What to watch out for when setting up a foreign corporate bank account?
When doing business with foreign clients, it might come in handy if your Hungarian company has a foreign corporate bank account. There is no limitation on the number of corporate bank accounts you can set up, just make sure your Hungarian bank account knows about all of them.
Bank account numbers are essential data
In Hungary, the main data of every Hungarian business are publicly available at the Company Registry. This way potential clients or partners can always make sure that a business, or an invoice coming from it, is legitimate.
Since your bank account number should be included in every invoice to be paid by bank transfer, the bank account numbers of your Hungarian company are considered part of its main data. As a result, every bank account opened for your Hungarian company must be recorded with the Company Registry and the Hungarian Tax Authority – whether it is with a Hungarian or a foreign bank.
Transparency is a must
Hungarian regulations require all transactions to be traceable. Incoming and outgoing invoices must be verifiable with your bank(s), so every bank account tied to your Hungarian company must be recorded.
You can open new bank accounts for your company anywhere and anytime, including with foreign banks. Just make sure to let your accountant know as soon as possible, so they can report it within 15 days. Data to report include:
- Name of the bank
- Bank account number
- Date of bank account opening (or closing, if applies)
You cannot (and should not) hide corporate bank accounts
Even if you do not report the foreign corporate bank accounts of your Hungarian company, the Hungarian Tax Authority can easily be informed about their existence during a tax audit either at your company or at a partner of yours, or thanks to the various international treaties that enable information exchange between banks and tax authorities.
If it is discovered that you have failed to report one of your bank accounts, first you will be sent a notice to do so. If you fail to comply within 15 days, you receive a fine of HUF 100,000 (ca. EUR 250). If you still fail to comply, you can expect another fine of HUF 500,000 (ca. EUR 1,250).
You still need a Hungarian bank account
While your Hungarian company can have foreign corporate bank accounts without limitations, you still need at least one bank account with a Hungarian bank too. This must be a HUF bank account, from where you can pay taxes to the Tax Authority and salaries to your employees. Compared to this, your foreign corporate bank account can only be a secondary account.
(In fact, tax payments are also accepted from accounts at fintech providers such as Wise or Revolut. However, the official policy is that such payments should be avoided. As a result, make sure you open a Hungarian corporate bank account for your Hungarian business as soon as possible, and maintain it throughout your operation.)
Helpers Finance at your service
Your Hungarian company is allowed to have any number of corporate bank accounts with foreign banks. Just make sure your Hungarian accountant knows about them, so they can report it to the Company Registry and the Tax Authority.
The Helpers Team has 15+ years of experience providing tailored solutions to foreigners doing business in Hungary. We can help not only with accountancy, but also company setup, bank account opening, and even residency application for the managing director and their family members.
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The post What to watch out for when setting up a foreign corporate bank account? appeared first on Helpers Finance.
