Hungary Company Formation


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FEES SCHEDULE

Year 1 incorporation US$8,100 *

Annual fees from Year 2 US$4,700 *

Nominee director fee
US$2,600 **

Company de-registration
US$3,450

* Includes government licence fees, registered office for 12 months, Company secretary fees for 12 months

**Excludes US$2,100 refundable deposit.

Click on the logo above to review sample PDF invoice

If properly structured, Hungary company formation is a tax-efficient corporate solution for international entrepreneurs, especially for those operating in the European Union (EU). The following information will help you determine whether Hungary company formation is the optimum corporate solution to meet your international business objectives:

Advantages of Hungary Company Formation

Hungary has been a member of the European Union (EU) since 2004 and has a stable economic and political system.

Hungary company formation is not perceived as an offshore corporate structure in a tax haven. Forming a company in Hungary has advantageous tax incentives including low, or no, tax on corporate capital gains and dividends at company level.

If properly structured, Hungary company incorporation is a tax-efficient solution. Corporate tax ranges between 10% and 19%. Since 2010, the solidarity tax of 4% has been removed.

Dividends paid to any resident or non-resident person are legally tax-free.

Paid royalties are considered expenditures and can be deducted from Hungary corporate profits. Withholding tax is 0%.

Hungary can be an efficient jurisdiction for formation of a holding company. Corporate income tax is relatively low compared to other European Union jurisdictions and there are the key incentives of no tax inbound and outbound dividends, foreign or domestic.

Only one shareholder and one director is required to fulfill Hungary company formation requirements.

Corporate shareholders are permitted with Hungary company formation.

Investors considering Hungary company formation can take advantage of the double taxation treaties the country has signed with other states. For more information kindly visit the World Wide Tax website for more information.

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Details of the beneficial owner of the company are not available for public viewing.

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Following Hungary company formation, the entity can be run from anywhere in the world.

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It is easy to open global corporate bank accounts to support Hungary company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

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A Hungary company can be fully owned and controlled by international directors and shareholders. There is no requirement to appoint local shareholders and directors.

Disadvantages of Hungary Company Formation

A Hungarian company is subject to 16% corporate profits tax on its worldwide income. Hungary is negatively ranked as the world's 51st freest economy in the Heritage Foundation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

The minimum capital required for Hungary company formation, based on a Limited Liability Company, is HUF500,000 or approximately 1,800 Euros (US$2,300).

The entity is required to prepare an annual report following Hungary company incorporation.

A Hungarian company is required to register for Value Added Tax (VAT).

Hungary is Negatively ranked as the 54th least corrupt country in the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Hungary is also ranked poorly on the World Economic Forum's Global Competitiveness Report 2010-2011, at a low 52nd position.

Contact Us

For more information on Hungary company formation, email email@healyconsultants.com or call us at (+65) 6735 0120.

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