Subsidiary
A foreigner looking to start a company in Hungary can be perplexed by the many forms of business offered by the country. The most popular one is undoubtedly the Ltd (Kft in Hungarian), but there are many more, each with different benefits and limitations.
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When you want to start doing business in Hungary, you might want not to create an individual LLC but set up an outpost of your foreign company, which can be a branch office or a commercial representative office.
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CFC laws in general, alongside double taxation treaties, control how and where income from foreign companies should be taxed.
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Several international corporations choose Hungary to set up a subsidiary in Europe, giants like IBM or Microsoft among them. The most attractive features of the country are low taxes, affordable operation costs, a central location in the EU and full Schengen access.
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