Open a Corporate Bank Account in Hungary

Open a Corporate Bank Account in Hungary | Bestar

Hungary Corporate Bank Account Guide

Opening a corporate bank account in Hungary involves several key steps and requires careful preparation, especially for foreign companies. Here's a breakdown of the process and important considerations:

Legal Requirements and Mandatory Timelines:

• Business Registration: You must first register your business in Hungary.

• Mandatory Account: Hungarian law requires all registered companies to open a corporate bank account with a local financial institution within eight days of their formation. This account is essential for financial transactions, including tax payments and operational costs.

Key Documents Typically Required:

• Company Founding Documents:

  • Articles of Association (Deed of Foundation).

  • Certificate of Incorporation (not older than 30 days in some cases).

  • Company court certificate (company registration number, tax number, statistical code) - unless the tax number and statistical code are on the certificate of incorporation.

• Identification and Authorization:

  • Passport or other valid travel documents of the company's representatives (directors, authorized signatories).

  • Notarized specimen signatures of the authorized signatories.

  • Power of Attorney if someone is acting on behalf of the directors.

• Proof of Registered Office Address.

• Tax-Related Documents:

  • Application for tax registration (unless the tax number and statistical code are on the certificate of incorporation).

  • Certification of tax number (in some cases, as an authentic act).

• Ownership Structure:

  • Chart of the entire ownership structure, detailing direct and indirect owners, ownership stakes, names, addresses, and registered offices. For non-resident owners, you'll likely need supporting documents like a certificate of registry (not older than 30 days) or the charter document.

• Other Potential Requirements:

  • Business plan.

  • Contracts with Hungarian partners, suppliers, or clients.

  • Rental agreement for an office, shop, or warehouse.

  • Letters of recommendation from existing banks.

  • Hungarian Personal Tax Number and Domicile Address of the director (if available).

  • Origin of funds to be credited to the account.

  • Planned transactions and their frequency.

  • FATCA/CRS declarations.

Steps to Open a Corporate Bank Account:

1. Preparation: Gather all the necessary documents. Ensure they are translated into Hungarian by a certified translator if required, and some may need to be apostilled.

2. Choosing a Bank: Consider factors like:

   • Reputation and Stability: Look for well-established banks.

   • Services Offered: Ensure they meet your business needs (e.g., multi-currency accounts, online banking, international transfers).

   • Fees and Charges: Compare account maintenance fees, transaction costs, and transfer fees.

   • Language Support: Check if they offer services in English.

   • Accessibility: Consider the branch network and online banking platform.

3. Application Process:

   • Contact the bank to inquire about their specific procedures and document requirements.

   • Submit the application form and all required documents. This may involve sending documents online initially.

   • Be prepared for an interview (in person or online). Some banks require company representatives to be physically present for the account opening.

4. Compliance Checks (KYC and AML): Banks will conduct thorough due diligence to verify the company, its owners, and the source of funds, adhering to anti-money laundering (AML) and Know Your Customer (KYC) regulations. These checks can be stringent, especially for foreign companies.

5. Account Activation: Once the compliance checks are successful, your account will be activated.

Challenges for International Clients:

• Stringent Compliance Procedures: Non-residents often face more detailed background checks.

• Language Barriers: While some banks offer English services, it's not always guaranteed.

• Travel Requirements: Some banks may require in-person visits for account opening.

• Establishing Ties to Hungary: Banks prefer clients with demonstrable connections to Hungary (e.g., local partners, suppliers, physical presence).

Recommended Banks in Hungary (for Corporate Accounts):

Some of the major and popular banks in Hungary include:

• OTP Bank: The largest bank in Hungary with an extensive network and services in English.

• K&H Bank: A well-regarded bank with a range of corporate services and online banking.

• Erste Bank Hungary: Part of a larger European group, offering comprehensive services. Note that their services are mainly in Hungarian.

• Raiffeisen Bank Hungary: Another international bank with a presence in Hungary.

