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The Necessary Steps For Establishing A Portugal Company

What are the different types of business entities in Portugal?

Portugal offers a diverse selection of business structures, each tailored to different entrepreneurial goals and needs. Here’s a look at the options:

Sole Proprietorship (Empresário em Nome Individual)


A sole proprietorship is ideal for individual entrepreneurs starting a small-scale venture. With straightforward registration and minimal administrative demands, this option provides full control over profits. However, it's worth noting that personal liability applies, meaning the owner is responsible for all business debts and obligations, which can be a risk factor.

Private Limited Company (Sociedade por Quotas - LDA)


For small to medium-sized businesses, the private limited company (LDA.) is a popular choice due to its limited liability benefits. Shareholders are only liable for the capital they have invested, shielding personal assets from company debts. With just one shareholder needed to establish an Lda., this structure offers flexibility in management and profit distribution, making it appealing to entrepreneurs looking for a straightforward yet robust framework.

Public Limited Company (Sociedade Anónima - SA)


Public limited companies (SAs) cater to businesses with growth ambitions, particularly those considering raising capital through the public market. Shares in an SA can be traded, attracting significant investment potential. Like private limited companies, public limited companies offer limited liability protection to shareholders, a key benefit when managing larger capital inflows.

General Partnership (Sociedade em Nome Coletivo)


General partnerships are collaborative structures where two or more individuals work together, sharing profits, losses, and responsibilities. While partnerships provide flexibility in operations, all partners have personal liability for the company's obligations, making this a more suitable option for ventures with lower financial risk.

Limited Partnership (Sociedade em Comandita)


In limited partnerships, there are two types of partners: general partners, who bear full liability, and limited partners, whose liability is restricted to their investment. This structure allows investors to contribute without becoming actively involved in business decisions, providing a valuable investment model for those seeking limited participation.

Professional Partnerships (Sociedade de Profissionais)


Professional partnerships are beneficial for licensed professionals, such as lawyers, architects, and doctors, who wish to collaborate while maintaining responsibility for their individual actions. This setup allows professionals to pool resources while retaining control over their practices.

Cooperative (Cooperativa)


A cooperative is a business entity designed for shared economic and social benefits among its members. In Portugal, cooperatives are particularly popular in the agricultural and production sectors, providing mutual support, resource sharing, and profit distribution among members. This structure encourages collaboration and shared growth objectives.

Foundation (Fundação)


Foundations are non-profit entities focused on promoting social, cultural, or charitable goals. They can engage in commercial activities as long as profits are reinvested to further their mission. Ideal for philanthropic pursuits, foundations in Portugal can secure grants and other support to fund their initiatives.

Portugal's wide-ranging entity structures allow businesses of all sizes to thrive, from sole proprietors to large enterprises aiming to raise capital. Each entity type offers distinct benefits, helping entrepreneurs select the best fit for their vision and scale of operation.

Why Portugal’s LDA is a Go-To Choice for Foreign Entrepreneurs?

A Portuguese LDA (Limitada) is a private limited liability company in Portugal, designed to suit both local and international entrepreneurs looking to establish a business presence. With its attractive tax regime, limited liability structure, and simplified setup, the LDA appeals to global investors aiming for flexibility and security.

Key Features of a Portuguese LDA:


Limited Liability Protection: The LDA structure safeguards the personal assets of shareholders, restricting their liability to their contributions to the company. This offers peace of mind, as shareholders are not personally accountable for the company’s debts and obligations.

Flexible Ownership: The Portuguese LDA is highly adaptable, allowing a single shareholder or multiple partners. This setup is ideal for entrepreneurs who prefer operating independently or are looking to establish joint ventures.

Attractive Tax System: Portugal offers several tax advantages, particularly for companies reinvesting profits. This favorable tax environment is especially beneficial for startups and expanding businesses, encouraging growth within the company rather than upfront tax burdens.

Streamlined Establishment Process: Setting up an LDA in Portugal is a straightforward process, often completed within days depending on documentation readiness. This simplified process is designed to reduce administrative burdens for new businesses.

Access to the European Market: A Portuguese LDA provides direct access to the European Union’s single market, offering seamless trade and business opportunities across Europe. This entry point into Europe enhances market reach and facilitates expansion across EU member states.

Political and Economic Stability: Portugal has a solid reputation for its business-friendly climate, stable government, and transparent legal framework. This foundation makes it a favorable destination for companies seeking a reliable and predictable operating environment.

Supportive Business Environment: Portugal actively promotes entrepreneurship with a range of initiatives to attract foreign investment and support innovative ventures. Programs supporting startups and foreign-owned businesses further strengthen Portugal’s appeal as a business destination.

