As you already know well we separated 3 different aspects what is a must to consider by all means when it comes to talking about forming a company in Hungary:
– technical facts
– general considerations
Now we are going to look on the last aspect what we name general considerations. The two earlier aspects did not really show why forming a company in Hungary would be so different than anywhere else. In this point we will focus on these differences.
First things first, accounting rules. At Business Management Hungary we agree to pay the bookkeeper to do his job, we would not like to become accountants neither. But, and this is a big but, a CEO’s responsibility does not stop by giving the invoices to him or to tell him to make the yearly report. During the financial year plenty of situations might/will happen what is not easy to understand for the first look. For example as a company under the VAT jurisdiction you can claim back the VAT of your expenses related to your company. But not in all the cases. Or, there will be expenses what does not include VAT.
Sometimes the calculation of the local business tax advance payment comes up against a difficulty.
When you are about to calculate your local business tax or corporate tax, if you deduct just the expenses and the purchasing price of your goods to sell, you will not get an exact result. For example you have to calculate with depreciation. And generally we can say, there are plenty of modifying factors what may have effect on your final numbers.
You have a lot of VAT free expenses? Do not get surprised if in the end you will pay a huge amount of VAT after your local sales, you still have money in your main cashier or on your bank account but still your yearly result is in minus. Or, the opposite matter when you really make losses but you still have to pay taxes (from what?, you could ask).
So we can suggest you two things. First is to hire a financial expert who will be at your service all day, who has to focus just on your company’s needs and yes, who sometimes might check the accountant as well. The second is to not to save (too much) on the accountant’s fee. Make him motivated to be proactive with you. We are human beings, just like him. We can make mistakes. Especially those who are not motivated enough. If you do not feel as a VIP person when you talk to him: it’s time to change. A good and creative accountant is a very-very important part of your business.
We realized that businessmen from many parts of the World talk about salary in a total amount. With different words, when they offer a certain amount of money to an employee they mean the total cost of this amount. The total cost, the total employer’s cost. Well, you have to be careful when you are forming a company in Hungary and when you are making your business plan. It’s important, and not just in order to avoid misunderstandings. As we will show you soon, you can make a big mistake in your calculations if you do not consider this topic.
First of all 90% of the employees (Business Management Hungary’s estimation), especially the young people who have never been employed before, they mean the net amount what they will practically get to their bank account. But we, entrepreneurs know well that there are several taxes and contributions on the net amount. We show an example.
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!