Where should the company be based?
The law stipulates that a company registered in Hungary must have its registered office in Hungary. It is also possible to register so-called business locations and branches in the company registry in addition to the company’s registered office, but this is not mandatory. A company’s place of business is a permanent, independent business location where the company conducts its activities, located at a place other than the company’s registered office, while a company’s branch office is a place of business located in a different municipality—or, in the case of a Hungarian company’s branch office abroad, in a different country—than the company itself. To register a company’s registered office, place of business, or branch office, the owner of the property housing the registered office, place of business, or branch office must also provide written consent for the registered office, place of business, or branch office to be entered in the company registry.
Newly established companies often cannot afford to rent an office when they begin operations. It also happens that none of the members wishes to have their residence registered in the commercial register as the company’s registered office. For foreign founders, the lack of local knowledge and the day-to-day tasks involved in maintaining an office are usually the main issues.
Domicile services can provide a solution to all of these issues. A domicile means that the domicile service provider’s address will be registered in the commercial register as the company’s registered office. The company’s official notifications are also mailed to this address.
Is an accountant necessary?
Currently, tax laws in Hungary are changing very rapidly, often from one month to the next. Although not required by law, it is strongly recommended that companies seek the assistance of a qualified accountant or tax advisor to fulfil their obligations to the tax authorities and to maintain contact with them. We recommend that you consult with an accountant or tax advisor before establishing your company, as tax issues must be taken into account when setting up a company; for example, you must declare how you will pay value added tax.