Planning to enter to the European market? Hungary or Austria can be a good option
Company formation in Hungary or Austria may be a good alternative to base your business in Europe
Company formation in Hungary
If low corporate tax, and a quick and easy company registration process is important for you, the best option could be Hungarian company formation as in Hungary, the corporate tax rate is a mere 9%, compared with Ireland’s 12.5% and Lithuania’s 15% corporate tax rate. Also, the registration is quite fast and the process usually takes less than 1 week.
In addition, unlike in some other European countries, you will not need to wait for weeks to receive your EU VAT number, as you will get it on the same day when the company is incorporated. In addition, the costs of company formation Hungary are quite low compared to the costs of the Austrian company registration, and the minimum amount of share capital is quite low as it is only 3 million Forints (less than 8,000 euros), and there is no need to keep the share capital as a deposit like in some other European countries. And what makes the process even faster is that you don’t have to wait for the bank account to be opened, as this can only be done after the incorporation.
The government administration is fully electronic in Hungary, and you only need a passport in order to register. The registration process can even be done remotely without having to travel to Budapest. And with your new Hungarian company you will have one of the lowest corporate tax rates in Europe and have the chance to access the European Common Market.
Company formation in Austria
If the German market is also important for you, you have to think about company formation in Germany or Austria as well, as German-speaking customers are often more faithful and tend to buy goods or services from a German or Austrian company.
The full process of company formation in Austria can be done within two weeks and the starting share capital is only 5,000 euros in case of an Austrian GmbH (this will have to be raised to 10,000 euros in the first year and to 35,000 euros within 10 years), which is quite low if compared to the minimum share capital of 25,000 euros in case of a German GmbH. Also in Austria you don’t have to wait for your bank account to be opened, as an Austrian company can be registered before the bank account is open, which is not possible in Germany.
So if time is something that really matters for you when entering the German-language market, you should consider Austrian company formation as it takes much less time than to set up a company in Germany.
Reap the rewards
The advantages of already owning a European company extend beyond this, especially for UK residents and other third-country nationals, as you will even gain the chance to register for permanent residence in the EU. To achieve this, you will either require permanent income from the new business or at least renting out properties.
Choosing to obtain a second European residence comes with its benefits and possibilities, and third-country nationals can travel liberally inside the European Union, which can broaden your business prospects.
To explain this in more detail with the example of Hungary, if you form a company in Hungary and start the business operation, you can get permanent residency as you are doing business in Hungary. Or if you lack experience or expertise in business, you might choose to purchase a minimum of two properties that the Hungarian company will rent out and provide a permanent income, and on this basis you also can be eligible for permanent residency in Hungary.
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