Hungary is located in central Europe and offers great access to the over 500 million-strong common market. However, it can be challenging to start a business in another country without the support of local people. Hungary’s ideal location has helped it become a strong backbone for production, services and consumption. It is a great place for expanding firms that want to increase their presence in Europe’s largest market. There are approximately 250 million inhabitants within 1000 kilometers of Hungary. More than 500 million EU markets can also easily be reached.
Foreign companies can find it difficult to navigate Hungarian business areas, despite their natural appeal. According to the World Bank and International Finance Corporation (IFC), Hungary is ranked among the top 100 countries worldwide for electricity generation find more, protecting investors, and paying taxes. It is important to have local knowledge to navigate these difficult areas. There are few obstacles to company formation in Hungary.
Start a business
When establishing a legal entity, companies should have an attorney representing them. This will produce all necessary legal documents, as well as represent and produce the company’s documents. A portion of the registration fee must be paid to the bank account that was indicated at registration. Before the establishment of the public safety plan can be established, applications must be made to the registry court.
Obtaining Building Permits
A building permit is issued in 102 days and requires 26 travel procedures. Before companies can receive a statement of the municipal planning committee or a tax letter, they must pass several government departments. Once all procedures are completed, you will need to apply for a residence permit.
The World Bank and IFC placed Hungary among the top 50 countries for easy connectivity. This took a total 252 days. Inspections, work and registration are all done by ELMU Halozati Kft. They will then install the meter and connect the final line after signing the network usage agreement.
Register your property
Registering a place in a company is a job that requires you to stay there for a minimum of two weeks. You should consult a lawyer after you have completed the program.
Hungary’s access to credit is slightly less than the legal rights index. Private institutions make up less than 20% of adult population, while there is no public registry.
IFC and the World Bank rank Hungary at 128th for investor protection, due to its poor disclosure and debt repayment.
On average, taxes take 27 hours of work. Most companies don’t know that local business taxes, tuition fees, rehabilitation fees and R&D taxes exist.
Cross-border trade has a low cost but takes a lot of time. Exports take on average 17 days and deliver in 19 days. This reduces trade flows between the countries.
Stabilizing Contracts and Debt Restructuring
The process of completing the contracts takes about a year. 35 procedures must be completed before a decision can be made. It can take as long as two years to resolve court cases. The rate of retaliation in court cases is lower than the OECD process.
If you are interested in doing business in Hungary, it is important to have a representative from the country. They can assist you in setting up business, making appointments, translating and being a great source of cultural information.