Healy Consultants successfully completes Hungarian business set up without Client travel

Since 2003, Healy Consultants Group helps multi-national Clients with Hungary business set up including i) company incorporation and ii) multi-currency corporate bank account opening and iii) accounting and tax support and iv) physical office premises and v) employee recruitment and visas.

In this case our USA client is a global distributor of specialised telecommunication and computer equipment from leading EU-based manufacturers. Our Client started operations in the USA in 2013. To assist with logistics between Europe and Asia, our Client needed to establish a supporting independent company in Hungary which would manage the supply chain from wholesalers based in Europe to the Client’s Asian distribution centre, based in Singapore.

  • Engagement planning

    • Our Senior Client Engagements Manager, Ms. Evgeniya, convened a detailed video discussion with our Client to i) understand their reasons for setting up the business in Hungary and ii) the intended structure for the new company and iii) what services they required from our Firm.
    • The Client confirmed that they did not intend to immediately have any shareholders or directors on the ground in Hungary. Furthermore, because of the Covid pandemic, the shareholders and directors were unable to travel to Hungary to complete bank account opening. Our Client therefore wanted to know if it would be possible to obtain a corporate bank account in Hungary for a non-resident bank signatory without travel.
    • Evgeniya proposed that our Client settle a retainer fee. This fee covers the time taken by our Firm to i) prepare a detailed business plan for our Client’s intended Hungarian company including a) revenue projections b) market analysis c) target clients and d) staffing and resources and ii) contact a number of top Hungarian banks to see if they would be willing to propose a non-travel bank account opening solution for our Client, given the Covid situation.
    • After our Client confirmed that they were interested in proceeding with the retainer route to search for a bank willing to provide a non-travel bank account opening solution, Evgeniya prepared and emailed our Client the engagement advancement proposal which included a formal invoice for the retainer fee.
    • Our Client promptly settled the retainer fee invoice and provided the requisite due diligence documents. Thereafter, our team prepared a quality draft business plan which was sent to our Client for review and inputs.
  • Non-travel bank account opening solution research

    • Our Client reviewed the business plan and returned it to Evgeniya with minor edits and approval to proceed.
    • Evgeniya finalised the business plan and immediately started contacting top-tier banks in Hungary on our Client’s behalf.
    • After contacting a number of banks and negotiating the possibility of non-travel corporate bank account opening solutions with them, Evgeniya identified a bank that was willing to provide a remote account opening route for the Client.
    • Evgeniya proceeded to have detailed discussions with the bank regarding the Client’s intended business in order to i) secure in-principle account approval and ii) to understand the account opening procedures and requirements to be completed.
    • Upon receiving A$ written in-principle approval from the bank, our Client confirmed their interest to take the next steps and establish the business. Evgeniya sent our Client a second invoice for company registration, for our Client to settle.
  • Hungary company incorporation

    • Once the next instalment was settled, our team informed our Client of the need for attested and notarized documents from the proposed two shareholders of the new Hungarian company.
    • The Client confirmed that one of the shareholders would be unable to provide the necessary attested documents. As a result, we recommended removing this shareholder from the corporate structure, so as not to delay the incorporation.
    • Upon deliberating the suggested changes for a few weeks, the Client agreed and decided to proceed with a sole shareholder structure.
    • Thereafter, Healy Consultants Group and provided our client with i) a detailed engagement project plan (which enables the Client to visualise the engagement, with estimated timelines and potential problems and solutions) ii) a power of attorney and iii) a list of documents and attestation instructions required from our Client to complete Hungary company incorporation.
    • Our Client signed the power of attorney and had it, along with the required due diligence documents, duly notarised and attested as required. Scans of these documents were then shared with Healy Consultants Group for review. After confirmation that all was in order, our Client couriered the original signed and attested documents to our team in Hungary.
    • Within 2 weeks of receiving the original signed and attested documents in Hungary, Healy Consultants Group i) submitted the complete company incorporation application to the Hungarian Court of Registry and ii) provided our Client with company incorporation documents such as the memorandum and articles of incorporation and shareholders registry and iii) and tax registration documents.
  • Hungary corporate bank account opening

    • Immediately after Healy Consultants Group received the company registration numbers, the same was submitted to the bank to advance corporate bank account opening procedures.
    • During this time, there were internal process overhauls and restructuring changes being made at the bank and as a result, the relationship manager assigned to our Client’s account was changed. Consequently, the review process took six weeks before the bank was ready to take the next steps.
    • Upon a new relationship manager being assigned, Healy Consultants Group co-ordinated a KYC video call between our Client and the bank. Following the call, the bank outlined a number of account opening forms to be completed.
    • Healy Consultants Group co-ordinated with the bank and, on behalf of our client, accurately pre-filled the account opening forms which were reviewed and approved by the bank before being sent to our Client for signature and attestation.
    • Our Client returned scans of the duly signed and attested bank account opening forms which Healy Consultants Group sent to the bank for their final confirmation that all was in order and could be couriered.
    • The bank reverted with requests for a few additional supporting documents during the review process. Healy Consultants Group was able to successfully negotiate a waiver on a few of the requested documents. Thereafter, the bank confirmed that all was in order to be couriered.
    • At this time, our client had updated their passport document and consequently, Healy Consultants Group had to amend the account opening forms to reflect the new passport details which our Client had to sign and attest. Upon receiving scans of the updated signed and attested documents, we confirmed with the bank that they were acceptable and could be couriered.
    • Once the bank confirmed, Healy Consultants Group prepared a complete checklist of documents the Client was to courier to the bank in Hungary.
    • The bank confirmed receipt of the original signed and attested bank account opening application forms and supporting due diligence documents required to advance account opening. At this time, the bank reverted requesting our Client sign a FATCA declaration form as well as sign a declaration confirming they were doing no work with sanctioned countries.
    • Over the next few weeks, the bank reviewed all documents and performed their compliance checks on the client. The account was finally opened in December 2021. The bank directly emailed the Client the account and online banking details.
    • In total, the non-travel bank account opening solution took seven months to complete.
  • Engagement completion

    • Following engagement completion, Healy Consultants Group emailed our client the full digital company kit including i) extract of company registration ii) the approved M&AA and iii) signed power of attorneys used for incorporation.
    • Healy Consultants Group also provided our Client with a draft sales invoice, which is a template document highlighting all the relevant information the Hungarian government expects to see on invoices.
    • For staff learning purposes, we had also requested our Client to provide feedback:
    • By leaving an online review by logging in on Google or on Facebook, LinkedIn and Trustpilot.
    • Thereafter, I prepared this case study and recorded a video to help our multinational Clients walk through the process of Hungarian business set up.
    • Annually, our Accounting & Tax Department will assist our Client timely, accurately and completely fulfil the Hungarian company’s annual statutory obligations.

Contact us

For additional information on our company incorporation services in Hungary, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Senior Manager, Sales and Business Development
  • Get in touch