Doing Business with Hungary

A comprehensive guide to doing business, exporting, investing, and manufacturing in Hungary.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Albanian Investment Development Agency

Tel: +355 42 251 001
Email: info@aida.gov.al
Web: www.aida.gov.al

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General Directorate of Customs

Albania General Directorate of Customs - International Trade Council

 

Tel: +355 42 253 820
Email: helpdesk.dpd@dogana.gov.al
Web: www.dogana.gov.al

National Chamber of Commerce

Albanian Chamber of Commerce and Industry

Albanian Chamber of Commerce and Industry - International Trade Council

Tel: +355 45 800 932
Email: cci.tirana@cci.al
Web: www.cci.al

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance and Economy, Albania

  • Type of Government: Parliamentary Republic
  • Population: Approximately 9.6 million
  • GDP: Around $180 billion USD
  • Corporate Tax Rate: 9%
  • Personal Income Tax Rate: 15%
  • Major Exports: Machinery, vehicles, pharmaceuticals, electronics
  • Major Imports: Machinery, vehicles, fuel, chemicals

 

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
  • Hungarian Investment Promotion Agency (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)
  • Hungarian Investment Promotion Agency (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
  • Hungarian National Tax and Customs Administration (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)
  • Hungarian Chamber of Commerce and Industry
  • Hungarian National Tax and Customs Administration (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

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
  • Hungarian Courts

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

Our Members Include Leading Organizations in Hungary

Ask our Experts on Doing Business in/with Hungary

If you’re looking to do business or invest in Hungary, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.