2. How can someone become a sole proprietor/individual entrepreneur?
This is the most common form of cooperation with Octo. You are your own boss, there are no business partners or superiors, you decide everything.
It's also ideal for beginning entrepreneurs, as starting the business is easy, fast, and comes with no costs. Registering the start of activities is fee and tax-free (i.e., free), and dissolving the business is also much simpler than in the case of a commercial company.
It's important to thoroughly explore the topic and understand the exact tax conditions. At this point, it's worth consulting with an accountant to whom you can ask your specific questions about the topic for the best decision. At the end of the document, you'll find the contact information of our recommended accounting partners. They are professionals, helpful, and assist every Octo Partner's work at discounted rates!
Process of obtaining sole proprietorship
You can start a sole proprietorship in two ways:
- In person, at any NAV (National Tax and Customs Administration) customer service office
- On the Web Assistant using a form designed for this purpose (electronic registration).
The Web Assistant can be used with identification by the Central Authentication Agent (KAÜ), namely:
- With Ügyfélkapu (Client Gate) registration or
- With Partial Code Phone Authentication (RKTA) or
- With e-ID card.
Personal administration
Documents and steps needed to start the business:
- Personal ID card and address card
- A valid email address (for creating Ügyfélkapu)
- Determining the headquarters of the sole proprietorship. You can specify your own address as headquarters, but also another address. It's important that if you specify another address, the property owner must agree to this, and you'll need a document proving the right to use the headquarters from the property owner.
- Activity codes (ÖVT - Independent Entrepreneurs' Activity Register) needed to start services through Octo:
Cleaning:
Gardening:
Moving:
Pool cleaning:
Taxation of sole proprietor, VAT or tax-exempt business:
You need to decide how to tax the income from sole proprietorship.
You can choose entrepreneurial personal income tax as well as lump-sum taxation.
Electronic administration
If you don't have Ügyfélkapu identification yet, the first step is Ügyfélkapu registration. Ügyfélkapu registration is necessary not only for starting a business, but this is where you can query your tax accounts or send your tax returns. Practically, Ügyfélkapu is needed for handling all your official matters.
Ügyfélkapu can be opened:
In person:
- At government windows or document offices of capital and county government offices
- At government windows or document offices of district offices
- At priority customer services of the National Tax and Customs Administration
- At Hungary's diplomatic and consular representations (Foreign representations)
Electronically:
With a valid personal ID card issued after January 1, 2016, on the Ügyfélkapu e-ID interface. You'll need:
- Your document identifier (personal ID number) and
- Your registration code (on a separate card given with the personal ID in a sealed envelope)
If you're done with Ügyfélkapu registration, the next step is starting the sole proprietorship with the online Web Assistant.
- First, you need to install the general form-filling program, ÁNYK, from the NAV website.
- Then fill out the registration form through the Web Assistant page. Later, you can modify your sole proprietorship data here (e.g., registering new activity areas, terminating previously registered activity areas, modifying headquarters/premises) and here you can request suspension of your business or continuation of your activities.
Steps needed for registration:
- Providing personal data
- Determining the headquarters of the sole proprietorship. You can specify your own address as headquarters, but also another address. It's important that if you specify another address, the property owner must agree to this and you'll need a document proving the right to use the headquarters from the property owner.
- Activity codes (ÖVT - Independent Entrepreneurs' Activity Register) needed to start services through Octo:
Cleaning:
Gardening:
Moving:
Pool cleaning:
Taxation of sole proprietor, VAT or tax-exempt business:
You need to decide how to tax the income from sole proprietorship.
You can choose entrepreneurial personal income tax as well as lump-sum taxation.
You can find the list of our accounting partners here.
Updated on: 02/09/2025
Thank you!