Establish a Subsidiary in Hungary

A presentation brought to you by our Specialists in Company Incorporation in Hungary

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Reasons for Establishing a Subsidiary in Hungary

• Subsidiaries are forms of legal entities opened by foreign companies in order to perform commercial activities.

• A series of treaties signed by Hungary that have as result the exemption or the minimization of withholding taxes are making the foreign companies to choose this location to open subsidiaries.

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Legislation for Foreign Investments in Hungary >>

• Hungary has adopted the EU Parent-Subsidiary Directive.

• This regulation allows the exemption from withholding tax on dividends paid to a company based in an EU country.

• If you need more information about the EU Parent-Subsidiary Directive, you may contact our company incorporation specialists in Hungary.

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• If the company is not situated in the EU, it can still have privileges granted by the many double tax treaties signed by Hungary all over the years (more than 60).

• These treaties provide no corporate taxes or their refund in Hungary and lower or exempt withholding taxes on dividends, interests and royalties paid to a treaty country.

>> Legislation for Foreign Investments in Hungary

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Characteristics of Subsidiaries in Hungary >>

• A subsidiary opened in Hungary may take many forms but the most popular are the limited liability companies.

• A public limited liability company has a minimum share capital of 20 millions HUF, in cash or kind.

• The members of this company type are liable for the company’s obligation in the limit of their contribution to the capital. 

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>> Characteristics of Subsidiaries in Hungary

• A private limited liability established in Hungary is based on a share capital of at least 5 millions HUF.

• Just like in the case of the previous described company, the liability of its members it’s limited by the contribution to the capital.

• The main difference is that the shares of this type of company cannot be transferred to the public.

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The Registration of a Subsidiary in Hungary >>

• The process of registration of a subsidiary in Hungary begins with hiring a lawyer to prepare the company’s foundation deeds and articles of association.

• The decision of opening a subsidiary provided by the parent company must also be seen by the attorney.

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>> The Registration of a Subsidiary in Hungary

• At least half of the minimum share capital must be deposited in a bank account and a certificate of deposit must be released.

• The registration of a Hungarian subsidiary continues with the electronically submission of the company’s documents with the Registration Court.

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Registering for the Social Security in Hungary

• The last step of opening a subsidiary in Hungary is registering for the social security.

• The process of registration is one of the simplest in Europe, especially because of the recently implemented electronic system.

• In maximum 5 days from depositing the documents, the Hungarian company may pursue with the economic activities.

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Company Formation Services in Hungary

• Our company formation agents in Hungary can help you establish any type of company in this country.

• Whether you want to set up a new company in Hungary or to develop your business here, our local team of experts is at your disposal.

• Please contact our company formation specialists for more information regarding Hungarian subsidiaries.

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Thank you for your attention!

• Please contact us for more information at:

  (+44)203-287 0408

office@lawyershungary.com

http://www.companyincorporationhungary.com/