American starting a business in Hungary?

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Member since 07 April 2010

erzsebet88Member07 April 2010 18:21:39

Hi all!

I am an American who wants to come to Budapest and start a hostel. I studied at Corvinus University for a semester so I have experience living in Budapest. Does anyone have any practical experience opening a business in Hungary?

Does anyone know if I can come to Hungary and apply for my residence permit in person without having to leave the country and come back? I read a topic on the Hungarian MFA website that says this is possible but I was wondering if anyone had done this in practice.

I've read it costs 100.000 forint for registering the Articles of Association, but I have also read you can get a generic "fill in the blank" type deal for 15.000 forint? Anyone know about that?

Thanks all!

Elizabeth aka "Erzsebet"

szocske Serial expat

Member since 24 December 2009

szocskeSerial expat08 April 2010 22:28:09

839

Hi,

Tax laws and administration requirements are crazy, you'll need an accountant first. She should be able to advise you on the form of company to found ("BT", "kft", etc.) Some of your sources could be quoting the amount of capital you must initially invest to start a certain type of company, a much smaller sum is the usual cost including lawyers and accountants fees, and even smaller is the amount you have to pay if you do all your own lawyering and accounting. So there's no single price tag.
Where would you like to start the hostel BTW?

erzsebet88 Member

Member since 07 April 2010

erzsebet88Member09 April 2010 01:50:49

Thanks for your reply! I actually found a recent article regarding sole proprietorship, so if I'm reading it correctly I shouldn't need to go through the steps of incorporation. But I would probably want to have a lawyer or accountant to help me in the initial navigation.

http://www.realdeal.hu/20091110/parliam … rietorship

I'm hoping to get in the 9th district somewhere on Raday or Lonyay utca, no further south than Kinizsi utca. But I'm open to 6, 7 or 8. However, I'm not very familiar with the 8th district so that might be my last choice.

szocske Serial expat

Member since 24 December 2009

szocskeSerial expat09 April 2010 20:34:09

839

Please note the "egyeni vallalkozo" has unlimited personal liability, and there is no personal bankrupcy law in Hungary, so this could get really nasty. And I am not a lawyer or accountant and this is not legal or financial advice :-)

Are you planning to rent or buy a place?

erzsebet88 Member

Member since 07 April 2010

erzsebet88Member09 April 2010 21:37:16

This is why I'm getting a lawyer

I will rent something.

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