Golden Visa Program: Portugal’s Golden Visa offers residency for non-EU investors, making it easier for foreign entrepreneurs to live and work in the country. This program also allows international business owners to establish and manage their LDAs in Portugal with a residence permit.

Why Choose a Portuguese LDA?

The Portuguese LDA offers significant advantages for both new and established businesses, providing a flexible, stable, and supportive environment for growth and expansion within Europe. Whether you’re launching a new venture or scaling a company, the LDA structure aligns with Portugal’s open and entrepreneurial spirit, making it an ideal choice for international business.

Essential Legal Steps For Launching A Portuguese LDA (Sociedade por Quotas)

Setting up a private limited liability company (Lda) in Portugal is straightforward and offers flexibility for both local and international entrepreneurs. Here's a look at the main steps and requirements:

Minimum Share Capital: An Lda requires a minimum share capital of just €1 per shareholder, which makes it accessible for businesses of all sizes. This capital can be deposited upon or after the formation of the company, providing flexibility when launching operations.

Shareholders: One or more shareholders can found a Portuguese Lda, and there are no residency restrictions. This setup welcomes both domestic and international shareholders, allowing global participation.

Managing Director: The company must appoint at least one managing director. This individual can be one of the shareholders or a separate person entirely. Although the managing director does not need to be a resident of Portugal, appointing a local representative can simplify some operational processes.

Registered Office Address: An Lda needs a registered office address in Portugal, which will serve as the primary location for official correspondence. The address must be a physical location, as P.O. boxes aren’t permitted.

Articles of Association: Drafting the Articles of Association is essential and includes the company’s objectives, structure, and operating rules. This document serves as the foundation for the Lda and is required for official registration.

Company Name Registration: The chosen company name must be unique and compliant with Portuguese naming regulations. It must not duplicate existing names or infringe on trademark rights. A preliminary check can confirm its availability.

Business Registration: To legally establish the Lda, founders must submit the necessary documents to the Portuguese Commercial Registry. The process can often be completed online, with registration typically finalized within a few days.

Tax Registration: Upon registration, the company is assigned a tax identification number. For businesses employing workers or engaging in VAT-taxable activities, additional tax registrations may be necessary to remain compliant.

Accounting and Reporting Requirements: Portuguese companies must maintain proper accounting records and prepare annual financial reports. Depending on the company’s size and activities, appointing an auditor may be mandatory.

Compliance with Local Regulations: Certain industries may require additional permits or licenses. It's essential for the business to comply with industry-specific regulations to operate legally in Portugal.

Non-Resident Ownership: Portugal welcomes non-resident entrepreneurs and allows for full foreign ownership in an Lda. Additionally, Portugal’s Non-Habitual Resident (NHR) tax regime can provide substantial tax incentives for eligible residents, making it attractive for foreign founders.

In summary, forming a private limited liability company in Portugal is accessible and efficient, offering a business-friendly environment with opportunities for both local and international founders. The ease of incorporation, flexible capital requirements, and supportive legal framework make Portugal a prime location for starting a business.

How can I select the perfect name for my company in Portugal?

Choosing the right company name in Portugal is a critical step that sets the tone for your brand and helps ensure a smooth registration process. Here’s a guide to selecting a name that resonates with your market and meets all legal requirements:

Spark Ideas with Purpose

 

Start by listing names that embody your brand’s personality and vision. Consider names that capture the essence of your products or services, appeal to your ideal customers, and reflect the unique qualities of your business. Aim for something memorable, meaningful, and true to your industry’s spirit.

Verify Uniqueness

 

Confirm that your name is distinct within Portugal. The Portuguese Commercial Registry holds a database of registered business names, and cross-referencing your ideas here can prevent legal issues. Making sure your name stands out legally and creatively helps secure your brand’s identity.

Mind the Cultural Nuance

 

In Portugal, a name that resonates locally can create a strong connection with the audience. If your plans are international, think about how the name will translate and be received abroad. Avoid names with potential language barriers or unintended interpretations that might hinder global growth.

Follow Legal Guidelines

 

In Portugal, company names must meet specific legal criteria. Avoid words or phrases that might mislead the public, suggest unauthorized governmental ties, or otherwise violate naming regulations. Familiarize yourself with these requirements to streamline the registration process and avoid any last-minute issues.

Check Domain Availability

 

A strong online presence starts with a matching domain. Once you've shortlisted names, verify that your desired domain is available. Securing a consistent digital identity can enhance brand visibility and credibility in today’s online-driven market.

