Expanding a business in a foreign country is all the time full with challenges. The local habits, the cultural differences and the economic environment what also includes several other things. Such as unusual taxation rules, different market behavior, specific custom questions, etc. It’s not different neither when it comes to talk about business in Hungary. Of course, handling the above is not impossible, but if it were easy all the companies would do that.
At the same time doing business overseas is full with possibilities as well. Just think about the country- or market specific new products what you can develop. Or think about those countries where the life level is lower so while you can find highly qualified work power the employer’s costs stay low. And finally, maintaining an international business can bring you a new market, new customers. And what is more, if you are not an EU citizen, doing business in Hungary will let you enter to a market of 500 M people.
Business in Hungary is the same. There are more advantages though there are some challenges what you have to solve. In spite of some statistics, the everyday business life is not as hard that is should be based on them.
Well, Hungary is in the middle of Europe and above all has a great logistic connection to all of its neighbor countries -what are Austria, Slovakia, Ukraine, Romania, Serbia, Croatia and Slovenia- and also to West-European states.
Being member of the European Union, the Schengen Area, the OECD, the NATO and the Visegrád Fours lays the foundation of a real European business era. The administration might be felt serious but in a country where the Corporate Tax is the lowest in the EU, just 10%, the Government has to be precautious.
When starting up a business in Hungary you must assign an attorney to represent you in front of the Registry Court, to make your official documents and to countersign that the given personal data of yours is correct.
Because of the above mentioned administrative burdens especially in accountancy related fields, you must find a great accountant, or better an office who will do for you the monthly reports, the payroll calculation, will represent your company in front of the TAX Authority and will inform you about the latest news or tax optimizing possibilities.
As for the taxation, if you run a subsidiary office of an international business in Hungary, it might interest you that our country has signed the Double Taxation Treaties with about 80 countries.
Hungary has maybe the most attractive Investment Residency Bond Program in Europe. Participating the program will enable you to get a Hungarian residence permit, to start your business in the European Union and travel without limitations in the Schengen zone. What’s more, you can involve your family members with the same procedure, for the same price.
Employment. It was not accidental that we mentioned this issue above. That fact is one hundred percent true to Hungary. This is the reason why many SSCs and factories are settling their Central-European headquarter to Hungary. And in the top of this, more and more people realized the importance of speaking foreign languages. The most famous languages are English, German and French, also more and more people learn Russian and Japan. And we can still mention Chinese, Spanish and Italian.
You are specifically lucky if your activity is related to those fields what are highlighted for the Government. These sectors are:
– Automotive Industry
– Shared Service Centers
– Information and Communications
– Food industry
– Life Science
– Renewable energy
There is something what also you have to keep in mind. For Hungary it is really true: the more people you know the easier you can go on. Business networking, business relationships rock!
Do not hesitate to gain advantages from Business Management Hungary’s relationships!
From the financial side starting a business in Hungary is neither a hard nut. The capital of an LLC is just around 10 000 EUR (3 000 000 HUF). Lawyer costs and accounting cost are all reasonable, especially if we consider that in both case we can agree in a monthly flat price what includes a given amount of consultation, so you can forget about uncontrolled hourly or half-hourly consultation fees.
The employees’ salary is closely not as high than in Western-Europe -the only factor what you must take into account is that the employer’s expenses, meaning the taxes, or with different words, the “gross part” of the wages are almost the same amount than the amount of the net salary.
In case ofa retail business, based on the tourists for example what needs to be placed in the downtown at really prime locations, the monthly rent of a shop or a restaurant might be one of the most expensive part of the company’s expenses. But both this both for example renting an office are closely not as high than in other countries in the EU or in Indonesia in the Far-East.
As we mentioned tourists, every year millions of them visit to Hungary. In 2015 more than 20 million foreign tourist visited to Hungary for at least one night. The main touristic centers are the capital, Budapest, the lake Balaton and the big festivals. So shortly: if you start a business in Hungary and counting on tourists, it might be a good decision keeping in mind that some of the places are seasonal, such as the above mentioned Balaton.
Even if you expand as an already working, international business, and especially if you start a new one, being noticed is one of the most important key to success. With other words, you will have to put focus on your marketing as well. As we see, Hungary is in the blood circulation of the latest marketing trends with some really good and high quality service providers, marketing and communication agencies. Both in the SME sector and for big companies.
To the end, again, we can just encourage you to get in touch with a business management agency like Business Management Hungary. We can give you a lot of help still before you start your business in Hungary. Why not making your life easier?
How may Business Management Hungary be at your service?
|Would you like to start your business in Hungary? Would you need fully comprehensive information for launching your company? We suggest you the below service of ours:
STARTING BUSINESS IN HUNGARY →
|Would you relocate to Hungary? Because of a work or business? Maybe with your family? Would you buy Investor Residency Bonds? We suggest you the below service of ours:
IMMIGRATION IN HUNGARY →
|Do you want us to make a business plan for your company foundation? Would you need market research? Would you like to get tax consultation for you future- or existing venture? We suggest you the below service of ours:
PURE NUMBERS →
|Are you looking for a solution for a business problem related to your Hungarian firm not listed above? Give us a chance to help You!
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If you would like to work with Business Management Hungary, please contact us!