received from EU subsidiaries (or from other subsidiaries located in countries which have signed  double tax treaties with Hungary) and  no dividend tax on outgoing dividends.  Also the capital gains provided by the sale of the “declared participation” are 100% exempted from company tax in the Hungarian holding company. According to the provisions of the law, all the profits realized from the subsidiaries sellout can be exempted of corporate tax on income, and can be forwarded free of any withholding taxes to the owner of the Hungarian holding.
 
 
 
 
 
 
 

 

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