Foreign-owned companies play a significant role in the Hungarian economy. Although their share within the total corporate sector has declined in recent years, they still generate nearly 50% of the added value and employ about a quarter of the Hungarian workforce. Moreover, a growing trend is emerging where more and more investors opt for registered office services right from the moment of company establishment.

According to the latest data analyzing the foreign ownership of Hungarian companies by country, Ukraine ranks at the top of the list. The number of companies linked to Ukraine has been steadily increasing for years. Germany and Austria, Hungary’s two traditional trading partners, previously occupied the top two positions but have now been pushed back, with projections suggesting further decline in the coming years. In general, the number of Western European-affiliated companies is decreasing in Hungary, while businesses connected to neighboring countries are on the rise. Sector-wise, trade stands out the most, but there is also significant international interest in real estate transactions, consulting, and construction.

When it comes to company formation, more entrepreneurs are turning to registered office service providers even before the establishment process. This is largely due to the fact that these providers have expanded their portfolios to include services that ease the burden of company formation for future owners or executives. Our company, Company Assistant Service Kft., has launched a specialized service package tailored to the needs of foreign investors, along with an English-language website presenting these offerings. Our experience shows that there is strong demand for supportive services such as assistance with bank account opening, company registration processes, and acting as a delivery agent. Additionally, the exemption from local business tax is an added advantage that can significantly reduce costs for a newly established company.

Overall, the increasing presence of foreign businesses and employees contributes to the diversification and growth of the Hungarian economy, particularly in key sectors such as the automotive and manufacturing industries. Professionally prepared registered office service providers, such as our company, can offer the necessary support to facilitate this expansion.

Contact TAX FREE ZONE Hungary.

prepared by TAX FREE ZONE Hungary.