Company Formation Portugal
Portugal is a European country that has more than 10 million people and a GDP of more than $236 billion. The country’s capital city is Lisbon. As the westernmost state in Europe, the country borders the Atlantic Ocean. It also borders Spain to the North. Portugal is a developed country that joined the European Union in 1986. The country’s economy is growing at about 1.5% every year, which is slightly below the EU’s average. Portugal is ranked at position 34 on the World Bank’s ease of doing business index.
Reasons for Registering a Company in Portugal
There are many reasons you may consider registering a company in Portugal. Some of these reasons are:
- Member of European Union – Portugal is a member of the European Union. This is important because of the large market it presents.
- Growing service sector – Portugal is known for its growing services sector that opens opportunities to many investors.
- Quality infrastructure – Portugal has advanced infrastructure such as roads, rail, ports, and airports.
- The government has added a number of incentives that are meant to attract foreign businesses.
- Portugal has many young people, which helps reduce the cost of labor.
Steps of Registering a Company in Portugal
The process of registering a company in Portugal is relatively easy. You should follow the following procedure:
- Identify yourself – Here, you should check whether you can legally set up a business in Portugal. Here, you will need your Portuguese residency card, tax number, and social security number.
- Company name and legal structure – Come up with a unique business name and the legal structure that you want.
- Select the method you want to use – You can set up the business online (empresa online) or on the spot (empresa de hora). The former takes 1 to 2 days and you need an electronic certificate. The second method takes some time. However, sole proprietors can register the business within a hour.
- Get a certificate of admissibility – This will identify your official Portuguese company name.
- Apply for a company card and a collective card from IRN.
- Open a bank account for your company.
- Visit the local tax office and declare the commencement of activity of your business.
- Register your business at a commercial registry office.
- Register as an employer at the local social security office.
This process takes about 15 days.
FAQs for Starting a Company in Portugal
What are the types of businesses you can start in Portugal?
There are three main types of businesses you can register in Portugal. These are sole traders, single-member limited liability company, and individual limited liability company.
A private limited company (sociedade por Quotas) is a company that has a minimum of two partners and a minimum capital investment of EUR 5,000. Founders are responsible for their debt.
A public limited company (sociedade anomina) requires at least five shareholders and a minimum investment of EUR 50,000.
How long does it take to register a company in Portugal?
It takes from one hour (for sole traders) to a few months (for complex businesses).
What is the corporate tax rate in Portugal?
The corporate tax rate in Portugal is 21%. There is a municipal tax of between 0% and 1.5%. Other taxes are VAT of 23%, state surtax of 3% for companies with annual turnover of more than EUR 1.5 million
Do you need to be physically present?
No. You can use a proxy, who is recognized by the company registration office.
At GFSC Global, we help hundreds of companjes be registered in Portugal. We have a team of experts that focus on making it easy for companies to do business in the country.
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