Moving to Hungary with the organization of your own business is not just a change of residence, it is the launch of a new stage in life. In order for the process to become a runway for you, it is important from the very beginning to rely on the experience of those who have already gone through it with their clients. Our team takes care of every little detail (from assistance in choosing a corporate uniform to paperwork at the migration service) and conducts business until obtaining a residence permit card. We turn complex legal requirements into a clear plan of action. Focus on the business idea, not on studying by-laws.
Legal basis
The basis of the residence permit program in Hungary through business is the national law “On Entry and Stay of third-country nationals.” This document creates a legal corridor for foreign entrepreneurs. The initiative is aimed at citizens of countries outside the European Union who are ready not just to register a company, but to actually operate in it, creating value for the Hungarian economy.
The key requirement is not to have a certain amount in the account, but a convincing and detailed business plan. The Migration Service wants to see that your company is not a fiction for obtaining documents, but an operating mechanism that will generate income, pay taxes and, possibly, create jobs.
What kind of business can you do?
The legislation does not contain a strict list of permitted or prohibited activities. You can open an IT company, a consulting agency, a small cafe, or provide services in the field of tourism. The main criterion is legality and reality.
The authorities will analyze whether your activity is really necessary for the market and whether it will be able to provide sufficient income for living in Hungary. The goal is to show that the company will be sustainable.
Advantages and prospects of Hungarian business
Opening a company in Hungary is not only a way to legalize it in Europe. This is a strategic decision with a number of advantages:
- Income tax is fixed at 9%, a record low in the EU.
- The company registers in 1-3 business days. Electronic filing excludes visits to officials.
- A corporate account is opened even for Kft (an analogue of LLC). The absence of residency requirements for the director allows you to manage from a distance.
- A residence permit gives the right to travel freely within the Schengen area for up to 90 days for every 180 days.
Key requirements
The process of obtaining a residence permit through a business in Hungary is a process in which a well–thought-out strategy is important at every stage. Let’s break it down into its components to understand what makes up the path from a business idea to a resident’s card.
Business plan
The business plan is at the center of the whole process. And this is not just a formal document for show. He must be lively, convincing and, most importantly, realistic. It should include not only standard sections (market analysis, product or service description, financial forecasts for 1-3 years), but also prove that you are able to implement this plan. The goal is to show that the company will generate sufficient income for your stay, taxes and, ideally, for future development.
Procedure and terms
The process of company registration in Hungary is quite clear. Usually, entrepreneurs choose the Kft form. (Korlátolt felelősségű Társaság). This is the local equivalent of a limited liability company (LLC). The procedure requires the participation of a Hungarian lawyer, who will prepare the constituent documents and submit them to the registration court. The entire process (from preparing the documents to obtaining the registration number) usually takes from a few days to a couple of weeks. Next is the filing of documents for a residence permit. After the company is registered, its director gets the right to request a residence permit. The officially announced review period is up to 60 days.
Presence in the country and moving with family
Hungarian laws do not establish a strict “183 days” rule that requires you to stay in Hungary without leaving. However, this type of residence permit assumes that you personally manage your business. If, when extending your residence permit, it turns out that you spend only a couple of weeks a year in the country, the migration service may have questions about the reality of the activity. Therefore, the key principle is to maintain the center of vital and business interests in Hungary.
The main applicant has the right to bring his spouse and minor children with him under the family reunification program. To do this, it is necessary to show that the income allows you to support the whole family, provide them with housing and medical insurance. This makes business immigration not just an individual project, but an opportunity for a full-fledged family move. It is important to note that family members can obtain a residence permit only after the first year of residence in the country of the main applicant (after the first extension).
Project investment and cost
Moving with a business inevitably comes down to the issue of money. But in the Hungarian program, it’s mostly about sound financial preparation.
Minimum investments and authorized capital
The Hungarian authorities require a limited liability company (Kft) to have an authorized capital of 3,000,000 HUF. There is an important caveat here: this money is not frozen in the account and does not go to the state budget. These are the start–up assets of an opening company. You can use them for operational needs: office rentals, equipment purchases, and salary payments. In fact, the government is asking not to pay, but to show that the business has the initial financial resources to launch.
