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Guest self-employment — owner or chief executive performing actual work

HungaryStarting a business

Explore the five recorded questions, answers and sources for this pathway.

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Is this for a founder, startup entrepreneur, self-employed person, freelancer, company owner or another business profile?

A chief executive of a business organisation, cooperative or other legal entity established for the purpose of gainful activity.

See recorded sources
Limits of the record
  • The catalogue name says 'owner or chief executive performing actual work'; the page's profile is the chief executive only, and it states that actual work in the company beyond that scope requires a residence permit for employment or a Hungarian Card instead (R4 citation) — recorded in notas.md DIVERGÊNCIAS.
  • One permit covering also the self-employed profile (a); common regime content in notas.md.
  • chars 508-733
    b )who wishes to undertake act as a chief executive of a business organisation, cooperative or other legal entity established for the purpose of gainful activity (hereinafter collectively referred to as business organisation)

What must actually exist or be demonstrated: business plan, company, innovation, clients, contracts, economic activity, job creation or other substance?

One of the following must be proved: the business organisation has legally employed at least five Hungarian nationals or persons with the right of free movement and residence on a full-time basis for at least six consecutive months without interruption, or the applicant's residence is essential for the operation of the business organisation and, based on the detailed declaration of business activity, it is likely that the applicant will generate income sufficient for the subsistence of the business organisation. The detailed declaration must be supported by credible evidence such as business contracts, service contracts, agreements, sales contracts or purchase contracts.

See recorded sources
Limits of the record
  • The document does not explicitly require a business plan, innovation, clients, or job creation beyond the specified employment condition.
  • The document does not state whether these documents are mandatory or merely examples; it says 'may serve as proof'.
  • Documents in proof of the purpose of residence
    Content the detailed declaration of business activity must be supported by credible evidence, in particular, by a business contract, contract of services, agreement, sales contract, purchase contract.

What investment, capital, income, revenue, funding or viability evidence is central to this pathway?

Either the business organisation has legally employed at least five Hungarian nationals or persons with free-movement rights full-time for at least six consecutive months without interruption, or the applicant's residence in Hungary is essential to the organisation's operation and the attached detailed declaration of business activity makes it likely they will generate income sufficient even for the organisation's subsistence. The official source does not state an investment or capital minimum.

See recorded sources
Limits of the record
  • The detailed declaration must be supported by credible evidence (business contract, contract of services, agreement, sales or purchase contract) and by tax-authority certificates of no tax/contribution debts and no enforcement or liquidation proceedings, plus fulfilment of employee-registration and tax obligations — offsets in notas.md.
  • Proof of means of subsistence is a regime-level requirement shared with the self-employed profile — offsets in notas.md.
  • No investment or capital minimum is stated on the page.
  • chars 8676-9304
    One of the following must be proved if you perform activities as a chief executive of a business organisation: ·the business organisation has been legally employing at least five Hungarian nationals or persons with the right of free movement and residence on a full-time basis for at least six consecutive months without interruption, or ·your residence in Hungary is essential for the operation of the business organisation and, based on the detailed declaration of business activity attached to the application, it is likely that you shall generate an income sufficient even for the subsistence of the business organisation.

What business/self-employed activity may the holder conduct? Are there important restrictions? What is the family position where clearly stated?

The guest self-employment route covers independently performed remunerated activity and acting as chief executive of a business organisation. Actual work in the company beyond the chief-executive role calls for an employment permit or Hungarian Card as a highly qualified employee. The OIF expressly says an existing guest-self-employment holder cannot apply for either of those alternatives in Hungary, and that an application for another residence title is not allowed in Hungary during this permit or after expiry. Family reunification is barred for one year from issue, except for permits re-issued after three years; a third-country national child born in Hungary to a holder during permit validity is a stated exception after birth notification. The page also excludes this holder from a national residence card.

