Starting a business
Starting a business
The e-government portal run by the Ministry of Interior provides all relevant information on starting a business in Hungary. It provides detailed information and useful links to guide entrepreneurs through the various steps of the formal procedure, including preparing the corporate documents by a Hungarian attorney-at-law; opening a bank account; registering your company at the Hungarian Court of Registry, and obtaining a tax identification number; registering with the Hungarian tax authority, municipality, chamber of commerce; and data provision on employees to the tax authority.
The official authorities involved in the procedure include:
The Hungarian Intellectual Property Office, directed by the Government, contains all the information you need to know about intellectual property in Hungary, may it be patent, trademark, or copyright.
Subsidies for investment projects in Hungary
The Government of Hungary, through the Hungarian Investment Promotion Agency (HIPA), and the City of Debrecen offer a range of support and incentives for businesses to set up and create jobs in Debrecen. The level of incentives depends on the size of the investment and the number of jobs created. The incentives offered include cash grants, development tax credits, training grants, relocation grants, social tax credits, and job creation grants. See the offered subsidies for investment projects in Hungary here.
Business environment in Debrecen
When starting a business in a new place, it is important to understand the social and economic factors that influence the local business environment. These factors include the percentage of the population in the productive age group, the main sectors of the economy, the presence of domestic and international investors in the city, the annual labour costs, the unemployment rate, and cost of living.
To find all the relevant business information for establishing a new base or headquarters in Debrecen, visit the following website.
Types of companies that can be established in Hungary
General partnership (Közkereseti Társaság – Kkt)
- The partners of a general partnership (Kkt.) agree to make available the capital contribution required for its activities to the partnership.
- They have joint and several liabilities for the obligations of the general partnership (Kkt.) that are not covered by the partnership’s assets.
- There are no requirements for the initial capital.
- Establishment is free of registration fees and publication charges.
Limited partnership (Betéti Társaság – Bt)
- The partners of the limited partnership (Bt.) undertake to provide the capital contribution necessary for its activities.
- There must be at least one general partner and one limited partner. General partners are jointly liable for the limited partnership obligations that are not covered by its assets. Limited partners are not liable for the obligations of the limited partnership (Bt.), unless the Civil Code (Act V of 2013) states otherwise.
- 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.
- No minimum capital requirements.
- The establishment is free of registration fees and publication charges.
Private joint stock company (Zártkörűen Működő Részvénytársaság – Zrt)
- Founded with a share capital consisting of shares of a predetermined number and nominal value. The shareholders’ obligations are limited to the provision of the nominal value or accounting value of their shares.
- The members of a private joint stock company (Zrt.) are not liable for the private joint stock company’s obligations, unless the Civil Code provides otherwise.
- The shares of a private joint stock company (Zrt.) cannot be listed on any stock exchange
- Initial capital must be at least HUF 5 million (~EUR 15,000)
- It is ideal for big enterprise
Public joint stock company (Nyilvánosan Működő Részvénytársaság – Nyrt)
- The shares are listed on a stock exchange
Initial capital must be at least HUF 20 million (~EUR 60,000)
- The administrative requirements and disclosure obligations that apply to public joint stock companies (Nyrt.) are stricter than those applicable to private joint stock companies (Zrt.)
- To create a public joint stock company (Nyrt.), a private joint stock company (Zrt.) must change its corporate form from private to public.
Limited liability company (Korlátolt Felelősségű Társaság – Kft)
- Founded with an initial capital consisting of capital contributions of a predetermined 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 members of a limited liability companies (Kft.) are not liable for the limited liability companies (Kft.) obligations unless the Civil Code states otherwise
- Initial capital must be at least HUF 3 million (~EUR 9,000)
- Establishment is free of registration fees and publication charges
- Branch office is an organisational unit of a foreign company.
- A branch has no legal identity, but has legal capacity to acquire rights and undertake obligations under its corporate name on behalf of the foreign parent company (e.g. it can acquire properties, conclude contracts, sue or be sued).
- Establishing a branch is a suitable option for foreign investors intending to establish a Hungarian business presence.