Business immigration in Hungary

Our law firm represents many foreign clients who come to Hungary intending to exploit the business opportunities here as self-employed individuals or owners of business partnerships, or companies. In our country, there are several residence options for such business activities, among which choosing the right one requires careful legal consideration and the help of an immigration attorney. For example, the “residence permit for the pursuit of gainful activity” or the “residence permit to launch an entrepreneurship” can be taken into account, but those who have been staying here for a long time can even apply for a “national permanent residence permit”, which latest allows them to do business freely.

One can claim a residence permit for the pursuit of gainful activity if the object of residency in Hungary is to lawfully perform work in a self-employed capacity for remuneration; or to engage in any gainful activity in the capacity of being the executive officer of a for-profit business association or other legal entity. If the foreigner is engaged in any business activity as the owner or manager of a for-profit business association or legal entity and – besides this activity – he/she plans to perform further work in a traditional job or position, an application for a residence permit for employment has to be filed.
In addition to the general conditions (which are common to all types of residence permits), we would like to draw your attention to the following specialties:

If a foreigner plans to lawfully perform work in a self-employed capacity for remuneration, the purpose of stay should be verified particularly by: a private entrepreneurial license, or a private entrepreneur register number; a business plan for economic activities; a small-scale agricultural producer’s license; a personal service contract, contract for professional services or a use contract entered into as a private individual. If the gainful activity is related to being the owner or executive officer of a for-profit business association or other legal entity, or a member of the executive, representative, or supervisory board of such entity, the purpose of entry and residence can be verified only if the business association or other legal entity employs at least three Hungarian citizens or persons with the right of free movement and residence in full-time employment for at least six consecutive months, legitimately, without any interruption; or the approval of the residency of the applicant in Hungary is essential for the business association, and the business plan enclosed with the application ascertains that the business association will prosper enough to ensure the applicant’s subsistence.

A residence permit to launch entrepreneurship can be obtained by foreigners who own a valid residence permit for research or studies and can prove the completion of the research activity or studies. Although one can set up a business only if the planned activity will correspond to the level and kind of research or studies completed.

Apart from the mandatory enclosures, needed for all residence procedures, for getting this type of residence card the foreigner must attach documents to the application evidencing that she/he indeed intends to start a business. It can be any credible proof that the applicant launching a business in Hungary – e.g. a company registration application registered and received by the court of the company’s registry, showing the foreigner as the company’s managing director or member having the right to represent the company. The validity of this residence card shall be a maximum of 9 months.

In our opinion, obtaining a residence permit for gainful activity is one of the most complicated, however, if someone receives it and starts a well-functioning business, it can establish the entire family’s stay and settlement in Hungary, as close family members can join the person running the business with a family reunification residence card.