Investment in Hungary

Setting up a company in Hungary follows the same legal system that is currently used in EU countries.

Foreign investors can invest in 4 different types of enterprises: KKT General Partnership BT Limited Partnership RT Joint Stock Company KFT Limited Company

KKT A General Partnership All the partners bear unlimited liability in all that concerns joint undertakings. BT A Limited Partnership At least one of the general partners has unlimited liability for the joint obligation, the other partners bear only limited liability (a partnership is not allowed to be a partner with unlimited liability in any other partnership). RT A Joint Stock Company A Joint Stock Company may be private or public and is traded on the Stock Exchange. It may have a single shareholder. Its board of directors must have at least 3 members but no more than 11. The shareholders in a private joint stock company may appoint a CEO instead of a board of directors. KFT A Limited Company As distinct from an RT company, a company of the KFT category may not raise capital from the public. The shareholders have limited liability. The minimum equity must be in excess of HUF 3 million.

Setting up a business in Hungary As a result of the global economic crisis, Hungary's economy has been in a recession. The government secured an International Monetary Fund loan in November 2008 to prevent speculators making a run on the Forint, the Hungarian currency.

Company formation Step One: Hire a lawyer to represent the company and prepare the legal documents. Step Two: Pay at least 50 % of the subscribed capital into the company's bank account. Step Three: Register with the Registration Court and obtain a certificate. Step Four: Register for social security.

When you register a company in Hungary, you should provide the following details: evidence of your trade licence your documents of incorporation the company name and the address of its registered office(s) the nature of the company's activities form of incorporation approval for foreign workers

You must also register with the following associations : the Central Office of Statistics National Income Tax Authority Regional Income Tax Authority the (Regional) Court of Registration the Institute of National Insurance Your registered company in Hungary immediately becomes a member of the local Chamber of Commerce.

Permits and licences According to current laws, no special permit is required to establish a business. But there are permits for specific work, especially in construction and licences for trading.

Hungary is a land of opportunities for business people Investors are welcome

Income Taxes and Tax Laws Hungary operates a sliding scale taxation system (the higher the income, the higher the rate of tax payable). The tax rates for an individual ranged from 18% to 36%. There are reduced tax rates for certain income earners. Corporate tax in Hungary is 16%. There is an additional 4% solidarity tax. Corporate tax for incomes up to HUF 50 million is 10%. The tax year in Hungary is the calendar year.

Thank you for your attention! On behalf of the Hungarian project team: Bor Dániel Fülöp Brigitta Kajdi Adrián Szóllás Glória Pápai Gazdasági Szakképző Iskola 2010