Plan for Flexibility

 

Think long-term. If you anticipate growth or plan to expand into other services or products, choose a name that allows for flexibility. A name that is too specific might limit your future options and could require rebranding as your business evolves.

Gather Perspectives

 

Once you’ve narrowed down your options, gather feedback from peers or potential customers. Their insights can provide a fresh perspective on how your name might be perceived, and whether it aligns with your intended brand image.

Seal the Deal

 

With feedback and research complete, choose the name that best encapsulates your brand and fits all legal standards. A well-chosen name reflects your vision and supports your growth in the Portuguese market.

Following these steps can help you secure a name in Portugal that’s both legally sound and strategically impactful, setting your business up for success from day one.

Essential Documents for Portugal Company Registration

Registering a company in Portugal involves submitting a set of key documents to comply with local regulations. While specific requirements may differ depending on the type of business being formed, particularly for a Sociedade por Quotas (Lda), which is a private limited liability company, the following documents are generally required to ensure that the business is legally established and ready to operate in Portugal.

Articles of Association

 

The Articles of Association define the company’s structure, governance, and internal regulations. It should be customized to suit the business’s needs and ensure compliance with Portuguese corporate law. This document typically includes details on the company’s activities, share capital, and the rights and responsibilities of shareholders.

Deed of Incorporation

 

A formal Deed of Incorporation must be signed in front of a notary in Portugal. This document confirms the company’s establishment and includes essential information such as the company name, registered office, share capital, and the names of shareholders. It is a necessary document for the company registration process and must meet Portuguese legal requirements.

Identification Documents

 

Identification documents are crucial during the company registration process. Each director and shareholder must provide valid identification, such as a passport or national ID card. In the case of corporate shareholders, additional documentation may be required, including the registration details of the parent company and identification of authorized representatives. This ensures transparency and verifies the identities of those involved in the company’s operations.

Proof of Registered Office Address

 

A registered office address in Portugal is required for official correspondence. Acceptable proof of this address includes a lease agreement, property deed, or a recent utility bill showing the company’s name and address. This ensures that the company has a legitimate operational base within the country and allows for proper communication with government authorities.

Share Capital Deposit Proof

 

For an Lda, evidence of the minimum share capital deposit (currently €5,000) is required. This can be provided through a bank statement or a deposit confirmation from a financial institution in Portugal. The share capital must be deposited into a Portuguese bank account before the company can be officially registered.

Company Registration Application

 

The company registration application must be completed and submitted to the Portuguese Commercial Registry. The application includes all necessary details about the company, its directors, and shareholders. It can be submitted electronically through the online portal or in person at a notary’s office.

By following these steps and submitting the required documents, businesses can navigate the company formation process in Portugal and ensure compliance with all relevant regulations.

The Role of a Notary in Portugal Company Formation

In Portugal, a notary plays a crucial role in the company formation process, ensuring all legal requirements are met and that incorporation documents are properly executed. Here’s a breakdown of the notary's responsibilities:

Document Verification: The notary is responsible for verifying the authenticity of key documents required for company formation, such as the Articles of Association and identification details of the founders and board members.

Execution of the Notarial Deed: To legally establish a company in Portugal, a notarial deed of incorporation is necessary. The notary prepares and executes this document, ensuring it includes important details like the company name, registered office, share capital, and the identities of the founders and board members.

Legal Compliance: The notary ensures that the company’s Articles of Association and other incorporation documents meet Portuguese corporate laws. This includes checking that the company name is unique and confirming that share capital requirements are fulfilled.

Registration Support: Once the notarial deed is executed, the notary submits the relevant documents to the Portuguese Companies Register. This step is crucial for the company to be officially recognized.

Advisory Role: In addition to administrative duties, notaries provide legal advice throughout the company formation process, guiding founders through their rights and obligations under Portuguese law.

In essence, the notary serves as a vital legal intermediary, ensuring that the company formation process in Portugal is smooth, legally compliant, and seamless. This ensures that founders can move forward with confidence in establishing their business.

How to register your company with the Portuguese Business Register (Registo de Empresas)

To register your company in Portugal, follow these simple steps for a seamless incorporation process:

Choose a Unique Company Name: Ensure your company name is distinctive and not similar to existing businesses. It must be professional and not misleading.

Prepare Key Documents: Gather the required documentation, including the Articles of Association, founders' agreement, proof of address, and identification documents for all company founders.

Open a Bank Account: Set up a business bank account to deposit the minimum share capital. For a private limited company (Lda.), the required minimum capital is €5,000.

