Set-up Your Company in Hungary
Before setting up a company, there are many considerations that an investor needs to make before the setup, among which Hungarian business regulations, opportunities, and registration process specifications are the most crucial ones.
The complexity of the company registration in Hungary depends upon the type of company you choose. While incorporating a Hungarian company with NNRoad, we strive to provide you with all the support required to set up and get the company running. We ensure a smooth setup for your company with the legal assistance of our experienced team in full compliance with the local regulations.
Business entities you can open in Hungary
1) General Partnership
There are no capital requirements for the initial capital of a General Partnership. Establishing a General Partnership is free of registration fees and publication charges.
2) Limited Partnership
In this kind of partnership, there must be at least one general partner and one limited partner. General partners are jointly and severally liable for the limited partnership obligations that are not covered by its assets. Limited partnerships have no minimum capital requirements and must be established by at least two members, one of which manages and represents the partnership and has unlimited liability, and one who is not liable personally for the partnership's obligations.
3) Limited Liability Company
This structure is founded with an initial capital consisting of capital contributions of a pre-determined value. The obligation of the members is limited to the provision of their initial capital contribution, and of other contributions set out in the memorandum of association. The initial capital must be at least HUF3 million.
4) Private Company Limited by Shares
These structures are founded with a share capital consisting of shares of a pre-determined number and nominal value. The shareholders' obligations are limited to the provision of the nominal value or accounting value of their shares.
5) Public Company Limited by Shares
This structure is similar to the private company limited by shares, and the most significant difference between the two corporate forms is that the shares of this structure are listed on a stock exchange.
Our Company Formation Service Includes:
- Confirm the selection of a business entity type.
- Assist with the name or business name of the entity.
- Guiding and preparing legal documents like incorporation forms, and other related incorporating documents if needed.
- Assist with bank account opening.
- Assist with the mandatory registrations like local and central tax authorities etc. and other requirements.
- Assist with registration with Trade Registry for social security and obtaining the certificate.
- Support with after company setup services.
- Assist with other licenses, if required by Law.
PEO/Employer of Record in Hungary
Hire employees in Hungary while NNRoad handles all employer liabilities. No local entity needed.
It is very crucial to know the working of the country’s employment market when it comes to hiring candidates for your new Hungarian business as the market is regulated and governed by the local Labor regulations protecting the rights of the employees.
With NNRoad’s professional and experienced team; we can make the hiring of candidates easy for you without the need for you to have a legal establishment. This is one of the most cost-effective and easiest ways to enter the market. Our dedicated team is updated and closely understands the local laws and procedures to be followed for new employment.
With our EOR service, we make sure that the employees are hired in full compliance with the regulations of the local authorities.
NNRoad's Employer of Record (EOR) Service in Hungary Includes:
- Engaging employees through local labor contracts including contract administration, engagement, extension termination, and conversion to a permanent hire.
- On-boarding and off-boarding employees following local labor law practice.
- Registration of employees with the social security board and with the tax office.
- Complete payroll solution and mandatory benefit administration.
- Payments of local taxes and local social contributions to the relevant authorities.
- Payment management, including invoicing customers/clients and salary payments.
- Support with Visa and Work permit applications.
Demanding statutory requirements which are different in every country and constantly altering legislation makes payroll an extremely challenging task, especially in Hungary where deductions for Income tax and social security are done through the Payroll and there are procedures to be followed by the employers for every new hire and exit employee.
This is a tedious task for any company to handle as it consumes a large part of time and resources from the enterprise which can be utilized in other profit developing activities of the business.
Choosing NNRoad will give you the time and resources to focus on other business developing activities as we will provide you with the updated and compliant solutions of the highest standards.
- Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules.
- Registering all local employees with the social security board, if required.
- Calculation of gross salary, salary deductions, such as withholding taxes, social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/bonus, allowance, etc. if applicable.
- Preparation of income statements for the tax office and the Social security administration.
- Pro-rata calculation for people who join/resign.
- The monthly issue of electronic pay-slips.
- Prepare annual payroll related reconciliation report.
Tax and Accounting in Hungary has a certain set of requirements that needs to be fulfilled by the companies which include filling of the statutory financial statements, Corporate law & tax filing requirements.
Handling accounts can be one single biggest cost and compliance burden. NNRoad’s team of dedicated accountants will assist you to manage your local statutory accounting obligations while assuring compliance with a vast range of Hungarian regulations and standard reporting requirements.
- Full set accounting services in compliance with the Principles set out by the Hungarian and international financial reporting standards.
- Full set of International Tax Advisory services including planning, administration, preparation, registration, etc.
- Keeping up the accounting policy and comprehensive accounting service including preparation of accounting reports, tax statements, annual reports, etc.
- Consolidation accounting and preparation of group financial statements on a quarterly and annual basis.