A company in Hungary for non-EU citizens

Hungary remains one of the few European Union countries where non-EU citizens can set up their own company and obtain a residence permit without a single visit to the country. The entire process, from registering the business to submitting the residence permit application, is carried out remotely, and, if necessary, the REVERA team can collect the finished card in Hungary under a power of attorney – without the client having to be present in person.

Company registration: up to two weeks

Setting up a company takes from two weeks if the documents are prepared promptly and may take up to a month if data collection proceeds more slowly. The procedure is entirely online: the REVERA team selects the registered address, and the signing of the constitutional documents is confirmed via video call. The applicant needs to provide personal data and the parameters of the future company: a scan of their passport, city of birth, mother’s first name and surname (if not stated in the passport), the company name, which is checked for matches with existing names, the type of activity and the amount of share capital – from HUF 3,000,000 (approximately EUR 8,150). If there are two founders, for example spouses, both immediately become both founders and directors, without any additional procedures.

A curious detail of Hungarian bureaucracy: almost all registers, from company registration to bank forms, require not only the applicant’s name but also their mother’s first name and surname.

Residence permit documents: prepared in parallel with the company

The residence permit package can be put together at the same time as the business is being registered, which saves around a month. The client needs to provide existing contracts with partners, including those re-signed with the new Hungarian company, or letters of intent to cooperate – if there is no contract yet, current counterparties can be asked to sign such a letter. In addition, information on businesses already in operation is required, as well as a bank statement for the last three months issued no earlier than 30 days before submission. Meanwhile, we prepare a business plan based on the client’s business experience, proof of accommodation in Hungary, an insurance policy and a power of attorney for submission.

For approval, it is important to demonstrate financial solvency: monthly receipts to a personal account of at least EUR 3,000 over three months and account balances of at least EUR 30,000 per applicant. The source of these funds may be salary, dividends or interest on deposits – total personal income is taken into account, not just a single source. If you have a non-standard income or turnover structure, we analyse such cases individually, but the minimum personal income of EUR 3,000 per person is a requirement that does not change. If the company already has turnover on its corporate accounts, this can be added to the business plan as evidence of genuine activity in other jurisdictions.

Submission and receipt of the card: up to four months from the start

Documents for the company and the residence permit are submitted at the Hungarian consulate in your country, usually in a single session, and biometric data is taken at the time of submission. The review takes from one and a half to three months, around two months on average. Once approved, the residence permit card is produced by the immigration service in Budapest and arrives at the office in Hungary within two to three weeks – it is not forwarded to your country. There are two ways to collect the card: in person, or by issuing a power of attorney, in which case the REVERA team will collect it. There is no need to travel to Hungary separately for biometrics: the entire process, including fingerprinting, takes place at the consulate in your country. If you plan to enter in person, it is important to do so within the first three months of validity of the D visa issued by the embassy after approval – this is a separate requirement, unrelated to who collects the card itself.

Taking all the stages together, the realistic timeframe from the start of company registration to having the residence permit card in hand is up to four months, while the company itself and the account are already in place within the first month.

What a company in Hungary offers: taxes and banks

Hungary is one of the most tax-efficient jurisdictions in the European Union. Three reference points that matter for business planning:

• corporate profit tax (TAO) – 9%, the lowest corporate tax rate in the EU
• VAT – 27%, but reduced rates of 18% and 5% apply to certain categories of goods and services, and companies with a small turnover are exempt from VAT up to a threshold of HUF 20,000,000 (EUR 54,920) per year
• small businesses may opt for the alternative KIVA regime with a 10% rate on a simplified tax base instead of the standard corporate profit tax

Banking is usually straightforward: personal and corporate accounts with Wise are opened immediately after the residence permit is obtained, and accounts with traditional banks are also available, although the process takes longer and may require proof of the source of funds.

Turnkey support

The client does not need to deal with local procedures in Hungary on their own – the REVERA team handles the entire process, including presence in Budapest. We find office premises for rent to suit the needs of the business, deal with related organisational matters and handle communication with local authorities at all stages, from company registration to receipt of the residence permit card. Once the business has been set up, there is no need to look for an accountant separately: we provide a specialist who maintains the company’s reporting on an ongoing basis, so the client receives not a one-off registration but a working structure with ongoing support.

One solution – three objectives

This arrangement is particularly convenient when several objectives need to be achieved with a single action.

Firstly, if a European company is needed anyway to work with foreign clients, the Hungarian jurisdiction provides a practical business tool.

Secondly, the same company becomes a legal ground for remaining in the EU with resident status, and not only for one applicant but for each of the founders. If the company is set up for two people, for example spouses, both immediately become both founders and directors – and each receives their own residence permit card on this basis, without a separate procedure for the second family member.

Thirdly, a Hungarian company is entitled to hire employees, and as the business grows, residence permits can be obtained for the future team on the same basis – without having to look for a separate legal structure for each new person.

How to start

If you are considering a company and a residence permit in Hungary for yourself, a partner or your team, get in touch – we will look at your specific case and advise you on where to start. You can write to us at y.zadesenskaya@revera.legal.