Setting up a company in Hungary – The importance of business planning
Setting up a company in Hungary is an easy and fast way for non-EU citizens to establish themselves in the European market. The process will not take more than a few business days, and you immediately receive an EU VAT number as well. However, you might also want to obtain a Hungarian resident permit, with the help of which you can travel freely within the Schengen zone and the European Union. In order to get that, you will have to prove that your company is (or will be) active and profitable. A well-written business plan will do the trick for you.
The main points you need to show in the business plan are the following
- the business that is described in the business plan is realistic and has a chance of success
- the applicant has taken care to research the market and is basing the company’s projections on sound, reliable data and calculations
- the applicant has the qualifications and experience to bring the business to success
- the business is compliant with local regulations and pays all required taxes
- the company’s operation requires the applicant’s full-time presence in Hungary
- in areas where local know-how is required, the applicant is prepared to employ local workforce or outsource the relevant tasks to local providers
Claims and figures in the business plan must be supported by documents (e.g. signed agreements or letters of intent, invoices, labor contracts and so on). Furthermore, when the applicant’s residency comes up for renewal, the evaluating authority will check whether the projections of the originally submitted business plan have been realized, and if they have not, we must provide justification for this. If the business plan makes unrealistic claims and is therefore impossible to fulfil, this puts the renewal at great risk. Because of this, all business plans be prepared with feasibility in mind.
As one of our main products is “residency through company ownership”, the services by Helpers Hungary naturally include business planning as well. If you want to learn more about this service, please call our office on +36.1.317.8570, or write a letter to info@helpers.hu.
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