Startups (early-stage businesses)

Nowadays, establishing a company is not a technically complicated task, as it can be done in as little as one day with the right preparation.

Prospective entrepreneurs who are about to start a business must make decisions on several tax issues. KATA, KIVA, MOTHER, FATHER, GRANDMOTHER? Many start-up entrepreneurs are unfamiliar with these abbreviations, yet if they make careful decisions, they can gain a competitive advantage and avoid tax risks.

Our experts can provide assistance to start-up companies in the following areas:

• We provide recommendations on the tax advantages and disadvantages of registering a company in Hungary or abroad.
• we present the types of taxation available for each type of business; how deferred losses can be treated under each form of taxation; how the taxation of business shares and stocks changes in the event of a change of ownership; Is it worth opting for VAT liability or exemption?
• We provide advice on the employment of owners: types of legal relationships, contributions, contribution discounts,
• We perform tax planning based on the expected parameters of the business according to the various forms of taxation.
• We present the taxation issues arising in connection with dropshipping (VAT and customs obligations, VAT registration, invoicing, the optimal form of taxation for the business).

Start-up companies in the growth phase face new decisions regarding taxation, brought about by rapid growth and the opportunity to enter the international market.

Our experts can assist you with the following:

• We examine whether the company has taken advantage of all tax bases and tax allowances, and make recommendations for tax optimisation opportunities. For cross-border transactions, we present tax planning opportunities,
• we present the tax incentives that can be claimed after research and development activities,
• We develop the system for claiming R&D tax credits (TAO, szocho, HIPA) from the theoretical development to the detailed presentation of the administrative conditions.
• we present the possibility of claiming tax relief for early-stage businesses,
• We advise on the conditions under which investors can take advantage of corporate tax relief for early-stage venture capital companies.

Additional services we offer to start-ups in the growth phase:

• We provide recommendations regarding the social security contributions associated with different types of legal relationships (employee, contract, entrepreneurial) and the available contribution discounts.
• we explain the tax issues relating to employee share benefits,
• Share awards are a key factor in attracting highly skilled employees and are often a fundamental prerequisite for venture capital investments. Our experts will help you plan the tax implications and timing of your benefits.
• We provide preliminary opinions on specific transactions from a tax law perspective (draft contracts for high-value services and product sales, draft contracts for the sale and purchase of intangible assets entitling to royalties, transformations, restructurings, real estate transactions), identify tax risks, and make recommendations for improving cash flow efficiency and tax optimisation.
• We assist start-up companies through the coordinated work of lawyers, controlling specialists and insurance advisors.

If you have any further questions on this topic, our experts are available at the contact details below.