• UniCredit Bank Hungary: Part of a major European banking group, serving various customer segments.

• MBH Bank: A significant Hungarian financial institution with a wide network.

Fintech Alternatives:

• Wise (formerly TransferWise): Recognized by the Hungarian tax authority as an official account, offering multi-currency accounts and international transfers.

• Banq Global: Specializes in providing business accounts with local IBANs in multiple countries, including Hungary, with a fully online application.

• Satchel: An EMI offering online business account opening for both EU and non-EU residents.

Important Considerations:

• You will likely need at least one HUF (Hungarian Forint) account for tax payments and salary disbursements.

• Reporting Foreign Bank Accounts: If your Hungarian company opens accounts with foreign banks, you must report these to the Hungarian Company Registry and the Tax Authority within 15 days. Failure to do so can result in fines.

Opening a corporate bank account in Hungary requires careful attention to detail and adherence to local regulations. Being well-prepared with the necessary documentation and understanding the bank's requirements will help ensure a smoother process.

How Bestar can Help

Bestar can be invaluable when opening a corporate bank account in Hungary, especially for foreign companies. We bring local expertise and can navigate the complexities of the Hungarian legal and financial landscape. Here's a detailed breakdown of how we can help:   

1. Navigating Legal and Regulatory Requirements:

• Expert Knowledge: We possess up-to-date knowledge of Hungarian company law, banking regulations, and compliance requirements, including the specific documents needed and the mandatory timelines.   

• Ensuring Compliance: We can guide you through the necessary legal steps for business registration, which is a prerequisite for opening a bank account. We ensure all your company formation documents are in order and meet Hungarian legal standards.

• Understanding Bank-Specific Requirements: Each bank may have slightly different documentation and procedural requirements. Bestar is familiar with the practices of various Hungarian banks and can help you choose one that best suits your needs and has a smoother application process for foreign entities.

2. Streamlining the Documentation Process:

• Document Checklist and Preparation: We provide a clear and comprehensive checklist of all required documents, ensuring you don't miss anything crucial. We can also advise on the correct format, notarization, and apostille requirements.

• Translation Services: We can arrange for certified translations of your documents into Hungarian, which is often a requirement.   

• Assistance with Complex Documents: We can help you understand and prepare complex documents like ownership structure charts, business plans, and declarations.

• Liaising with Notaries and Authorities: We can assist with notarizing documents and submitting them to the relevant Hungarian authorities.

3. Facilitating Communication with Banks:

• Initial Contact and Introductions: We can initiate contact with banks on your behalf, schedule meetings, and act as a point of contact.

• Language Barrier Assistance: We can bridge the language gap by communicating with the bank in Hungarian, ensuring clear understanding and avoiding misunderstandings.

• Negotiation of Terms and Fees: We may be able to assist in understanding and potentially negotiating account terms and fees.

• Guidance During Interviews: If an in-person or online interview is required, we can prepare you for the questions and ensure smooth communication.

4. Saving Time and Reducing Stress:

• Efficiency: Our expertise and established networks can significantly speed up the account opening process, allowing you to focus on other aspects of your business.

• Avoiding Costly Mistakes: Incorrect documentation or procedures can lead to delays and additional costs. Bestar helps you avoid these pitfalls.   

• Peace of Mind: By entrusting the process to Bestar, you can have peace of mind knowing that your application is being handled correctly.

5. Providing Local Insights and Support:

• Choosing the Right Bank: We can offer insights into the reputation, services, and suitability of different Hungarian banks for your specific business needs.

• Understanding Local Banking Practices: We can explain local banking customs and practices.

• Ongoing Support: Bestar offers ongoing support with your banking needs even after the account is opened.

In summary, Bestar acts as your local expert and guide, simplifying the often complex process of opening a corporate bank account in Hungary. We ensure compliance, streamline documentation, facilitate communication, save you time and money, and provide valuable local insights. This is particularly beneficial for foreign companies unfamiliar with the Hungarian legal and financial system.   

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