Doing business in Hungary

Hi

I arrived here with my wife 5 years ago and registered a company quite easily. I employed a good set of lawyers who can muster 3 or 4 English speaking lawyers. The whole process was about 1 month from start to finish. The main thing you have to watch out for is the registration numbers that the company has to have to trade. Each trade or profession or product you wish to trade in or sell has a specific number. Each number costs to register and it is registered with a court of law when the company is registered. If you wish to add numbers later then the cost is higher as you have to go back to court again. All companies have a registration number and a tax number and these have to be on all invoices printed or written. Invoice books for small companies have to be bought from a stationer and the book is logged to the company and you have to have the registration paper with you when you buy the invoice book. The invoice numbers are logged with the tax authorities as well. I have a Bt company and I have to employ accountants to do the books.

Company profit tax is 10% now, which is very favourable and personal tax is 16%. A local tax is applicable of around 1-2% of turnover depending upon where you have the company registered.

In the end it all depends upon the goods or services you wish to supply as to what company you would register. A good lawyer will give you the advice you need.

Thanks markru !

If i am comming with tourism visa , can i make company and open shop and apply for stay permit that now i have company and shop and rent flat so i invest money or it dont work ?  Also my friend havr kft company can he hire me as i am comming to work in his shop ? Which is better ?

Either way you have to pay taxes on minimum wage I think. Maybe less if the existing KFT can employ you part time, and that's enough to get the permit.

To the original question:
Hunagry needs foreign investors badly!
Please excuse all the dumb laws, unhelpful bureaucrats, and flaming hoops you'll have to jump through. We'll try to help on this forum as much as we can to even it out.

Thanks for helping , other thing do you know the steps he do to employee me part or full time ?!?

Hello.
Here are a few answers to your questions:
Foreign investors are welcome in Hungary.
This is a legal court process so you need to contact a law firm they will clear you out with everything and do the paperwork as well.
The procedure differs a bit depending you are an individual person wanting to estabish a company or you are a company wanting to open on the Hungarian market.
The corporate tax rate in Hungary 19% of the positive tax base, and for the sum not exceeding 500 million forint is 10%.
The recruitmet in Hungary it's easy, because Hungary has a lot of good professioanals, experts.

If you have any other question go ahead...

Oh IMPORTANT:
No matter what contact a law firm, since many laws are constantly changing, and they are up to date. For example the corporate tax rate had just changed now in March. :-(

Dont forget that Hungary has 27% VAT which is highest in EU. Hungary like the OP said, Hungary brought new regulations in Jan 2012 and many of them are unpleasant. I would definitely say, it is expensive to run a company, compared to running costs and initial costs.