Hungary offers a practical pathway for Indian entrepreneurs to gain European residency. The Hungarian business permit program allows individuals to establish a business in the country while securing residency for themselves and their families. This option is especially appealing for those seeking access to the European market, simplified tax systems, and cost-effective residency solutions.
Abhay Jaiswal, Investment Programs Expert at Immigrant Invest explains the permit, explains Hungary Business Residence Permit benefits, and the steps to obtain it.
What is Hungary Residence Permit for Entrepreneurs
Hungary residency by business launching allows foreign entrepreneurs to start or invest in a company in Hungary and gain a residence permit in return. This permit is granted initially for one year and can be renewed. It provides the holder and their family members with residency rights, access to healthcare, and the ability to travel freely within the Schengen Area.
This program also opens doors to permanent residence by investment after fulfilling certain conditions, making it an attractive option for entrepreneurs seeking long-term settlement in Europe.
The process requires establishing a business entity in Hungary, demonstrating its viability, and fulfilling residency requirements, such as staying in Hungary for a minimum duration each year.
9 Benefits of Business Immigration to Hungary for Indian Citizens
Access to the European market. Hungary provides a gateway to trade and business in the EU. Entrepreneurs can connect with over 500 million consumers in member states.
Visa-free Schengen travel. A Hungarian residence permit allows travel across 26 countries in Europe without additional visas.
Low operational costs. Hungary offers affordable labour, office spaces, and infrastructure compared to Western European nations.
Business-friendly environment. Hungary has one of the lowest corporate tax rates in Europe at 9%. This makes it attractive for small and medium enterprises.
Family inclusion. Entrepreneurs can include their spouse and children in the application, ensuring they can live and study in Hungary.
Strong infrastructure. With advanced transport networks, modern office facilities, and IT infrastructure, Hungary is ideal for setting up businesses.
No language barrier for business. Many businesses in Hungary operate in English, simplifying operations for Indian entrepreneurs.
Strategic location. Hungary is centrally located in Europe, making it easy to connect with Western and Eastern Europe markets.
Potential path to EU citizenship. After gaining permanent residency and meeting specific requirements, entrepreneurs can apply for Hungarian citizenship.
Eligibility Criteria for Indian Citizens
Indian entrepreneurs must meet specific criteria to qualify for a Hungarian business permit:
Establish a Hungarian company. Register a business entity, such as a private limited company, in Hungary. Entrepreneurs should expect to invest around €10,000 to 20,000 initially, depending on the business type and scope.
Provide business proof. Present a business plan demonstrating viability and contribution to Hungary’s economy.
Show financial stability. Prove sufficient funds for business operations and personal living expenses.
Meet residency requirements. Commit to staying in Hungary for a minimum duration annually.
Have clean records. Submit a police clearance certificate to confirm no criminal background.
Health insurance. Ensure comprehensive health coverage for the applicant and family members.
How to Get Hungary Business Permit for Indians
Register a company in Hungary. The first step is registering a business with the Hungarian authorities. Choose a legal structure, such as a Kft, private limited company, and open a local bank account.
Prepare required documents. Gather the necessary paperwork, including:
passport copies;
business plan;
proof of funds;
health insurance;
clean criminal record;
company registration documents.
Submit the application. File the residence permit application through the Hungarian Immigration Office. Include all required documentation and pay the processing fee.
Attend an interview. Applicants may be required to attend an interview with immigration officials to discuss the business and residency plans.
Receive the residence permit. Upon approval, the residence permit is issued for one to two years. Renewal is straightforward if business and residency requirements are maintained.
Apply for family reunification. After obtaining a residence permit, entrepreneurs can submit applications for their family members to join them in Hungary.
General Information on Doing Business in Hungary
Hungary is one of the most business-friendly countries in Central Europe. Its strategic location, skilled workforce, and competitive tax system make it an attractive destination for entrepreneurs and investors. The government actively supports foreign investments through incentives and simplified procedures for business registration.
Key facts about Hungary’s business environment. Hungary offers one of the lowest corporate tax rates in Europe, currently at 9%. This makes it a cost-effective choice for businesses looking to maximise profits.
Hungary has a highly skilled and educated workforce, particularly in fields like engineering, IT, and finance. Labour costs remain competitive compared to Western Europe.
Situated in the heart of Europe, Hungary provides easy access to both Western and Eastern European markets. Its well-developed infrastructure, including airports, highways, and railways, ensures efficient logistics and connectivity.
Registering a business in Hungary is straightforward, and the process can be completed in as little as a week. Entrepreneurs can choose from various legal forms, including the popular Kft, private limited company.
Popular business sectors in Hungary:
IT and technology. Hungary is a hub for software development, IT outsourcing, and fintech companies.
Manufacturing. The automotive and electronics industries are among Hungary’s largest export sectors.
Tourism and hospitality. With its rich culture and historic landmarks, Hungary attracts millions of tourists annually.
Agriculture and food processing. Hungary’s fertile land supports a thriving agricultural sector, offering opportunities for export and domestic sales.
Legal and tax requirements. Businesses in Hungary must register with the Hungarian Court of Registry and obtain a tax number from the National Tax and Customs Administration.
Hungary’s double taxation treaties with numerous countries, including India, help avoid double taxation on profits.
Hungary’s favourable business environment, combined with the opportunities provided by the residence permit for entrepreneurs, makes it an ideal destination for Indian investors aiming to establish a presence in Europe.
Conclusion
Hungary’s business permit is an efficient and cost-effective way for Indian entrepreneurs to secure European residency. It provides access to the EU market, low tax rates, and a path to long-term residence or citizenship. By following the outlined steps, high-net-worth individuals from India can establish a business in Hungary and unlock new opportunities in Europe.
