Challenges to Avoid When Doing Business in Hungary

Challenges to Avoid When Doing Business in Hungary

When looking into your options for forming a business in Europe, you’re likely to find that Hungary is one of the best choices. There are several reasons why this could be the ideal spot to start your company. Countless individuals have taken advantage of the lower income taxes, English infrastructure, and more that this destination has to offer.

Even with all the benefits that can come with doing business in Hungary, there can still be challenges. The best way to combat them is to prepare yourself. With that in mind, here are some of the key points to keep in mind before you start.

It’s a brand-new environment

One of the potential issues that you’ll face when you decide to do business in a foreign country is the differences between the chosen location and home. Things like the economic environment and even cultural differences can often be a little jarring. Thus it is challenging for those who aren’t too familiar with the local climate.

Hungary is no different. But, you can make the transition far easier for yourself by simply learning more about what business is like here. From the tax requirements to general work ethic; it can be worth taking the time to find out more.

You need to have a legal representative

While there are a few unique things to consider relating to company formation in Hungary, one crucial aspect is that any company must have an attorney. The lawyer will stand in place of the business to the Registry Court, as well as prepare your legal documents.

Alongside a good attorney, it’s also worth taking the time to find an accountant to assist you. This is helpful for monthly reports and they act as a representative when it comes to tax authorities.

In either case, having a high-skill local professional on your side can be essential. From making appointments to having an understanding of the culture, hiring an attorney/accountant from Hungary is a safe bet.

The longer part of the process

Certain aspects of setting up a business in Hungary can be quite swift. However, there are a few parts of the process that are a little more time-consuming. This is worth considering before you begin, so you can properly plan.

For example, you might not get the construction permits you need immediately. It usually takes just over a hundred days to deal with them all and work through the 26 procedures. With things like inspections and a whole host of registration forms, there’s a lot that goes into just this part of the process alone.

Another aspect of company formation that might take a while is getting electricity. Some startup companies in Hungary take over 250 days to get the electrical connections they need for their business.

Is it worth it? 

With all this, you might be wondering if there are better opportunities elsewhere. The truth is that Hungary is one of the best places in Europe to start a business. Even with the complexities that can come with it. This country has a lot of advantages on offer. For this reason alone it’s well worth taking the time to ensure that all the requirements are met to the best of your ability.

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