Launch cost
The process of legal registration of a company is the first real expense. This price usually includes the services of a lawyer, who is a mandatory participant in the process, the preparation and translation of documents, as well as the payment of registration fees. A complete package of Kft registration services. turnkey, as a rule, costs in the range from 2,000 to 4,000€. This amount covers all legal issues, from drafting the charter to submitting documents to the registration court and obtaining a tax number. This is an investment in the correctness and speed of the process, which saves you from having to figure out the intricacies of Hungarian corporate law on your own.
Government fees and other expenses
As for direct payments to the state, they are modest. The consular fee for applying for a residence permit is about 110€. This is a fixed fee for reviewing the case. However, the main costs lie on a different plane. You need to be prepared for additional but mandatory expenses.:
- Accounting services. The service costs an average of € 150-300 per month and is not an option, but a requirement of the law.
- Legal address. The company must have an official address in Hungary. The cost of renting it, if you do not have your own office, can be several hundred euros per year.
- Proof of livelihood. In addition to the money for the business, you need to show the migration service that you have personal funds to live in Hungary until the company begins to generate a stable income. There is no clearly defined amount, but practice shows that the presence of 10,000–15,000euros in a personal account is a sufficient argument. Just a demonstration of their presence.
- Health insurance and rental housing. These are also required attributes for obtaining a residence permit. It is necessary to provide an apartment rental agreement and a medical insurance policy covering the entire period of validity of the requested residence permit.
The registration process is step-by-step
- Assessment of opportunities. The lawyer analyzes the applicant’s profile, confirms capital adequacy, checks potential risks (scope of activity, sanctions restrictions, source of funds). The correct start reduces the probability of failure already at the stage of company registration and saves time.
- Preparation of a business plan. A detailed document is being developed: a product description, a profit forecast for 2-3 years, a cost structure, and a job creation plan. Without it, the migration service will not approve a residence permit.
- Company registration. The Kft form is selected, the constituent documents are prepared, the authorized capital (from 3 million HUF) is deposited, and a bank account is opened. The process takes place online through the e-Cég system.
- Preparation of a package of documents. A certificate of registration, tax numbers, a lease agreement for a legal address, an insurance policy, bank statements, and proof of family housing are collected.
- Applying for a residence permit. The application is placed through the Enter Hungary portal or submitted at the consulate. Originals and certified translations are attached to each form.
- Receiving a plastic document. After a positive decision, the applicant registers at the place of residence and takes the residence permit card.
The whole process, despite its apparent simplicity, is full of nuances. The slightest mistake or inaccuracy can lead to delays or rejection. That is why many entrepreneurs prefer to take this path not alone, but with a team that will take on the entire legal burden. Our company’s services will allow you to focus on the main thing, shifting routine but critically important work with documents into the hands of specialists who know how this mechanism works from the inside.
Risks and ways to eliminate them
Any serious project carries risks. That is why careful preparation is critically important. A mistake leads to more than just wasted time. A possible failure may close the doors for a long time. Let’s look at the main pitfalls and how to get around them.
- A weak business plan. This is the main risk. If officials do not believe that the company will work and generate income, it is almost a guaranteed refusal. There is only one solution: the plan must be carefully verified.
- Financial opacity. The second most important risk is money. It is necessary not only to show the availability of funds in the accounts, but also to be ready to explain their origin. An opaque financial history or the sudden appearance of a large amount in the account right before submitting documents raises suspicions. The migration Service looks at you as a future resident, and they want to be sure of your financial stability.
Our job is not just to collect the documents according to the list. The main task is to build a convincing story out of them. We look at your case through the eyes of a migration officer and eliminate anything that may raise doubts in advance. We check each document so that it not only formally meets the requirements, but also helps to achieve the goal. Our experts find and fix vulnerabilities before they turn into a real problem. This turns an unpredictable process into a manageable project with predictable results.
Journalist, editor with 9 years of experience in investment immigration. I specialize in analysis of residency and tax programs, as well as individual selection of jurisdictions for relocation.
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