Hungary as the member of the European Union is also the member of the world’s largest single market. Nowadays Hungary has become not only one of the most popular trading centers of the Central-Eastern European region but also one of the central points for those EU investments that come outside from the European Union. All these are promoted by the fact that the Hungarian commercial banks and the financial system belong to the forefront of the region. In recent years the process of establishing a company in Hungary has been further simplified, so today technically one can establish a company even during a day.
The advantages of establishing a company in Hungary:
The most common forms of companies in Hungary are: limited liability company (LLC) and private limited company. However each of them has its own advantages and disadvantages. One may ask a question concerning what kind of Hungarian company should be chosen: a limited one or a private limited one. The answer is simple: limited liability company because its establishment and operation is less bureaucratic thus it is cheaper than a joint stock company. In case of a Hungarian limited company, the minimum share capital is much higher, the shares should be issued, a board of directors and a supervisory board should be operated. These problems do not occur at a Hungarian limited liability company. According to the regulations in force while establishing a company the proportion of mandatory cash inflows ceased and the stock capital may consist entirely of non-cash contributions (real estate, movable property). Its advantages:
However in case of a private limited company the shareholders must have a minimum capital of 5 million for the company.
It is worth to mention that perhaps one of the most important points for our business while establishing it is the market research. That is, the preliminary examination of the product to be produced and the marketability of the service to be realized is the appropriate means of avoiding failure, the appearance of the non-recoverable costs. It is not enough to know the customer and his/her needs, it is also necessary to follow the competitors. The product of the business should be compared with the products of the competitor in order to accurately determine and explain why the product is better than the other.
Hungary has concluded a number of international tax conventions which also ensure an optimal investment outside of the EU.