By EWN • 21 December 2021 • 11:07
One of the strongest economies in the world is the European Union’s. It is expected to grow 4.2% in 2021 and 3% in 2022. If your goal is to get unlimited access to the EU market, one factor that will help you is thinking about European company formation.
There are various benefits of the company formation in Europe. Perhaps one of the most important benefit is gaining access to the European common market and having a European VAT number.
If you are thinking on entering to the German market, you have to know that the German customers are more faithful than the European average, which means these customers will rather buy goods and services from a local company.
Unfortunately the corporate tax is higher in Germany than for example in Hungary. But the German market is the strongest market in the European Union with the highest purchasing power due to the more than 80 million potential customers. So if you plan to enter to the German market, you have to consider also other aspects not only the low corporate tax and think about the Germany company registration.
The Austrian market is also one of the strongest European economies due to its great economic environment, but the situation is the same as the Austrian customers are also very faithful, so if you would like to strictly focus on the Austrian market you have to consider the Austria company registration.
But the advantages also extend to a few other beneficial factors – namely, the advantageous corporate tax for your business. The corporate tax is one important aspect to think about before selecting the right country for European company formation.
In Hungary, the corporate tax rate is a mere 9%, compared with Austria’s or Germany’s higher corporate tax rate. The low corporate tax rate in Hungary is one hugely advantageous factor that you can benefit from as a business owner. If you aim to open a European company and you consider low corporate tax as an important aspect, you should consider moving your business to the centre of the European Union. Set up your company in Hungary, enjoy and reap the benefits of the lowest corporate tax in the EU.
What makes the registration process simple is the electronic government system, which also ensures you won’t need to travel when opening a European company. It makes the process uncomplicated, fast and effortless.
To be specific, it takes only a couple of days to complete the incorporation of the new company. Add to this the fact that you get your EU VAT number instantly, and you can see some of the exceptional business benefits that you will receive. There is no need to wait months for the incorporation following the company formation.
In addition to all of this, the 15% personal tax rate in Hungary is also another advantage. It is a very low rate compared with other countries in the EU.
To initiate the process, all that is required is a passport, a tax number and a proof of home address. So the advantages of opening a company in Hungary are clear and the process can be done from abroad without travelling to Hungary.
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