Opening a branch of a foreign company in Hungary

IST Hungary provides comprehensive services for establishing branches of foreign companies in Hungary. Our Hungarian lawyers will handle all legal and organizational matters, ensuring a smooth entry into the European market.

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Why is Hungary the ideal choice for international expansion?

Tax attractiveness - corporate tax rate of just 9% (the lowest in the EU)
Access to the 500-million-strong EU market with no customs barriers
No share capital requirements
Direct management from the headquarters without setting up a separate legal entity
Record inflow of investments - over €4 billion annually

*According to the Hungarian National Bank, the country is among the top 3 most investment-attractive countries in Central Europe.*

Legal Status of a Branch in Hungary

A branch of a foreign company has a special legal status:

It conducts business on behalf of the parent company
It is not an independent legal entity
It is required to register with the Commercial Register
It has the right to conclude contracts and hire personnel

Key Features:

Full financial liability of the parent company
Mandatory conformity of names

Tax Obligations of the Branch

A branch pays taxes only on its Hungarian-sourced income:

Corporate tax: 9% of profit
VAT

Important: Internal settlements between the branch and the head office are not subject to VAT.

How We Organize the Registration Process

Initial Consultation

We analyze your business and develop an optimal strategy
Document Preparation

We prepare and translate the incorporation documents
Official Registration

Our Hungarian lawyer submits the documents for registration to the Hungarian Court of Registration (timeframe: 2-5 business days)
Tax Registration

We obtain the tax identification numbers
Banking Support

We assist with opening an account in a European bank

Required Documents

For registration you will need:

Legalized certificate of incorporation of the parent company
Articles of association with notarized translation
Full list upon request...

We will provide the complete list of documents after analyzing your situation.

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Our Competitive Advantages

30+ years of successful operation in the Hungarian market
Personal manager at all stages
In-house legal department
Additional services – accounting, payroll, residency permits

Start your European expansion today!

Book a consultation – and receive a detailed plan for opening a branch in Hungary.

P.S. For company executives and investors, various types of Hungarian residence permits are available:

Hungarian residency permit for 3 years through company establishment, or Hungarian residency by investment for 10+10 years for investors. Please contact our immigration expert for a consultation.