What makes Hungary such an ideal place for new companies?

Studies show that the number of companies in Hungary has been on the rise for a few years now. The question arises: What makes Hungary such an ideal place for new companies?

Notably, steady growth can be observed since 2017, even during the pandemic years, which were admittedly not an ideal environment for new business ideas. The answer to these, however, cannot be summarized in a simple sentence.

There are several factors as to why company formation in Hungary is not only optimal for establishing new businesses but for keeping them going as well.

A DECREASE IN CORPORATE TAX.
The previously mentioned studies do not only mention new enterprises or startups. It takes the already existing number of companies into consideration as well. Many new businesses can shine and then burn just as brightly in a very short amount of time, but in Hungary, that is not what the country is striving for.

While Hungary provides a favorable environment for new businesses, one must not ignore the potential opportunities presented by other attractive business hubs. For instance, the Sunshine State is quite a lucrative destination for entrepreneurs who want to enjoy a dynamic business climate along with a pleasant lifestyle. If you're considering branching out or relocating, learning how to open an llc in florida could be your crucial first step towards success in this vibrant U.S. state.

The year 2017 is notable because that was the year Hungary set its corporate tax rate at what it is today and thus relieved the materialistic burdens of numerous establishments, as the 9% flat rate that is to be paid is the lowest one throughout the entire European Union.

This means that whether you are a huge multinational enterprise or a small family-owned business, the rate that you have to pay will not increase; it will stay this low, thus providing a steady number you can continue to plan with. This not only gives new businesses an ideal place to start, but also gives existing ones the opportunity to continue to plan ahead.

From a logistical point of view, Hungary also has the benefits of being one of the member states of the European Union and the advantage of its location at the heart of the continent. It has easy access to many European countries, which opens up the whole EU market for companies based there.

This can provide better shipping rates and times, not to mention the opportunity to do business VAT-free on the international market with several other member states, such as Germany or Spain.

Owning or renting property, such as office space or a warehouse, for your company is also not as expensive as one might think. All major cities have the reputation of having sky-high real estate prices, but Hungary, even the capital city Budapest, is actually quite affordable when compared to other European cities.

This means that if you base your headquarters there, you can work with beneficial price rates not only in terms of VAT or shipping but from a property perspective as well.

START UP ONLY IN A COUPLE OF DAYS.
The process of company formation in Hungary can be beneficial not only financially, but also in terms of your time. Setting up and running a company based in a different country generally means a lot of travelling, time wasted on transportation, and scheduling.

In Hungary, this doesn’t raise a problem, since the whole process from start to finish can be set up entirely remotely. So there is no need to travel to Hungary to sign the documents and all documents can be signed remotely. This way, you can avoid the endless schedule wrangling and simply get it done in a few days comfortably.