We wrote in the previous page that we are coming with an example. And here is the example:
In 2015 the country-wide average net salary was around net 160 000 HUF in Hungary. This looks competitive, still it is if we are counting with net 200 000 HUF what is more relevant in the capital. So, net 200 000 HUF is going to the employee. But how much does this cost to you, as an employer?
The gross amount in this case is 300 752 HUF. Plus you have to add 28,5% as health and training contributions. And suddenly we arrived to 386 466 HUF, what is almost the double of the original, net amount.
So summarizing the above, please note that when you are about company registration in Hungary and calculating, planning the salaries, it’s you, the employer who has to pay the taxes and contributions to the state.
Going on with our points to consider, let’s talk a little bit about the subcontractors. Right after you signed the company registration in Hungary, you already can start working with your company. This might mean both contracting with other companies and starting building your background, for example configuring your shop or contracting with your subcontractors.
To be honest, we have had plenty of bad experience with Hungarian subcontractors. It took a lot of time to find good ones in many fields. And we still can not state that we found the best in every fields. (We are working on this continuously.) What it means that we had bad experience?
Some of them are lazy. We hear it many times from Hungarian entrepreneurs that they do not have a job, they do not have assignments. But, when it comes to do something, for example in the weekend, they are crying that they do not want to work in the weekend. “Because it’s weekend.” Sounds weird? Definitely.
Some of them makes his prices as he would like to do his luck on one job. You know what we mean.
Responsibility: many times it happened that one of them made a mistake and when we told him to fix it, he started to point at someone else or one of his subcontractors. It takes some practice to find the tone with them without making unnecessary enemies for yourself.
When it comes to company registration in Hungary you will realize very soon that even if your chosen lawyer speaks English, maybe your mother language, your accountant will speak probably just in English, just like the employees in the banks. And after … after, when you would start handling official matters, the officers will hardly speak foreign languages. Just like the above mentioned subcontractors.
Plus, and this might be the most difficult to understand and accept, there are rules made by the local governments in each district, what makes business life a little more complicated than it should be. For example the enabled opening hours of a shop. Or that simple fact how they define a general Act. We will never forget that officer in the city hall in one of the districts who did not countersigned one of our Client’s “customer’s book” because by the Act it is obligated in shops. And he was running kiosks. Everywhere they got it countersigned. Here they didn’t. (The best solution came from our corporate lawyer. To comply with the rules of the Hungarian Authority for Consumer Protection we made the document countersigned by the CEO of the Client’s company.)
So as it’s easy to see that among many benefits of company registration in Hungary, it really worth to assign a local specialist to represent your needs and interest. Even if it’s not Business Management Hungary who you will choose. And in parallel we strongly recommend to start to adapt to the local habits and possibilities as soon as possible. The earlier your get acclimatized to the “local way”, the earlier you find the balance between what you can reach and what you can not, the earlier you can start enjoying the advantages of a Hungarian company.
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:
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|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!