Table of Contents
Opening a business in a European country is an attractive prospect for many Entrepreneurs. After all, such countries typically offer favorable business environments and enjoy perks that come from EU membership. However, few European companies can compete with Portugal when it comes to offering a great environment for new businesses.
Businesses in Portugal can benefit from receiving venture capital, loans, and grants. The country’s business environment is also favorable to startups thanks to the numerous incubators and accelerators present there.
If all these points have gotten you excited about starting a business in Portugal, you might be wondering where to start. In this guide, we will go over the steps necessary to set up a company in Portugal.
-
Research the Local Industry
-
Choose a Good Company Name
-
Select a Business Type
Individual Entrepreneur
This is a company structure in which ownership is held by a single person. The company’s name should be the full or abbreviated name of the individual and there is no minimum capital share requirement to start an individual entrepreneur business. This company structure doesn’t distinguish between the entrepreneur’s business and personal assets. They are also solely liable for the company’s debts, which can make this company structure risky to keep.Individual Limited Liability Establishment
An Individual limited Liability Establishment (EIRL) is a bit different from an Individual Entrepreneur company type. This company is also owned by a single individual. However, there is separation between the entrepreneur’s business and personal assets. In this structure, only the individual’s business assets are liable for company debts. This makes it better than an Individual Entrepreneur structure. However, you will need to put up a minimum share capital of €5,000 if you select an EIRL company type.Limited Partnership
A limited partnership is a type of partnership company founded on a collaboration between two or more individuals. These partners can set up the company without having to put up any capital. However, one partner will be burdened with having full liability of the company’s obligations. The other partner will get to enjoy limited liability.General Partnership
A general partnership is similar to limited partnerships in many respects. It consists of two or more partners and there is no minimum capital requirement. However, the key difference here is that all the partners are fully responsible for their general partnership company’s obligations. Each partner is also capable of managing the company and making decisions.Private Limited Company
A Private Limited Company, or Sociedade por Quotas (LDA), as it is locally known, is a company structure where the business is owned by shareholders rather than the founder. This LDA must have a minimum of two shareholders, with a maximum of fifty shareholders. Each shareholder’s liability in the company will be determined by the capital they contributed. This company structure requires an initial capital of just €1. This structure is also flexible, which makes it popular with many small and medium-sized businesses in Portugal.-
Get a Tax Number
- >The tax number registration form
- A copy of your international passport
- A copy of your internal passport
- A bank statement verifying your income is legal
- A tax ID number from your home country
-
Obtain a Social Security Number
-
Open a Business Bank Account
-
Register Your Business
-
Start Operating Your Business
