Given Hungary’s economic progress, it is clear that doing business in Hungary is a flexible and profitable alternative. This article will explain why Hungarian entrepreneurship is attracting so many international companies, as well as some of the potential pitfalls that entrants to the area may face.
The Advantages of Doing Business in Hungary
Foreign money is critical to Hungary’s economic development. As a result, Hungary’s business climate is eager to attract foreign investors by offering a plethora of commercial opportunities, low taxes, and a stable geopolitical location.
The following are some of the most noteworthy advantages of doing business in Hungary:
Excellent business location
Hungary is an excellent spot to establish a business since it is centrally located between Europe and the rest of the globe. Every part of the continent may be reached in a matter of hours, allowing for incredible travel simplicity. It’s ideal for a worldwide corporation wishing to establish a central point of operations.
It’s an easy procedure to set up a company in Hungary
Starting a company in Hungary requires roughly five business days from beginning to end. You do not even require a regional local partner in business, provided you have legitimate proof of identity. A recognized residence in Hungary, an English-speaking auditor, and a Hungarian bank account are all required.
Low cost of starting a business
Business-friendly tax rates, low real estate costs, and low export obstacles make it simple and inexpensive to establish a business in Hungary.
No need for a huge capital
You do not require a huge amount of capital to start a business in Hungary, but only a limited capital requirement is enough.
An instant VAT number is provided
If you establish a business in Hungary, you will automatically acquire a VAT number as part of the registration process. The entire process if easy and requires less effort.
The Most Difficulties in Doing Business in Hungary
Permits for Construction
It may seem difficult to obtain construction permission in Hungary because it takes at least three months. A large number of steps to get a construction permit may be a significant barrier.
It is not up to par in Hungary and has received negative ratings.
The key reasons for this low score are inadequate required transparency and liability indexes. That is, investment items may have hidden terms, and legal corporations may conceal their true financial positions.
A lawyer’s requirement
You may need a lawyer for each phase of your business in Hungary; else, you may end up in trouble.
In Hungary, the legal processes for foreign relations and trade are quite complicated. Arbitration over routine contract enforcement can last up to a year and includes convoluted court proceedings.