What are the most popular business areas in Hungary?
In Hungary, mechanical engineering, agriculture, tourism, the electronic and automotive industries are actively developing. Transport companies are especially popular. The Hungarian markets are mainly aimed at export to Europe.
Perspectives for foreigners
By purchasing or registering a company in Hungary, you get the opportunity to legally transfer your capital to European banks and work in the European Union market.
Owning a business in Hungary is the basis of obtaining a residence permit in Hungary, as well as a permanent residence and, in the future, citizenship. It is called business immigration to Hungary.
Since Hungary is a country of the European Union, then you get the opportunities that are provided for all residents of the European Union.
Types of businesses that are registered in Hungary
The Hungarian Companies Law provides for several options for company forms:
- Private Limited Liability Company;
- Open Joint Stock Limited Liability Company;
- Unlimited Partnership.
- Limited Liability Partnership.
The first option is the most popular. It is practically the same as a limited liability company (LLC).
How to register a company in Hungary?
Non-residents can register their company in Hungary only through a Hungarian lawyer. The preparation of documents is carried out exclusively through a lawyer, who is responsible not only for the correctness of the documents but also for the accuracy of the data provided.
The preparation of documents is carried out exclusively through a lawyer, who is responsible not only for the correctness of the documents but also for the accuracy of the data provided.
Information to be provided to a lawyer
- The name of the future company and types of activities;
- Passport data of the founders;
- Founders’ permanent residence addresses;
- If there are several founders – the number of contributions to the authorized capital of the company;
- The legal address of the future company.
Preparation for registration of a company in Hungary
After the received data, the lawyer prepares a package of documents:
- company charter;
- samples of signatures;
- power of attorney;
- application to the registration chamber;
- copies of documents, etc.
A guarantee from a Hungarian citizen may be required. It will also be necessary to pay a state fee and make a payment to the registration chamber.
Permission to register a company in Hungary
Based on a package of documents prepared by a lawyer and a bank statement, permission is issued to register a company. Based on this permission, the company can start its activities, although the final decision on registration is made later.
Features of the company in Hungary
If you plan to become an EU resident by setting up a business in Hungary, your company must be real, have a profit, and pay taxes. A fictitious company does not provide solid reasons for obtaining or extending a residence permit in Hungary.
Documents for obtaining a residence permit for the owner of the enterprise
To apply for a residence permit, you first need to obtain an entry visa type “C” or “D”. To do this, you must submit the following documents to the embassy:
- International passport;
- Two photographs measuring 3.5×4.5 cm;
- Copies of the internal passport;
- Certificate of no criminal record;
- A medical policy is valid for the entire period of stay in the territory of the Schengen countries.
Obtaining Hungarian visas “C” or “D”
After submitting documents, at the embassy you will receive:
- Entry visa type “C” is given for 90 days. The designated purpose is business, tourism, and study. Such a visa does not allow employment. With this visa and an application for a residence permit, you can contact the immigration committee;
- Type D entry visa is long-term. It does not require a prompt appeal to the immigration committee and allows multiple entry and exit from the country during the period of validity.
Obtaining a residence permit in Hungary
Upon arrival in the country, you will need to provide to the immigration committee:
- A decision on company registration, statutory documents, lease documents;
- Confirmation that the company is registered with the tax authorities;
- Confirmation of the legal address of the company;
- Your passport, two photographs, and a questionnaire completed at the consulate;
- Confirmation of the availability of living space (ownership or rental, from 18 m2 per person);
- Bank statement confirming the availability of funds for an annual residence in the country (calculated based on the minimum wage).
Terms of obtaining a residence permit in Hungary
First, a residence permit in Hungary is issued for one year. In the future, it must be renewed. You must apply for the extension of the Hungarian residence permit no later than 15 days before the expiration of the previous one.
After 3 years of annual renewal of the residence permit, you can submit documents for obtaining permanent residence in Hungary. After another 5 years (just 8 years later), you are eligible to apply for Hungarian citizenship.