Success tips when doing business in Hungary in 2023
- Always be on schedule for meetings and deadlines. You must always make an appointment; walk-ins will convey informality and will not be well received;
- You must always be punctual for a business meeting; deferrals must be avoided as far as possible;
- Office attire should generally be conservative. Depending on the business context, men are often required to wear suits and women expected to wear professional business suits or professional dresses;
- Don’t be pretentious or excessively boast your accomplishments. Discussing things like income, schooling, awards, and possessions is generally considered tacky;
- You must conduct your own due diligence prior to a meeting. Also, people must be addresses by professional titles unless specifically asked otherwise;
- There is a reluctance to take risks in a Hungary company setup. You will be expected to provide substantial information before any consensus is reached;
- Hungary corporate culture has a deeply entrenched and rigid hierarchy; respect for seniors is the only way to be successful;
- Gifts should only be exchanged after the successful conclusion of negotiations; if done before, it will be perceived as bribery or flattery;
- You must inquire about the English-language proficiency of a business man beforehand. An interpreter must be arranged to increase efficiency;
- Lastly, it is important to remember that Hungary business culture revolves around cold results. Always remember to put your best foot forward.
Did you know about Hungary?
- The famous ‘Rubik’s Cube’ was invented by a famous Hungarian engineer, Erno Rubik;
- Hungary is also called the ‘Land of Thermal Water’ because there are approximately 500 hot water lakes in the country;
- Hungary is amongst the oldest countries in Europe, found in 896 AD;
- Almost 1/3rd of Hungary’s 15 million people live outside the country;
- Hungary issued bank notes of largest denomination with a face value of 1,000,000,000,000,000,000 pengo in 1946;
- The Hungary VAT rate of 27% is the highest in the word;
- Hungarians are the 3rd highest smokers in Europe;
- Other than peace, Hungarians have won Noble Prize in every other field;
- Hungarian women have a life expectancy of 74 years while men only have of 66 years;
- The population of Hungary is just 10 million;
- Hungary does not have a national color or symbol or emblem;
- Hungarians are 9th in the world in terms of number of Olympic medals won.
Frequently asked questions
I am interested in registering a company in Hungary. How many directors do I need to appoint?For company registration in Hungary, at least 1 director must be appointed.
I am interested in starting a business in Hungary. How many shareholders must my firm have?In order to register a new firm in Hungary, only 1 shareholder is required.
Must my firm have a resident director or shareholder in order to open a company in Hungary?No. It is not mandatory to have resident directors or shareholders.
What must the minimum paid up share capital be if I need to register a business in Hungary?When registering your business in Hungary, you will be required to deposit € 1,640.
I am interested in Hungary subsidiary company registration. Can Healy Consultants help me?
Yes. Our services include i) company registration ii) business license registration iii) immigration solutions iv) employment strategies v) business banking solutions and vi) office rental requirements.
Healy Consultants’ experts are Hungary company registration specialists and will assist our Clients at every step.
How long does it take to incorporate a Hungarian company?Registering a Hungarian company will take about three weeks.
How difficult is it to open a corporate bank account for a Hungarian company?For a Hungarian company, opening a corporate bank account with a reputable international bank is simple.
Am I required to visit Hungary to incorporate a company there?No. Healy Consultants can legally incorporate your Hungarian company without you needing to travel.
What is the minimum number of directors required for a Hungarian company?Under statutory regulations, a Hungarian company requires a minimum of one director.
Is a resident director required?A Hungarian company does not require a resident director.
What is the minimum number of shareholders required for a Hungarian company?A Hungarian company requires a minimum of one shareholder.
Can my company be 100% foreign-owned?Yes.
Are shareholder/director details available for public viewing?Yes.
What are the minimum capital requirements for a Hungarian company?A Hungarian Limited Liability Company requires a minimum share capital of HUF500,000 or approximately 1,800 Euros (US$2,300).
Is a Hungarian company required to submit an annual tax return and/or financial statements?A Hungarian company is obliged to submit an annual tax return and/or financial statements. The accounts have to be audited.
What are the tax implications of a Hungarian Company formation?A Hungarian company is liable to pay a corporation tax of 10% to 19%. Since 2010, the solidarity tax of 4% has been removed.
Does a Hungarian company benefit from double taxation treaties?Hungary has signed double taxation treaties with more than 60 countries. Countries included are Australia, Singapore, India, France and the USA.