Company Incorporation Portugal

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Introduction to Portuguese Company Formation

The Portuguese economy has had some difficulties in keeping pace with the rest of the European Union and its gross domestic product remains significantly below the EU average. However, Portugal is far from being a poor prospect for international investors; a natural hub for trade between Europe and the Americas, the country has an open economy and actively seeks to attract foreign investment, with plenty of incentives available. To make the most of these incentives in your Portuguese incorporation or for more information about our range of company registration services, please contact us.

Find out if your company name is available in Portugal – Click here

What are the main types of Company Incorporation in Portugal?

There are two main forms of Portuguese company for foreign investros to incorporate:

  • Public Company (S.A.)
  • Private Limited Company (Lda)

We have company incorporation specialists to answer any questions you may have.

 

What are the main features of a Public Company (S.A)?

  • This is the standard format for large businesses
  • The minimum share capital is €50,000
  • The minimum number of shareholders is five
  • There are stringent accounting and auditing requirements

 

    What are the main features of a Private Limited Company (Lda)?

    • This is the most popular format for small and medium businesses
    • The minimum share capital is €1
    • The minimum number of directors is one
    • There are no restrictions on foreign shareholders

     

    Is it complicated to open a company in Portugal?

    It is now much less complicated than it used to be to open a company in Portugal with company registration procedures being streamlined in recent years. Despite this, professional advice remains absolutely essential. We are experts in Portuguese company formation, so please contact us for further details.

     

    What about Corporation Tax?

    Corporation Tax in Portugal is on the high side at a rate of 25% plus 2.5% local tax, although this is an improvement as before 2005 the rate was 30% plus 3% local tax. Portugal can however, offer the Madeira Free Trade Zone which has a much lower rate of Corporation Tax, between 4% and 12.5% (4% until 2012 and 5% from 2013 till 2020).

     

    Portuguese Company Formation

    How easy is it to recruit staff in Portugal?

    Portugal has a strong and highly developed recruitment industry. There is no shortage of well-qualified applicants for jobs, but it is important to make certain that you are dealing with a trustworthy recruitment agency. It is also worth noting that Portuguese labour laws protect the employee and so it is essential to take advice before entering into a contractual arrangement. We have a network of local experts as well as a panel of recommended recruitment specialists in Portugal to provide you with the advice and support you need, so please contact us for details.

     

    What is the Portuguese Company Registration regulatory environment like?

    For centuries Portugal has relied on international trade, and this is reflected today in the liberal nature of its economy. The regulatory environment is easy going, while maintaining standard EU rules. Foreign companies are free to invest as they wish, although there are limits in certain strategic sectors. There are no obstacles for capital entering the country, nor any restraint on the repatriation of profits or dividends.

     

    Are there financial incentives available for those considering Company Incorporation Portugal?

    Portugal offers generous incentives, many of them backed by EU funds, to attract foreign companies wishing to invest. Special incentives are available for large investment projects and for proposals that would impact positively on tourism, science and the environment.

     

    And what about banking facilities?

    Most major international banks and financial institutions are established in Portugal and offer a full range of banking facilities to investors. The local financial sector is also more than capable of meeting the needs of the international investment community. You will need a bank account if you wish to open a company in Portugal; we will be happy to help you with this.

     

    How easy is it to close a Portugese company?

    Please click here for further details and services on closing a company.

     

    To talk to a Portugal formation specialist call us on

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    Company Name Check Service

    In Portugal, company names have to be approved first to see if they are acceptable as well as available for use. They will only be rejected if they are the same or similar phonetically or in spelling of an existing company or if the name implies state ownership or sponsorship. Certain words such as Insurance, bank or group may require special permissions. Click here to fill in our form and get your name checked now…