Suggestions on European country for a holding company
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I think this is the key selling point for the KFT. Do you still need to deposit around $9K as capital contribution for the company? If it's a pure holding (no trading) and it's owned and managed by a foreign single shareholder director are you required to hire somebody in HU?
@AMD : The bank accounts were arranged by 2 local lawyers. I travelled to Budapest to meet the bankers, in both cases a 35/45 minutes meeting, to fill the documents and I walked out the bank with my account number ready and my internet banking access working. I lived in Belgium at that time.
@marzio : minimal capital is still around 9K, but you do not need to deposit it before company formation. You just need to commit to pay it after the company is formed in a document you sign in front of a lawyer. You are not required by law to hire someone,︀ even if it may seem wise to do so, to avoid other countries claims of︁ lack of substance.
@marzio : minimal capital is still around 9K, but you do not need to deposit it before company formation. You just need to commit to pay it after the company is formed in a document you sign in front of a lawyer. You are not required by law to hire someone,︀ even if it may seem wise to do so, to avoid other countries claims of︁ lack of substance.
The fact that you don't need to deposit the contribution when forming the company is nice since you will deposit money anyway since it's a holding company, right?
I guess if you are tax resident in Dubai or other free/territorial tax country nobody will come after︀ you claiming the lack of substance if you are obeying hungarian's laws.
How much it︁ was to form the company and open the bank account with those local lawyers?
I guess if you are tax resident in Dubai or other free/territorial tax country nobody will come after︀ you claiming the lack of substance if you are obeying hungarian's laws.
How much it︁ was to form the company and open the bank account with those local lawyers?
Yes, you deposit money anyway at some point, so it's convenient not having to do it upfront. Further, payment in kind is allowed, so allocation︀ of shares can be enough to meet the standard.
Of course, if you leave in︁ a tax free country (which by the way I do, being the happy owner of︂ an Emirates residency visa due to a free zone company) they don't care. Obeying hungarian︃ laws is largely enough.
Formation costs were really affordable, for both on the sunny side︄ of 2000 €, one year of registered office and service agent (required for official notifications)︅ included.
Of course, if you leave in︁ a tax free country (which by the way I do, being the happy owner of︂ an Emirates residency visa due to a free zone company) they don't care. Obeying hungarian︃ laws is largely enough.
Formation costs were really affordable, for both on the sunny side︄ of 2000 €, one year of registered office and service agent (required for official notifications)︅ included.
Remember. It’s also about the company that’s owned by the holding company.
Say you have a company in France. France has 28% WHT according to a quick Google search. Now you register a company in Hungary or Cyprus as a holding for the French company - to reduce the WHT to 0% (parent-subsidiary directive and holding without WHT). I would expect France to question the substance of the holding company, they won’t want to let go of their 28% cut so easily.
Say you have a company in France. France has 28% WHT according to a quick Google search. Now you register a company in Hungary or Cyprus as a holding for the French company - to reduce the WHT to 0% (parent-subsidiary directive and holding without WHT). I would expect France to question the substance of the holding company, they won’t want to let go of their 28% cut so easily.
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