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Relocate your UK Company to Hungary after Brexit

Relocate your UK Company to Hungary after Brexit

Numerous businessowners who have incorporated a company in the UK, regardless if they were local residents or foreign investors, started considering relocating their companies in other European countries when Brexit was decided. As of 2021, the UK is formally no longer a part of the European Union (EU) and this has multiple consequences in regards to trading between the UK and the EU, on various import- export procedures, on taxes and others. 

Due to this, the tendency to relocate a UK company to another EU country has become more and more popular. If you want to relocate your UK company to Hungary after Brexit, you can always address on our team of specialists, who can present the entire process and the advantages of investing here. 

How can one relocate a business to Hungary?

The process of relocating a business actually refers to closing a business down in the country where it is currently operating, by taking all the legal steps (de-registration of the business with the Trade Register, paying all the taxes associated with the respective business activity) that ensure that the respective company will no longer be active on the respective market and that the businessowner is, thus, no longer bound by various formalities regarding his or her business activity in the said country. 

If you want to relocate your UK company to Hungary after Brexit, the above mentioned steps have to be completed first. After this, you can easily start the process of company formation in Hungary. You can also register the same company type under which you developed a business activity in the UK

According to the Hungarian commercial legislation, a local or a foreign investor can open a Hungarian company as one of the following: private company limited by shares or public company limited by shares, general or limited partnership, limited company, branch office or a representative office (the latter is a structure that can’t be used for commercial purposes). If you need advice on how to register any of these legal entities or information on the advantages of each structure, do not hesitate to address to our team of consultants in company registration in Hungary

Why relocate a UK business in Hungary?

Businessmen who want to relocate their company face numerous challenges such as making a decision on the new location in which they should invest. Matters concerning taxation, wages, the quality of life, the business opportunities available in the respective business sector, political stability, and numerous others are always important into taking this decision. When we refer to the reasons to open a company a company in Hungary, the following should be taken into consideration: 

  • Hungary has been a member state of the EU since 2004, a period of time which has allowed it to change its views to the ones available in the Western Europe and this can mean that the investor will find there similar values with regards to business, investment, taxation and others;
  • • the corporate income taxation should be of interest when you relocate your UK company to Hungary after Brexit, as in Hungary, the corporate tax is of only 9%, while in the UK is of 19%;
  • • the taxation on the income of individuals in Hungary is charged at the standard rate of 15%, while in the UK, taxes are charged based on the income, but most of the individuals gain GBP 12,501 – GBP 50,000, which is charged at a rate of 20%;
  • Hungary was included on the World Bank’s Ease of Doing Business as the 52nd economy in 2019 (a study which analyzes the performance of more than 190 jurisdictions);
  • • depending on the economic activity developed here, investors can benefit from tax exemptions of up 50%. 

How can one register a company in Hungary?

If you want to relocate your UK company in Hungary after Brexit, you should know that the country has implemented the Point of Single Contact system, created under the EU’s regulations regarding the procedures that investors should follow when starting a business. This system implemented simplified procedures, which are mostly the same at a EU level. 

So, when opening a Hungarian company, you should follow five basic steps: prepare the company documents, certified and signed in front of a public notary or attorney (this is done in accordance with the selected company type) and open a corporate bank account at a local commercial bank.

Then, one can formally register the company with the Hungarian Court of Registry by submitting the documents prepared with the specialist in company formation in Hungary. Here, the investors can follow the standard registration or the simplified version and, for in-depth information, we invite you to contact our consultant in company registration in Hungary