Company formation and starting a business in Hungary

As a foreign citizen, you can not only start a social enterprise, but also pursue income-generating activities in the form of an individual entrepreneur. 

Social enterprise:

It is also possible to establish a company in Hungary as a foreign citizen. For some forms of socialization, this is a very quick and simple process. One of the most popular forms of company is the limited liability company (ltd.), which takes a few days to establish together with applying for a tax number and bank account number. At the same time as the company was founded, it is possible to apply for an EU tax number, so it is possible to establish economic relations within the Europian Union.

Sole proprietorship:

When starting a sole proprietorship, several criteria must be met. In order to continue the activity, it is necessary to certify some kind of qualification. If the recognition of the qualification is automatically valid in Hungary, then self-employment registration can be started. However, if the recognition of the qualification is not automatically carried out, the certificate of qualification must be naturalised, after which the individual entrepreneur’s license can be obtained. In Hungary, sole proprietorships can choose between several forms of taxation, which are adapted to the activity carried out and the expected income. Thus, in some cases, it is preferable to start a sole proprietorship than to set up a company.