When starting a new start-up, the three most important keys are the right market, the right product, and the right message. But also you have to keep in mind the low taxation, the low operational costs and the location as these factors can also strongly affect your start-up’s success.
Forming and operating a new start-up business can be daunting and scary especially in a foreign country but the following three factors can help you decide if Hungary is a great fit to you and your start-up.
Low taxes
When grounding a new start-up, you have to consider the taxation as well such as corporate tax, which can strongly affect the profitability of your start-up. In most European countries the corporate tax is 15% or higher, but in Hungary the corporate tax is incredibly low, only 9 %, and it is the lowest percentage in Europe.
As Hungary did not join the EU directive on minimum taxation which would raise this taxation to a 15 % rate, so this implementation within the European Union does not change the 9% corporate tax in Hungary.
To add more to it as soon as you complete your start-up registration you acquire your EU tax number as well as your Hungarian tax number, so you can reap the benefits of the low corporate tax immediately.
Low operational costs
Establishing a start-up can be pretty costly, you have to consider a lot of expenses during the creation of a new business. Of course different type of start-up has different needs, however there are some universal costs which you have to take into consideration.
The costs which you have to take into account, are renting costs and employment costs, as high office rental costs and high employment taxes or wages can quickly erode the profit of a new start-up.
With the company formation Hungary service you can benefit from the low renting costs and from the lower wages and employment taxes as these costs are much lower comparing to other European countries and additional costs like warehouse costs, payroll costs and accountancy costs also can be considered low.
And later if you decide to get a residency in Hungary you can also benefit from the low living expenses such as low utility bills or the cheap lease. Also you have to consider the company formation cost as the cost of the company formation in Hungary is much lower comparing to the cost of the company registration in other European countries.
And the process is very fast so you can register your European start-up within just three days and you don’t even have to leave your home country to do so, as you can do the whole process remotely.
The right location
When choosing the right location one of the most important factor is the market. If you choose to form your start-up based in the European Union, Hungary can be a good choice as you can benefit from the central location and the unlimited access to the European common market.
As within the European Union, Hungary has strong economic relation with Germany, Austria, Poland and Italy as well. To add more to it Hungary is located in the heart of Europe so it is easy to access and you can also travel to several countries from there.
Not to mention that there are several great tourist spots in the country, and the capital, Budapest, is beautiful and full of sights. Due to the country’s geographical capability most of the natural disasters, for example earthquakes or hurricanes does not occur, so you can be safe from them.
