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Advantages to Setting up a LLC (Kft) in Hungary

1.Advantage

Positive business market for foreign investors

2. Advantage

Heart of the part of Europe

3. Advantage

Hungary is a member of the EU.

4. Advantage

Incorporating company in Hungary gives you access to gain EU VAT and perform business across the EU without incurring any VAT

5. Advantage

Based on the request and approved by tax authorities of Hungary, your company can be considered as a Hungarian Taxpayer company by which the company can leverage the benefit of Double Tax treaties signed by Hungary with 60 other countries in the world to do business seamlessly.

6. Advantage

Legal entities can be a shareholder/quota holder in the company incorporated in Hungary. It can also be a foreign entity that holds the privacy of the Hungarian company and ownership rights in the form of shares/quota.

7. Advantage

The details of the beneficial owner is not recorded or registered.

8. Advantage

The process of company registration is pretty short but companies can start their business operations soon after the submission the registration application documents.

Hungarian Companies Potential Uses

The company which is incorporated in Hungary has the authority to hold native or foreign company and receive dividends from them. The dividends can be re-distributed without incurring any withholding tax by the Hungarian company.
If the EU-subsidiary directive is used then the dividends that are distributed by the EU Company to any foreign company through the Hungary based company then it would not be incurring any withholding tax either.

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