In Portugal, there are several types of companies you can establish, each suited to different business needs. The most common and suitable structures for most entrepreneurs are the Private Limited Company (LDA) for multiple shareholders or the Single-Member Limited Company (LDA Unipessoal) for a sole shareholder. Below are the types of companies we can help you set up:
Private Limited Company (Sociedade por Quotas – LDA)
A Private Limited Company is the most common business structure in Portugal, often referred to as “Limitada” or “Lda.” This type of company allows for the formation of a business with multiple shareholders, offering limited liability protection.
Single-Member Limited Company (Sociedade Unipessoal por Quotas – SU LDA)
This is a limited liability company structure, referred to as “Unipessoal” or “SU Lda.” It is designed for a single shareholder, which can either be an individual or another company, allowing them to create and manage their own business with limited liability.
Public Limited Company (Sociedade Anónima – SA)
A Public Limited Company (SA) allows for multiple shareholders and requires a minimum capital deposit of €50,000. This structure is ideal for larger companies or those planning to raise significant capital.
Sole Proprietorship (Empresário em Nome Individual – ENI)
This structure is for individuals who operate a business on their own without partners or shareholders. While there is no minimum capital requirement, the owner is personally liable for the company’s debts.
Self-Employed Individual (Trabalhador Independente)
Not technically a company structure, this refers to individuals working independently or as freelancers in Portugal. It allows individuals to provide services or work independently without the need for an employment contract.
In most cases, we typically recommend the Public Limited Company (SA) as it offers limited liability protection and a range of tax advantages, making it a strong choice for entrepreneurs looking to establish a business with growth potential.
Yes, you can open and manage your company in Portugal entirely remotely with our comprehensive services. These include company formation, document management, assistance with financing, and ensuring compliance with legal and accounting requirements.
To set up your company in Portugal, the following documents are required:
- Proof of your current address
- A valid identification document (e.g., passport or EU residence card, if applicable)
- Portuguese Tax Identification Number (NIF) – we can assist you in obtaining this if you don’t already have it
- Proof of your company’s Portuguese address (if you don’t have one, we can provide an address under contract)
- A Fiscal Representative, if you reside outside the European Union
A fiscal representative in Portugal is a mandatory requirement for non-EU residents engaged in financial activities or business operations within the country. This representative must reside in Portugal and acts as an intermediary between the non-resident individual or company and the Portuguese tax authorities. The fiscal representative ensures compliance with Portuguese tax laws, manages communications, and handles tax obligations, including declarations and payments. Non-EU residents who open a company or apply for a Portuguese Tax Identification Number (NIF) typically require a fiscal representative. The cost of this service may vary, but it is crucial for maintaining legal and tax compliance. We can assist you in securing a fiscal representative, making the process easier for non-EU clients starting a business in Portugal.
We simplify the process of starting a business in Portugal through a structured approach that streamlines every step of company formation.
Meeting
Schedule a meeting to discuss your business activities, objectives, and specific requirements. This initial consultation helps us understand your needs and kick-starts the entire process.
Documents
Following the meeting, we will initiate the process of setting up your company in Portugal. We will gather all the required documents, including:
- A copy of your Citizen Card (CC) or passport (for non-EU residents)
- Proof of your Tax Identification Number (NIF)
- Proof of address
- Power of Attorney (if applicable)
Company Creation
We handle all the necessary legal formalities to officially register your company in Portugal. Once completed, you will have a legally registered and operational business.
Bank Account & Certified Accountant Integration
To finalize the company creation process, we will open a business bank account on your behalf. Additionally, we integrate a certified accountant to ensure compliance with Portuguese tax laws and provide professional guidance for the efficient management of your business. We also assist with managing and organizing your business documents.
Most companies are established within approximately 15 to 20 working days. However, this timeframe may vary depending on factors such as the response time of government agencies and the validity of the required documents. As a result, this timeframe is not guaranteed. Additionally, situations like the rejection of company names may extend the registration process.
The minimum investment required to start a business and create a company in Portugal varies depending on the legal structure chosen. Below are the investment requirements for different company types:
Sole Proprietorship (Sociedade Unipessoal por Quotas)
This structure involves a single partner who holds all the capital. The minimum required share capital is just €1, making it an accessible option for many entrepreneurs.
Limited Liability Company (Sociedade por Quotas)
In this structure, the minimum share capital is calculated based on the number of partners, with each partner contributing €1 in share capital. For example, if there are two partners, the minimum capital will be €2. This is one of the most common company structures for small and medium-sized enterprises, providing limited liability protection to the owners.
Public Limited Company (Sociedade Anónima)
A Public Limited Company requires a minimum share capital of €50,000. These companies are more complex, with stricter regulations and legal requirements, typically suited for larger business ventures.
Sole Trader (Empresário em Nome Individual)
This structure allows for the operation of both services and products without the need for minimum capital. It’s important to note that a sole trader does not separate personal and business assets, meaning the individual has unlimited liability.
Freelancer (Trabalhador Independente)
A freelancer can offer services or perform activities independently, without a specific employment contract and without any mandatory minimum capital.
Once your company is registered, you will receive several important documents, including:
- UBO (Ultimate Beneficial Owner) Declaration / RCBE (Central Register of Beneficial Owners)
- Company Certificate
- Company’s Tax Identification Number (NIF)
- Minutes Book
These documents are essential for the legal and financial operation of your company in Portugal. They serve as official proof of registration, ownership, and the company’s tax status.
Portugal is increasingly recognized as an attractive destination for entrepreneurs looking to establish and grow their businesses. The country offers a favorable environment for innovation and entrepreneurship, supported by various government initiatives designed to promote business. This makes Portugal an appealing choice for both local and international investors.
Portuguese companies, known for their resilience and adaptability, often collaborate with foreign businesses through diverse investment projects, creating a dynamic and diverse business ecosystem.
Foreign entrepreneurs wishing to establish a presence in Portugal can benefit from simplified residence authorization procedures, making the process of doing business easier. The Portuguese government actively encourages foreign investment by offering incentives and support to international companies. Furthermore, Portugal’s competitive corporate income tax rates make it even more attractive for businesses to operate here.
Overall, Portugal provides an excellent opportunity for those seeking a combination of strategic location, supportive government policies, and a vibrant business community.
Count on us – we are your ideal partner!
