In recent years, the scale of investments made by Chinese enterprises in Hungary has continued to grow. The overview of Chinese investments in Hungary can be summarized as follows:
I. Investment Scale and Growth
In recent years, the investment scale of Chinese enterprises in Hungary has continued to increase. For example, in 2020, Chinese investment in Hungary rose against the trend, with a total of 10 Chinese investment projects landing in the year, amounting to approximately 664 million euros. For the first time, China became Hungary's largest source of foreign investment. By the end of 2020, China's cumulative investment in Hungary exceeded 5.5 billion US dollars.
Entering 2024, the investment of Chinese enterprises in Hungary continued to accelerate. According to relevant data, as of October 2023, the cumulative amount of investment projects that have been landed or officially announced by Chinese enterprises in Hungary reached 19.3 billion euros, an increase of 5 times compared to the beginning of 2019.
II. Main Investment Fields
Chinese investments in Hungary span multiple fields, including but not limited to renewable energy, electric vehicle manufacturing, battery industry, trade and logistics, etc.
Especially in the battery industry and electric vehicle sector, Chinese investments are particularly prominent. For instance, renowned Chinese companies like CATL and BYD have invested in Hungary, promoting the development of the local new energy vehicle industry.
In Hungary, Chinese enterprises have invested widely, including well-known companies such as Yantai Wanhua Group, Huawei, and ZTE. Moreover, they have ventured into various industries and fields, such as the construction of the China-Europe Commerce and Logistics Cooperation Park and the China-Hungary Boster Economic and Trade Cooperation Zone. These investments not only boost the local economy but also deepen China-Hungary cooperation in trade and logistics. Since 2020, there has been a notable increase in Chinese investments in green energy and the new energy vehicle industry in Hungary. The participation of companies like BYD and Yanfeng Automotive has further driven the upgrading and transformation of Hungary's automotive industry. The diverse and deeply integrated investments made by Chinese enterprises in Hungary have positively contributed to the country's economic growth and industrial upgrading, while also opening up new pathways for their international development. As global economic integration continues to deepen, it is expected that Chinese investments in Hungary will continue to grow.
III. Cooperation Achievements and Impact
Significant achievements have been made in investment cooperation between China and Hungary. For example, the Hungarian section of the Hungary-Serbia railway is expected to be completed by mid-2025, which will greatly reduce travel time between the capitals of the two countries and promote regional economic connectivity.
The investments made by Chinese enterprises have not only created a large number of jobs in Hungary but also driven local economic growth and industrial upgrading. Simultaneously, China and Hungary have engaged in deep cooperation in areas such as technological innovation and talent cultivation, laying a solid foundation for the long-term development of both countries.
IV. Future Prospects
With the further advancement of the "Belt and Road" initiative and the continuous development of relations between China and Hungary, it is expected that Chinese investments in Hungary will continue to maintain a growth trend.
In the future, China and Hungary are expected to engage in deeper cooperation in more fields, jointly promoting the comprehensive development of bilateral relations and the prosperity and stability of the regional economy.
The advantages enjoyed by Chinese companies registering companies in Hungary mainly include the following points:
Tax incentives: Hungary has a corporate income tax rate of 9%, which is one of the lowest tax rates in Europe. Such tax policies are conducive to the development and profitability of enterprises.
Geographical location advantage: Hungary is located in the heart of Europe, with convenient transportation, making it an important hub connecting Eastern and Western Europe. Its superior geographical location helps enterprises expand into the European market.
Stable political environment and sound legal system: Hungary has a relatively stable political environment and a well-established legal system, providing a favorable business environment and legal protection for enterprises.
Developed infrastructure: Hungary boasts a developed infrastructure, including a modern transportation network, communication network, and energy infrastructure, facilitating convenient conditions for enterprise operations.
Abundant labor resources: Hungary has a large number of high-quality, highly educated professionals, and the labor cost is relatively low, which is conducive to reducing enterprise operating costs. Especially in fields such as engineering, IT, pharmaceuticals, and economics, there is a rich reserve of professionals with higher education.
Convenient registration procedures: The procedure for registering a company in Hungary is relatively simple and fast, and government departments are efficient, enabling enterprises to complete registration and start operations more quickly.
EU membership status: As an EU member state, companies registered in Hungary can enjoy trade facilitation and market access within the EU, further expanding business opportunities.
Intellectual property protection: The Hungarian government attaches great importance to intellectual property protection and provides intellectual property protection services to foreign investors, ensuring effective protection of enterprises' innovation achievements.
In summary, Chinese enterprises registering companies in Hungary can enjoy multiple advantages, which are conducive to the long-term development of enterprises in the Hungarian and European markets.
Procedures for Chinese Enterprises to Carry Out Investment Cooperation in Hungary
01 Receiving Organizations
Depending on the form of business registration, foreign enterprises need to register with the local government, the Registration Court of the Hungarian Economic Court, tax authorities, the Central Statistical Office, social security authorities, and the Chamber of Commerce.
02 Forms of Establishment
Foreign individuals or enterprises can establish representative offices, branches, and subsidiaries in Hungary.
03 Main Procedures for Registering a Business
● Prepare documents: including company information, notarized and certified parent company information (such as a copy of the business license), information on the legal representative of the Hungarian company, a shareholder list, and share allocation.
● If the subsidiary is likely to employ more than 50 employees, the net turnover of the first fiscal year may exceed 300 million forints, or the parent company needs to provide consolidated statements, a local Hungarian auditor must be employed. When registering the company, information about the auditing company and auditor needs to be submitted. It is also necessary to provide all payment accounts of the company, as well as the names and headquarters of the providers that manage these account payment services. The registered capital of the company must be determined in forints.
● Submit an electronic registration application: within 30 days of completing the company's articles of association, submit it to the competent Hungarian registration court. Due to the complexity of Hungarian laws and the requirement that documents must be written in Hungarian, it is recommended that Chinese enterprises entrust professional institutions to handle relevant procedures.
● Registered capital requirements: The registered capital of a limited liability company shall not be less than 3 million forints, the share capital of a listed joint-stock company shall not be less than 20 million forints, and the share capital of a non-listed joint-stock company shall not be less than 5 million forints.
04 Matters to Complete After Submitting the Company Registration Application
(1) Register with the tax authority at the company's headquarters within 15 days.
(2) If an EU tax number has not been applied for when submitting the company registration application, and the taxpayer wishes to establish business contacts with taxpayers in EU member states, they need to request an EU tax number when registering with the tax authority.
(3) Branches and direct trade representative offices of foreign enterprises shall submit documents proving their relationship with foreign enterprises, documents not earlier than 90 days, and valid Hungarian translations to the tax authorities within 15 days after receiving notification of their tax number.
(4) If the business requires a licensed business, after obtaining the necessary license, it needs to be reported to the tax authority and submitted to the company court within 15 days after the license is announced. Companies during the registration process must complete the registration before carrying out business activities.
(5) Develop accounting regulations (or accounting systems) and other operational regulations that comply with accounting standards.
(6) Fulfill accounting obligations, tax payment requirements, and financial statement requirements.
Our company has strategic cooperation companies in Hungary. If you have development needs in Hungary, require company registration, recruitment, and other related financial and tax-related service support, please feel free to contact us. Contact information:
Email: winnychen@one-hr.com.cn
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