Those who wish starting business in Hungary might find a lot of advantages. As a member of the European Union, Hungarian companies and entrepreneurs are enabled to freely doing business on a market with 500 million people.
Such as to doing their share from that 20 mrd EUR source what comes from the EU for the improvement of the Hungarian economy, modernization, innovation and to assist increasing the range of employment.
The government changed the tax policy to help the people, the families keeping more from the gross wages, so both the savings and the purchasing power got higher.
Benefits of starting business in Hungary
Hungary puts a serious focus on FDI (Foreign Direct Investment), that’s why HIPA had been founded. Investments which create work places or which are being established in the developing regions of Hungary might get subsidies, for example tax incentives.
Also based on its localization, Hungary is a number one logistic country, keeping the capability to give place for factories or distributor firms.
We have to mention the well trained and „cost effective” manpower. The average salary in Hungary is just a little bit more than the half of the average in the EU. What means that in spite of the relatively high percent of labor related conributions the Hungarian work force is cheap. Plus the majority of the young work power speaks at least one other language above their mother language –usually this is English.
And among many others, here are some more advantages what makes starting business in Hungary very competitive comparing to other EU countries, included all the CEE countries as well:
– low, 9% of Corporate Tax,
– a maximum rate of 2% of Local Business Tax,
– flexible Labor Code,
– you can avoid EU import duties (on goods and services),
– you can apply for EU VAT numbers,
– some of the fees are extremely lows comparing to Western-European prices (for example office rent fees or salaries).
And on top of all this: you and your family can apply for Hungarian residency permit which will let you travel across the Schengen area without limitations.
The most important advice
There are two important facts what you have to consider when it comes starting business in Hungary.
The first is the administrative burden. Yes this is not something what makes our life easier although there are steps towards making it easier. For example the electronically avowals are more and more common.
The second, and this is the most important advice we can give: regardless of who you will work with in the future, with Business Management Hungary or not, chose someone. Find a person or a company who you can trust. Who won’t make you slept. Who will tell you frankly what you can expect. Who represents your business interests. Who works for you, for your success. Why? In the local governments in each district, also in the other public offices the officers do not speak languages. Also, to explain you the booking rules. Or the reason of the different interpretations about the same edict … So shortly: you will save a lot of time and money. And after all, this is what business consultation and management are all about, isn’t it?