A recruitment company in Hungary can engage in a number of activities and provide services for a wide range of clients, including overseas entities. This is why investors who want to open a recruitment company in Hungary have the possibility to attract both local and foreign companies as their clients.
Our company registration experts in Hungary can help you open a recruitment company and start your business in the human resources sector.
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A recruitment company’s profile
Hungary is a valuable destination for investments that hold important potential in various business fields. Foreign recruitment companies can provide services for the external and internal market. Hungarian employers who want to hire talented foreign employees will most often request the services of a recruitment agency that can take care of the formalities for foreign employment in the country.
A recruitment agency in Budapest or in any other Hungarian city will usually provide services both for international and local recruitment. Human resources specialists are trained to recruit for all types of positions, from company directors and CEOs to managers and specialists.
A Hungarian recruitment company will focus its recruitment activities on all of the important business fields and industries, such as financial services, automotive, IT, construction, food and beverage production and distribution and others.
This type of company will determine the client company’s needs, will perform pre-screenings and screenings for potential candidates, will interview those selected for the job and will be present at the final interview and selection with the client company.
The company registration process in Hungary is relatively simple and in line with the procedures used in other European countries. However, if you are in need of assistance for communicating with the Hungarian authorities or for submitting the necessary forms and documents, our team of agents in Hungary can help.
Is it necessary to apply for a license?
Yes, investors who open a Hungarian company as a recruitment agency must obtain an adequate license. In order to do so, the company must meet several standards, concerning the legal entity under which the business in incorporated and the specialists hired within the company.
In the list below, our consultants in company formation in Hungary have gathered some conditions a recruitment agency should comply with in order to be able to obtain the license:
- the company must carry out one (or more) of the activities stipulated by the Standard Classification of Economic Activities (TEAOR 08), Sub-sectors 78.1 and 78.10 – activities of employment placement agencies;
- it is also necessary to have at least 1 employee who has professional qualifications and expertise in the sector (the person can be a Hungarian national or a foreigner);
- the process of obtaining the license can take around 30-60 days;
- provided that the company will hire a foreign employee who has obtained his/her qualifications in the field from foreign universities, the certification of documents can take around 90 days.
The employment contract in Hungary
The Hungarian employment law provides that any employment relationship between an individual and a company owner is concluded in a written employment agreement. This document will specify the nature of the work, the remuneration and the free days the employee in Hungary is entitled to.
This document can be drafted by the recruitment company. The employment contract can also specify a probation period, although this is not mandatory. However, when this applies, this period of time can’t be longer than 90 days. It must also be noted that full-time employment in Hungary is defined as 40 hours of work per week.
Provided that the employee must work overtime, the excess time will be paid at 150% of the standard hourly rate. There are also many regulations concerning the termination of employment and our consultants in Hungarian company formation can present these rules as well.
Recruitment companies can not only arrange for employment but they can also observe and document the evolution of the individual within the company. For more detailed information about the types of companies in the country and the company registration procedure you can address our experts in Hungary.
In some cases, recruitment agencies can provide personnel leasing services, through which employees can be relocated for a determined period of time in the company that hired the recruitment agency.
The Hungarian employment laws
Concerning the employment of both local and foreign employees in Hungary and the registration of recruitment agencies, investors must abide by the provisions of several rules of law, such as:
- Act IV of 1991 (referring to employment and unemployment matters);
- the Government Decree No. 118/2001 (the conditions required to open a company in Hungary as a recruitment agency and carry out recruitment-related activities);
- the Government Decree No. 323/2011 (the obligations of the Hungarian Labor Office);
- Act XXII of 1992 (the Labor Code).
Please know that the process of company registration in Hungary is the same for recruitment agencies that will engage in national activities as it for the ones that will carry out EU/EEA recruitment activities. There aren’t any specific sectoral regulations concerning the provision of services within these structures.
If you will register a recruitment company, you can rely on our accountants in Hungary for any matter concerning the accounting procedures that must be implemented in your company.
Matters such as payroll, calculating taxes due, bookkeeping, submitting tax reports, etc., can all fall under the supervision of our qualified team of accountants, who can provide tailored services based on the size of the company.
Please contact our consultants in Hungarian company formation for more details on the incorporation process applicable to a recruitment company.