Doing Business with Hungary

Exporting to Hungary involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Hungary’s import regulations and standards for your product.
   • Check for any product-specific certifications needed.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Hungary.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with EU labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company experienced with exports to Hungary.
   • Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Pay any necessary duties and taxes.

6. Understand Duties and Taxes

   • Familiarize yourself with Hungary’s import duties and applicable taxes, as part of the EU.

7. Distribution and Sales

   • Establish distribution channels within Hungary.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Hungarian Customs and Tax Administration
  • Website: NAV
• Hungarian Investment Promotion Agency (HIPA)
  • Website: HIPA

Importing goods into Hungary involves several steps. Here’s a comprehensive guide:

1. Register as an Importer

   • Obtain an EORI number for customs activities within the EU. Register with the Hungarian Tax and Customs Administration.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code to identify applicable duties and taxes.

3. Check Import Regulations

   • Ensure compliance with EU and Hungarian import regulations, including any necessary permits or certifications.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.

6. Customs Declaration

   • Submit an import declaration through the National Tax and Customs Administration (NTCA).
   • Work with a customs broker if necessary to facilitate the process.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and VAT.

8. Receive Your Goods

   • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

• National Tax and Customs Administration (NTCA)
  • Website: NTCA
• Hungarian Investment Promotion Agency (HIPA)
  • Website: HIPA

Incorporating a company in Hungary involves several steps. Here’s a comprehensive guide:

1. Choose a Company Type

   • Decide on the type of company (e.g., Limited Liability Company – Kft).

2. Select a Company Name

   • Ensure the name is unique and complies with Hungarian regulations.
   • Check availability with the Company Registry.

3. Prepare Documentation

   • Draft the Articles of Association and other necessary documents.
   • Include details about shareholders, directors, and registered office.

4. Open a Bank Account

   • Deposit the required initial capital into a Hungarian bank account.

5. Register the Company

   • Submit the application to the Court of Registration.
   • Pay the registration fee.

6. Obtain a Tax Identification Number

   • Register with the Hungarian National Tax and Customs Administration (NAV).

7. Register for Social Security

   • Enroll employees with the Hungarian social security system.

8. Comply with Local Regulations

   • Obtain any necessary permits and licenses specific to your business activity.

Costs

• Registration Fees: Vary based on company type and capital.
• Notary Fees: Depend on the complexity of the documents.
• Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

• Hungarian Company Registry
  • Website: Company Registry
• Hungarian National Tax and Customs Administration (NAV)
  • Website: NAV

Setting up a manufacturing plant in Hungary involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze the market to understand demand, competition, and location advantages.

2. Choose a Suitable Location

   • Consider factors such as proximity to raw materials, transportation, and workforce availability.

3. Incorporate Your Company

   • Follow the steps to incorporate a company in Hungary, including registration with the Company Registry.

4. Obtain Necessary Permits and Licenses

   • Apply for environmental, zoning, and construction permits through local authorities.

5. Secure Financing

   • Explore financing options through banks or investment partners.

6. Design and Construct the Facility

   • Hire local architects and contractors for design and construction.
   • Ensure compliance with local building codes and regulations.

7. Install Equipment and Machinery

   • Purchase and install machinery necessary for production.
   • Ensure equipment meets safety and operational standards.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.
   • Register employees with the Hungarian social security system.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors to ensure smooth operations.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Hungarian Investment Promotion Agency (HIPA)
  • Website: HIPA
• Hungarian Chamber of Commerce and Industry
  • Website: MKIK
• Hungarian National Tax and Customs Administration (NAV)
  • Website: NAV

Registering a trademark in Hungary involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered.
   • Use the database at the Hungarian Intellectual Property Office.

2. Prepare Your Application

   • Include details such as the trademark design, classification of goods/services, and applicant information.

3. File Your Application

   • Submit the application to the Hungarian Intellectual Property Office (HIPO).

4. Pay the Application Fee

   • Fees vary; contact HIPO for the latest costs.

5. Examination Process

   • The office reviews the application for compliance and potential conflicts.
   • Respond promptly to any objections or requests for additional information.

6. Publication and Opposition

   • If approved, the trademark is published for opposition. There is a period for third parties to challenge the registration.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered. You will receive a certificate of registration.

8. Maintain and Renew the Trademark

   • Trademarks are valid for 10 years and can be renewed. Submit renewal applications before expiry to maintain protection.

Costs

• Application Fees: Contact the Hungarian Intellectual Property Office for specific costs.
• Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

• Hungarian Intellectual Property Office
  • Website: HIPO

Resolving commercial disputes in Hungary involves several steps. Here’s a guide on the process:

1. Attempt Negotiation

   • Begin by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions.
   • Mediation is often quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution.
   • Provides a structured approach with enforceable decisions.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit in the appropriate commercial court.
   • Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case.
   • Follow the legal procedures as guided by your attorney.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Hungarian Chamber of Commerce and Industry
  • Website: MKIK
• Hungarian Courts
  • Website: Bíróság

When considering doing business in Hungary, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: Hungarian is the official language. English is commonly used in business settings.
• Business Etiquette: Punctuality is important. Building personal relationships and trust is valued.

Political Factors

• Government Structure: Parliamentary republic with a stable political environment.
• Regulatory Environment: Part of the EU, Hungary follows EU regulations and standards.

Economic Factors

• Open Economy: Key industries include automotive, pharmaceuticals, and information technology.
• Corporate Tax Rate: Competitive at 9%, one of the lowest in the EU.

Foreign Exchange

• Currency: Hungarian Forint (HUF).
• Exchange Rate: Monitor for fluctuations; can impact pricing and contracts.

Rule of Law

• Legal Framework: Strong legal system with protection for property rights and intellectual property.
• Judiciary: Independent and efficient, though processes can sometimes be slow.

Business Environment

• Infrastructure: Well-developed with excellent transportation and logistics networks.
• Workforce: Skilled and educated, with a strong emphasis on engineering and technology.

Key Resources

• Hungarian Investment Promotion Agency (HIPA)
  • HIPA
• National Tax and Customs Administration (NTCA)
  • NTCA
• Central Bank of Hungary
  • Central Bank of Hungary