In this chapter, we present the most important factors to consider when deciding on the form of your investment. The table on page 32 summarises some of the advantages and disadvantages of the relevant company types to help you decide which company type best suits your needs.

This chapter deals with the most popular Hungarian company forms. There is no legal requirement to have a Hungarian owner or co-owner in the company.

Registering an official seat and opening a bank account are unavoidable obligations for every new business entity. In this chapter, we will discover basic information about these activities.

This chapter briefly introduces two additional forms of undertaking reserved only for foreign investors who wish to establish and pursue business activities in Hungary without having to set up a local entity that is formally independent of their parent companies.

This chapter highlights the key points of a merger and acquisition (“M&A”) transaction from a Hungarian perspective. This includes the general principles for M&A transactions and a description of the usual processes and parties’ obligations.

This chapter highlights the main points of Hungarian real estate regulation and some insights from an investor’s perspective.

This chapter aims to provide you with a brief overview of certain foreign exchange and financial regulatory characteristics due to Hungary not yet being a member of the Eurozone.

Every form of company in Hungary needs to be registered. However, in certain cases, the founding of a company is also subject to special sector-based foundation licences. This means that certain companies may only apply to register with the Court of Registration if they have already obtained a foundation licence. In other cases, already founded and registered companies may only pursue business activities subject to licensing after they have obtained a special sector-based activity licence. These rules apply to industries with detailed sector-targeted rules and where special authorities are entitled to control, aut-horise and even regulate the given industry. Apart from applying for licences, companies active in these industries need to comply with sector-based statutory rules or report certain fields of their activities to the competent Hungarian authority. In this section, we aim to give a brief practical insight into some of the main strictly regulated sectors (i.e. the financial, energy, telecommunication and pharmaceutical sectors), particularly in terms of the key compliance regulations, competent regulatory authorities and licences that companies must obtain for their foundation or operation.

In this chapter, we introduce the Hungarian tax authorities and their competencies, followed by an overview of the main building blocks of Hungarian state revenue, i.e. corporate tax, personal income tax and value-added tax (“VAT”). We also explain the anti-avoidance rules that influence tax optimisation and provide an insight into double tax treaty schemes with a view towards the growing importance of cross-border transactions.

This section aims to introduce the basic structure of the Hungarian accounting system. It summarises the general rules and concepts of bookkeeping and financial reporting as well as filing and publication obligations.

This section gives an overview of Hungarian auditing requirements and introduces the basic rules related to engaging auditors.

This chapter provides employers with useful information on the main rules of working in Hungary. It explains under what conditions foreign citizens can be employed in Hungary, what are the main working conditions the employers must ensure for their employees, how employment relationships can be terminated and finally, which rules must be followed if there is a change of employer.

This chapter aims to summarise various financial issues, e.g. how to secure bank credit in Hungary, whether there are any obstacles to repatriating profits realised in Hungary and the incentives for investment the Government ensures. Additionally, in this chapter, we also briefly introduce the possible implications of insolvency, e.g. bankruptcy and liquidation procedures.

In Hungary, significant changes took place in the economy in the nineties and the earlier, thoroughly regulated market was forced into change. In its place arose a market based on competition based on entirely different rules. Currently, Hungarian competition law follows that of the EU, similar areas have the attention of the competition watchdog, e.g. agreements restricting competition, abuse of dominant market behaviour, merger control and lastly unfair commercial practices. In this chapter, we will give you an overview of all of these areas.

In matching the trend of recent years of establishing foreign investment review mechanisms, Hungarian legislation has followed the example of the United States, China, Russia, Germany and a dozen other EU countries, in line with the adopted EU regulation in force since 11 October 2020. Within the framework of the state of emergency, Hungary has introduced several provisions that supplement or partially overwrite the existing foreign direct investment (“FDI”) regime. Moreover, a parallel temporary FDI regime has been established for the state of emergency, summarised in the FAQ.

Intellectual property is a key asset of businesses, especially for those operating in the information technology, communication and health sectors. This chapter introduces the structure of intellectual property as a whole and we provide a practical overview of the issues that may emerge when operating a business in Hungary.

As an EU Member State, Hungary must comply with Regulation 679/2016/EU on the protection of natural persons regarding the processing of personal data and on the free movement of such data. The Regulation is commonly referred to as the General Data Protection Regulation or the GDPR. The GDPR establishes both general and detailed data protection rules and creates transparency and an expected homogeneity of law enforcement throughout the EU.

Private wealth planning is becoming more and more popular in Hungary. High-net-worth individuals and families are seeking solutions to preserve their wealth and to plan for business succession.