Becoming a private entrepreneur in Hungary: choosing the right residence permit

Brief summary about the types of residence permits whose holder can do a business as a private entrepreneur legally in Hungary

We received a lot of questions about the private entrepreneur status for third-country nationals in Hungary. Therefore, we made a brief summary about the types of the residence permit whose holders can do a business as a private entrepreneur legally in Hungary.

First of all, if as a third-country national, your primary aim with your Hungarian stay is to work as a private entrepreneur, a Residence Permit for the pursuit of Gainful Activity has to be obtained for you. By holding this residence permit, you cannot be employed by a Hungarian employer, because it would result in an obtainment a different residence permit type for you. You can apply for the Residence Permit for the pursuit of Gainful Activity if …

you have third-country citizenship(s) only;

you intend to stay in Hungary for more than 90 days within any 180-day period;

you do not enter Hungary with or you do not join to an EEA Citizen to whom you are considered a family member;

you want to work in Hungary as a private entrepreneur in Hungary;

you will not be employed by a Hungarian organisation.

Being a private entrepreneur is a good choice to earn your living entirely, however, unless it is not prohibited by your employer, you can run your own business are a private entrepreneur in parallel with your full-time employment too. Being employed and also work as a private entrepreneur requires the obtainment of the Residence Permit for the Purpose of Employment for you.

Having other then a Residence Permit for the pursuit of Gainful Activity or Residence Permit for the Purpose of Employment, you can work as a private entrepreneur in Hungary by holding the following types of residence permit as well:

Residence Permit for the Purpose of Family Reunification

Residence Permit for the Purpose of Study

Before you start your private entrepreneurship, a separate registration has to be made at the Government Office. Although this registration is not an immigration related requirement, it is an obligation for you, in order to work as a private entrepreneur legally in Hungary.

Some further important information: a minor child, or a person having an unlimited responsibility in a limited partnership or in a general partnership (these are specific forms of companies in Hungary), irrespectively of his/her citizenship is not allowed to work in Hungary as a private entrepreneur. In addition, EEA or Swiss nationals or third-country nationals, who are considered a family member of an EEA or Swiss national can work in Hungary as a private entrepreneur, like a Hungarian citizen can do, irrespectively of the purpose they reported to the Immigration Office in Hungary when they obtained their EEA Registration Certificate or their Registration Card.

Jan 8 2021