See recorded sources
Limits of the record
  • The OIF page does not establish whether an alternative employment or Hungarian Card application from outside Hungary would succeed; the in-country bar must not be read as a worldwide bar.
  • OIF activity and in-country alternative permit restriction, chars 0-1450
    Residence permit for guest self-employment Factsheets Residence permit for guest self-employment INFORMATION on Residence permit for guest self-employment 1)Which third-country national is eligible to be granted a residence permit for guest self-employment? A residence permit for guest self-employment may be granted to a third-country national a) who wishes to pursue activities which can be performed independently, for remuneration (e.g., as a self-employed person) b )who wishes to undertake act as a chief executive of a business organisation, cooperative or other legal entity established for the purpose of gainful activity (hereinafter collectively referred to as business organisation) If you wish to carry out actual work in the company beyond the scope of activity described in Point b), you must submit an application for a residence permit for the purpose of employment (for more information, please click here) or an application for the issuance of a  Hungarian Card as a highly qualified employee (for more information, please click here). However, please note that if you are already a holder of a residence permit issued for the purpose of guest self-employment, you cannot apply for a residence permit for the purpose of employment in Hungary or for a Hungarian Card in Hungary. Definition of third-country nationals: ·Non-Hungarian nationals who are not persons with the right of free mov
  • OIF other-title, family and national residence card restrictions, chars 14900-16700
    ce permit issued for the purpose of guest self-employment shall be subject to the regular reporting obligation laid down by NDGAP. You can do this via Enter Hungary, by completing and sending the regular declaration for this purpose, or by using the application for this purpose. Please note that your reporting obligation can also be fulfilled via E-Paper Service as long as fulfilling reporting obligations via the Enter Hungary system is not available. To fulfill your obligation, kindly submit the attached annex. ·Submitting an application for a residence permit for another purpose within the territory of Hungary During the validity period of the residence permit and after its date of expiry, application for the issuance of a residence permit under another legal title is not allowed in Hungary. ·Family reunification For a period of 1 year from the date of issue of a residence permit for guest self-employment, family members of a third-country national who is a holder of or an applicant for a residence permit for guest self-employment may not be granted a residence permit for family reunification, except for residence permits that are re-issued after 3 years. An exception to this is if a third-country national holding a residence permit for guest self-employment gives birth to a third-country national child in Hungary during the period of validity of the residence permit, as in this case the child will receive a residence permit issued for the purpose of family reunification after notification on the child’s birth. ·Long-term residence Third-country nationals who are holders of a residence permit for guest self-employment may not be granted a national residence card. ·Appeal In case of refusal, the decision may be appealed within 8 days of delivery, submitted to

What approval/application sequence applies, how long is the status granted, how is it renewed, and what longer-term residence direction is officially stated?

The permit is valid for at most 1 year and can be extended for the same purpose for a period not exceeding 2 years, but not beyond 3 years from first issuance. Extensions may only be submitted via Enter Hungary, no more than 90 and no later than 30 days before expiry, and require a valid permit, residence in Hungary for at least 90 days in any 180-day period and fulfilment of regular reporting obligations. To reside longer than 3 years, the holder may apply for a residence permit in Hungary at least 40 days before expiry. Holders may not be granted a national residence card.

See recorded sources
Limits of the record
  • The document does not state the exact approval/application sequence beyond submission locations and extension rules.
  • The document does not mention any longer-term residence direction other than the prohibition on a national residence card.
  • II. Application for the extension of a residence permit
    Furthermore, please be informed that the extension of the residence permit is only possible if · you are a holder of a valid residence permit for guest self-employment at the time of application submission, · you resided within the territory of Hungary with your residence permit at least for 90 days in any 180-day period. · you have fulfilled your regular reporting obligation to the immigration authorities after the issuanve of the residence permit. Please note that an application for the extension of a residence permit may be submitted no more than 90 days prior to the date of expiry of the issued residence permit. Applications for the extension of a residence permit must be submitted no later than thirty days before the date of expiry of the residence permit.

These are the answers currently recorded in the catalogue. A missing or partial answer is not an eligibility decision.

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