Registering a company in Portugal is one way to access the EU market. You can set up a business independently or with the help of First Legal Portugal. Here’s what needs to be done.
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Jurisdiction Features and Advantages of Establishing a Company Here
Registering a company in Portugal offers numerous benefits, including:
- Speed of registration: You can establish a company from scratch in just one week;
- Free economic zones: The level of economic development and its growth rate are assessed at +0.8% annually;
- EU membership: You gain a common currency and the ability to move freely across all Schengen Area countries.
Additionally, you have the opportunity to obtain a “Golden Visa” — a document that allows non-EU residents to live in Portugal for up to five years.
Government Financial Incentives to Attract Foreign Business to the Country
To attract foreign business, the Portuguese government utilizes special financial incentives:
- RFAI. A special tax regime supporting investments. Entrepreneurs receive a reduction in IMI (municipal property tax) or exemption for up to 10 years if the building is owned by them.
- SIFIDE. Tax benefits for scientific, research, and practical work.
You can also take advantage of contractual tax benefits, depending on the situation.
“Pitfalls” of Company Registration in Portugal
When registering a company, pay attention to certain factors:
- High taxes. Entrepreneurs must pay VAT and corporate tax, which varies depending on the company’s location and ranges from 5 to 21%.
- Expensive exit from the Portuguese business market. To close a company, you must notify the tax office. Failure to do so will result in continued tax payments.
- Lack of demand for some services. If something is absent in Portugal, it means there is no local demand. Such a business will not be profitable.
Knowledge of the Portuguese language is also necessary; otherwise, your company may fail. Language barriers can lead to the loss of suppliers or advantageous contracts with partners.
Documents Required for Registration
Prepare the following documents:
- Information about the company name, directors, and shareholders, and the rights and duties they will perform;
- Articles of Association;
- Description of activities;
- Confirmation that you have provided a legal address;
- Document proving that you have opened an account in Portugal and deposited the share capital.
All documents must be in Portuguese and notarized.
Step-by-Step Procedure for Company Registration in Portugal
To register your business in Portugal, follow these steps:
- Choose a name, check and approve it in the Commercial Register and the National Registry of Commercial Companies (Commercial Companies’ Register). Usually, you are offered one of the prepared options, but you can suggest your names, preferably multiple, to increase the chances.
- Appoint a local registered agent. You need to find a legal firm to handle your matters – accounting, receiving, and sending letters. This is necessary for establishing legal and postal addresses.
- Draft the company’s Articles of Association. It should include information about the name, shareholders, citizenship, and residence, the company’s activities, directors’ rights and duties, and the liquidation procedure if necessary. It’s also important to specify the details about share transfer and shareholders’ rights.
- Open an account for the minimum share capital. Any financial institution will suffice. It’s better if the amount exceeds the minimum value. This indicator is set individually, depending on the number of company employees.
- Apply for an IBCM license. It’s issued by Sociedade de Desenvolvimento da Madeira, S.A. (S.D.M.).
- Get authorized in the tax office to pay tax and social contributions. Their size depends on where the company is registered — it can be a free zone, autonomous area, or mainland.
If you’re unable to register the company on your own or are afraid of making a mistake, seek assistance from First Legal Portugal professionals.
Can You Register a Company in Portugal Without Being Present?
It’s possible to register a company in Portugal even if you’re not residing in the country. This official procedure is available to anyone, typically conducted through an intermediary. You can contact First Legal Portugal to open a company without being physically present in the country. Just provide the full information, and we will handle all the subsequent steps independently.
