April 29, 2014


How to start business?

There are 10 steps to starting a business:

1.      Write a Business Plan

2.      Get Business Assistance and Training

3.      Choose a Business Location

4.      Finance Your Business

5.      Determine the Legal Structure of Your Business

6.      Register a Business Name

7.      Get a Tax Identification Number

8.      Register for State and Local Taxes

9.      Obtain Business Licenses and Permits

10.    Understand Employer Responsibilities


What is a business plan?

A written document that describes in detail how a new business is going to achieve its goals. A business plan will lay out a written plan from a marketing, financial and operational viewpoint. Sometimes a business plan is prepared for an established business that is moving in a new direction.


What does innovation mean?

Technically, “innovation” is defined merely as “introducing something new.”

Innovation generally refers to renewing, changing or creating more effective processes, products or ways of doing things.

For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services. Innovation can be a catalyst for the growth and success of your business, and help you adapt and grow in the marketplace.

Being innovative does not mean inventing; innovation can mean changing your business model and adapting to changes in your environment to deliver better products or services. Successful innovation should be an in-built part of your business strategy and the strategic vision, where you create an environment and lead in innovative thinking and creative problem solving.


What is the procedure for starting business in Hungary?

In very brief summary:

  1. Hire lawyer who represents the company, creates company deeds, and prepares other legal documents.
  2. Pay at least 50% of subscription amount (at least HUF 250,000) into the bank account designated at the time of subscription.
  3. Apply for registration at the Registration Court (simplified electronic registration)
  4. Register for social security


What is an SME?

“SME” stands for small and medium-sized enterprises – as defined in EU law: The new SME definition.

The main factors determining whether a company is an SME are:

  1. number of employees and
  2. either turnover or balance sheet total.
Company category Employees Turnover or Balance sheet total
Medium-sized < 250 ≤ € 50 m ≤ € 43 m
Small < 50 ≤ € 10 m ≤ € 10 m
Micro < 10 ≤ € 2 m ≤ € 2 m

These ceilings apply to the figures for individual firms only. A firm which is part of larger grouping may need to include employee/turnover/balance sheet data from that grouping too.