Establishing an Onshore Company
Onshore companies are classic foreign companies based in countries with a standard tax environment. Onshore society, unlike offshore companies do not locate their headquarters to tax havens, but resides in their home economies, where they are kept in the official trade registers. This type of company must pay taxes to keep accounts and send regular reports within the meaning of applicable legislation. Each country has its onshore competitive advantage, some offer a flexible tax rate, whereas others fixed low corporate tax. A nice example of Benefits are the existing agreements for the avoidance of double taxation and the possibility of billing services rendered from abroad to the Slovak company without withholding tax.
Why invest in Hungary?
Company with Limited Liability (Kft)
Company Formation Time: 7 – 14 days
Currency: Forint (HUF or Ft)
Avoidance of double taxation: Yes
Accounting Requirement: Yes
Corporate Taxation: 10 %
Legal System: Civil Law
Minimum Paid-up capital: 100 000 HUF
Minimum directors / shareholders: 1/1
Hungary is located in the heart of Europe and belongs to the Schengen area which is highly important for logistics on land. For importers and exporters handling goods is faster, easier and the detailed planning of any large complex operation can be done by professional courier partners. Hungarians are famous for handling and freight services.
Hungary is also known for its highly educated human resources, computer skills and flawless transportation infrastructure. After the accession of Hungary into the European Union (1 May 2004), the opportunity to access the European market attracts investors from all around the world. The Hungarian government offers many tax advantages and benefits provided to local and foreign investors.
Hungary is the ideal place for companies that offer the opportunity to work in areas that have not been industrially developed. As a benefit for this Hungarian government grants extra and tax benefits to avoid unemployment and achieve high productivity. This technique brings to the country many foreign and multinational companies.