Steps to Set Up a Company:

Hungary

Choose a Business Structure

1. Sole Proprietorship (Egyéni vállalkozó): Single owner, full liability.
2. General Partnership (Közkereseti Társaság - Kkt.): Two or more partners, shared liability.
3. Limited Partnership (Betéti Társaság - Bt.): General and limited partners.
4. Limited Liability Company (Korlátolt Felelősségű Társaság - Kft.): Separate legal entity, limited liability.
5. Private Limited Company (Zártkörűen Működő Részvénytársaság - Zrt.): Separate legal entity, limited liability, shares are not publicly traded.
6. Public Limited Company (Nyilvánosan Működő Részvénytársaság - Nyrt.): Separate legal entity, limited liability, shares can be publicly traded.
7. Branch (Fióktelep): A branch of a foreign company operating in Hungary.
8. Representative Office (Képviseleti Iroda): Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

1. Choose a Company Name: Ensure it is unique and follows naming regulations.
   • Company Register
2. Prepare the Articles of Association: Outlining the company’s structure and rules.
3. Open a Bank Account: Deposit the initial capital required for the company type.
4. Register with the Hungarian Company Court (Cégbíróság): Submit the incorporation documents and pay the registration fee.
   • Company Registration Portal
5. Obtain a Tax Identification Number (TIN) from the National Tax and Customs Administration (NAV): For tax purposes.
   • NAV
6. Register for Value Added Tax (VAT) with NAV: If applicable.

Open a Hungarian Bank Account

1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.
   • Hungarian Investment Promotion Agency (HIPA)

Comply with Hungarian Employment Laws

1. Employment Contracts: Draft contracts that comply with Hungarian labor laws.
2. Register with the Hungarian Tax and Customs Administration (NAV) for Social Security: For social security purposes.
   • NAV
3. Health and Safety Regulations: Follow guidelines from the Ministry of Human Capacities.
   • Ministry of Human Capacities

Accounting and Reporting

1. Set Up an Accounting System: Maintain accurate financial records in compliance with Hungarian accounting standards.
2. Annual Financial Statements: Prepare and file annual financial statements.
3. File Annual Tax Returns: Submit annual tax returns to NAV.

Laws and Regulations to Consider

Corporate Law

1. Civil Code (Polgári Törvénykönyv): Governs the formation and operation of companies.
2. Act V of 2006 on Public Company Information, Company Registration, and Winding-up Proceedings: Governs company registration and dissolution.

Tax Law

1. Act LXXXI of 1996 on Corporate Tax and Dividend Tax: Governs corporate income taxation.
2. Act CXXVII of 2007 on Value Added Tax: Governs VAT regulations.

Employment Law

1. Labour Code (Munka Törvénykönyve): Governs the terms and conditions of employment contracts.
2. Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pensions and the Funding for These Services: Governs social security contributions.
3. Occupational Health and Safety Regulations: Sets health and safety standards for workplaces.

Data Protection Law

1. Act CXII of 2011 on the Right to Informational Self-Determination and Freedom of Information: Governs data protection and privacy.
   • Hungarian National Authority for Data Protection and Freedom of Information

Environmental Law

1. Act LIII of 1995 on the General Rules of Environmental Protection: Governs environmental protection and sustainability practices.
   • Ministry of Agriculture

Intellectual Property Law

1. Act XXXIII of 1995 on the Protection of Inventions by Patents: Governs the protection of patents.
2. Act XI of 1997 on the Protection of Trademarks and Geographical Indications: Governs the protection of trademarks.
3. Act LXXVI of 1999 on Copyright: Governs the protection of copyrights.
   • Hungarian Intellectual Property Office (HIPO)

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Hungary. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.