Opening a representative office of a foreign company in Hungary
IST Hungary offers comprehensive services for opening an official representative office for your business in Hungary. This is an ideal solution for companies that want to explore the European market without setting up a full-fledged legal entity.
Key advantages of representation in Hungary
- Minimal costs – does not require authorized capital and is easier to register than a branch office
- Market testing – opportunity to assess the potential of business in the EU without serious investments
- Direct contacts – establishment of business relations with European partners
- Tax benefits – the representative office does not conduct commercial activities, which simplifies taxation
- Business support – access to developed infrastructure and favorable geographical location of Hungary
Hungary ranks first in Central Europe in terms of foreign investment growth (15% growth in 2023).

How does a representative office differ from a branch office?
The representative office in Hungary is a non-profit unit that:
01
Does not conduct independent economic activities
02
Does not receive income on the territory of Hungary
03
Serves as a marketing, market research and customer support organization
04
Does not require complex financial reporting
Important:
- A representative office is not a legal entity
- The registration period is only 3-5 working days
- Does not require significant maintenance costs
Taxation of a representative office
Since the representative office does not carry on business:
- Does not pay corporation tax
- Is not a VAT payer
- Taxable only on hospitality expenses (if any)
A branch or subsidiary will need to be registered in order to conduct business activities.
The process of opening a representative office (4 steps)
- Opportunity analysis - advice on the optimal business structure in Hungary
- Document preparation - certification and translation of the parent company's constituent documents
- Registration in the Commercial Register - making a record of the representative office
- Visa processing - assistance in obtaining work permits for employees
Required documents
- Certificate of incorporation of the parent company
- Articles of Association of the parent organization
- Full list on request...
Why choose IST Hungary?
- Experts in Hungarian business law - know all the nuances of registration
- Support at all stages - from the first consultation to the opening of the office
- Time saving - average registration time is 5-7 working days
- Customized solutions - we choose the optimal structure for your business
Ready to enter the European market?
Contact us and we will help you to open a branch office in Hungary quickly and without unnecessary complications!
P.S. Opening a branch office can be combined with either a 3-year Hungarian residence permit for business purposes or an investor's residency for 10 years - ask our specialists about additional options.
P.S. Opening a branch office can be combined with either a 3-year Hungarian residence permit for business purposes or an investor's residency for 10 years - ask our specialists about additional options.
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