Gainful activity is an entrepreneurial activity, when someone wishes to stay in Hungary in order to perform business activity within a company or as an individual entrepreneur. For this residence purpose the residence permit for the purpose of gainful activity may be required.
Hungarian law distinguishes between residence permit for the purpose of employment and residence permit for the purpose of gainful activity. The basic difference is that according to Hungarian law gainful activity is an entrepreneurial activity, when someone wishes to stay in Hungary in order to perform business activity within a company or as an individual entrepreneur. Residence permit for the purpose of employment can be required in case of a Hungarian employment, when the applicant wants to perform the activity within the frames of an employment contract, in a subordinate relation.
Activities which can be performed in the possession of a residence permit for the purpose of employment or a residence permit for the purpose of gainful activity qualify as earning activities. However, earning activities can be performed with a residence permit for the purpose of employment or a residence permit for the purpose of profit-making.
About residence permit for the purpose of gainful activity you can read at https://drkrlegal.hu/jovedelemszerzesi-celu-tartozkodasi-engedely/ in Hungarian language.
General conditions
The general conditions of issuing the residence permit for the purpose of gainful activity are the same as of the other residence permits’. These are the following:
- a valid travel document;
- a permit necessary for the applicant for leaving the country;
- the applicant shall evidence the purpose of the travel to Hungary and the residence in Hungary;
- the existence of accommodation in Hungary;
- sufficient resources to cover the accommodation and subsistence for the whole period of the residence as well as the travel;
- comprehensive health insurance;
- the applicant shall not be under expulsion or prohibition of entry and stay as well as the travel and the stay of the applicant shall not violate the public order, the public and national security of Hungary;
- the applicant shall not be under an alert issued in the SIS for the purposes of refusing entry and stay.
In case of residence permit for the purpose of gainful activity the purpose of the residence can be verified especially by the followings:
- with an individual entrepreneur certificate, or in absence of it, with an individual entrepreneur registry number,
- with an agricultural producer certificate,
- with a business plan considering the planned economic activity,
- with an agency, licence or service agreement which the applicant contracts as a private individual,
- or any other credible way.
You can read in English about establishing a limited liability company (Ltd.) at https://drkrlegal.com/limited-liability-company-hungary/, while you can find information in English about the Hungarian branch offices of foreign enterprises at https://drkrlegal.com/hungarian-branch-office-foreign-enterprises.
Special conditions
The special conditions of issuing the residence permit for the purpose of gainful activity are the following:
- Residence permit for the purpose of gainful activity can be issued to third-country nationals whose purpose of residence is
to perform activities independently, for remuneration, within the frames of Hungarian law, or - someone, who performs work as the owner or executive officer of a business organisation, co-operative society or other legal entity, or is a member of the supervisory board of the previously mentioned.
Based on b) point a third-county national can effectively require the residence permit if
- the business organisation employs in full time at least three Hungarian citizens or persons with the right of free movement and residence in Hungary, at least for six months (without suspension), lawfully, or
- the applicant’s stay in Hungary is crucial for the business organisation, and on the basis of the business plan (attached to the request for the residence permit) it is likely, that the business organisation will achieve as much revenue which will cover the applicant’s livelihood. The content of the business plan must be sustained credibly by agency or enterprise agreements or with contracts regarding sales or purchasing.
Residence permit for the purpose of employment vs. residence permit for the purpose of gainful activity
There is a border-land between these types of residence permits, when the applicant is the owner or executive officer of a business organisation, co-operative society or other legal entity, and beyond this position the applicant wants to perform actual work in the business organisation or co-operative society which is owned or led by the applicant.
In this case – besides that the above mentioned b) condition is realized – instead of a residence permit for the purpose of gainful activity a residence permit for the purpose of employment should be required in a single application procedure.
In such case the applicant must attach to the request a pre-contract on the employment relationship or any other document proving the employment relationship which the executive officer or the member of the company contracts for the work beyond the owner’s or executive officer’s activities.
In the present case the Immigration Office besides the pre-contract on the employment relationship or the document proving the employment relationship can require the verification of the existence of the special conditions listed above.
About residence permit for the purpose of employment you can read at https://drkrlegal.hu/munkavallalasi-celu-tartozkodasi-engedely/ in Hungarian, and at https://drkrlegal.com/residence-permit-for-the-purpose-of-employment/ in English.
Period of validity
The residence permit for the purpose of gainful activity may be valid for three years at the most, and can be extended by three years in every occasion.
If you have any questions, please do not hesitate to contact me.
