How to Start a Sole Proprietorship in Hungary: A Comprehensive Guide

Table of Contents

Description

What is it?

A Sole proprietorship is a type of enterprise that is owned and run by a single person and in which there is no legal distinction between the owner and the business entity.

Who needs it?

This is ideal for freelancers, entrepreneurs, or anyone looking to start their own business.

Procedure

  1. Choose your business name. Make sure it fits the guidelines set by the Hungarian Government.
  2. Apply for an Entrepreneurial License at the local government office of your chosen business location.
  3. Once you receive your license, register your business with the Hungarian Tax Authority (https://nav.gov.hu/en) .
  4. Open a business bank account.
  5. Register for VAT.
  6. Ensure that you are compliant with local and national laws and regulations pertaining to your particular business.

Required Documents

  • Personal Identification Document
  • Proof of address
  • Entrepreneurial License
  • Business Bank Account Details
  • VAT Registration Document

Providers that can do it for you

(We are currently curating the best providers. If you are or know a provider, please contact us or edit the page directly)

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Additional details

Before registering your sole proprietorship, it’s essential to understand the liability you are assuming as the sole owner. In the eyes of the law, your business and you as an individual are the same thing, so any business debts or liabilities are also your personal debts and liabilities. This often includes financial obligations and any legal actions taken against your business.

On the positive side, sole proprietorships are much easier and less costly to set up compared to other business structures. They are also subject to fewer regulations which could benefit businesses in their early stages.

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