Notarize Documents: Have your incorporation documents notarized at a notary's office. All founders must be present or may grant a power of attorney for this step.

Submit Your Application: File your company registration application with the Portuguese Commercial Registry. This can be done online through the official portal for a faster process.

Pay the Registration Fee: Ensure that you pay the necessary state fees, which will depend on the type of company and registration method.

Wait for Approval: Your application will be processed by the Business Registry, typically taking only a few days.

Receive Your Registration Number: Once your company is approved, you'll receive a unique registration number used for all legal and official matters.

Register for Taxes: Complete the tax registration with the Portuguese Tax and Customs Authority (Autoridade Tributária) within 60 days of your company’s formation.

Set Up Accounting: Organize your accounting system either in-house or by hiring an accounting professional to ensure your company complies with local financial regulations.

By following these steps, you'll successfully launch your business in Portugal while ensuring full compliance with all legal requirements.

What is the minimum share capital needed to form a private limited company (LDA) in Portugal?

In Portugal, the minimum share capital required to establish a private limited company, known as Sociedade por Quotas (LDA), is €5,000. This ensures the company has a solid financial base to support its initial operations and obligations. The share capital can be contributed in cash, or in some cases, as non-monetary assets, as long as they are valued and accepted by the company.

The share capital must be fully paid before the company can be officially registered with the Portuguese Companies Registry. This involves transferring the amount to a company bank account. Once the deposit is made, the bank provides a certificate confirming the payment, which is submitted during the registration process. This step is crucial as it shows the company's financial commitment and readiness to start operations.

While €5,000 is the minimum requirement, many entrepreneurs opt to contribute a higher amount to enhance the company's financial stability and provide additional resources for business growth. A higher share capital can also improve the company’s credibility with potential clients, investors, and partners, signaling a stronger financial position. Ultimately, the share capital should reflect the company’s business goals and financial strategy.

What Are the Tax Responsibilities Of A Private Limited Company (LDA) In Portugal?

Corporate Income Tax (IRC)

  • Small and medium-sized enterprises may benefit from a reduced rate of 17% on the first €25,000 of taxable profit.
  • Autonomous taxation may apply to certain expenses.

Value Added Tax (IVA)

  • Reduced rates of 6% and 13% apply to certain goods and services.
  • Some goods and services are exempt from IVA.

Social Security Contributions

  • The total contribution is typically 34.75%, split between employer and employee.
  • Self-employed individuals have different rates and rules.

Personal Income Tax (IRS)

  • The progressive tax rates depend on income brackets.
  • Additional solidarity tax may apply to higher incomes.

This information provides a general overview of the main taxes in Portugal. Keep in mind that tax laws can change, and there may be specific rules, deductions, or exemptions that apply to different situations. For the most up-to-date and personalized tax advice, it's always best to consult with a qualified tax professional or the Portuguese Tax Authority (Autoridade Tributária e Aduaneira).

What Are The Continuous Compliance Obligations For A Private Limited Company (LDA) In Portugal?

A private limited company (LDA) in Portugal must meet several key compliance obligations to stay legally sound and ensure smooth business operations. Here are the essential requirements for companies to adhere to:

Annual Report: Every Lda. is required to submit an annual report to the Portuguese Commercial Registry. This report must include the financial statements and be filed within six months of the end of the company’s financial year.

Accounting Records: The company must keep accurate, up-to-date accounting records in line with Portuguese accounting standards. This involves recording all financial transactions and preparing the required financial statements.

Tax Filings: Timely tax filings are a must, including Value Added Tax (VAT) returns if applicable and corporate income tax on distributed profits. These filings are generally done quarterly or annually, depending on the company's tax profile.

Employment Regulations: If the company employs staff, it must follow Portugal’s employment laws. This includes registering employees with the Portuguese Tax and Customs Authority, withholding and remitting personal income tax, and paying social security contributions.

General Meetings: An annual general meeting (AGM) must be held to discuss and approve the annual report, financial statements, and other key company matters.

Company Updates: Any changes in the company’s details, such as changes to the board of directors, registered address, or share capital, must be updated promptly with the Portuguese Commercial Registry.

Legal Compliance: The company must adhere to all applicable legal and regulatory requirements, including those related to data protection, environmental laws, and any industry-specific regulations.

By meeting these ongoing compliance requirements, a private limited company (Lda.) in Portugal ensures it operates within the legal framework and maintains transparency and accountability in its business practices.

How Does Employee Hiring And Labor Law Work In Portugal?

In Portugal, employee hiring and labor laws are governed by the Labor Code, which sets clear guidelines to protect the rights and responsibilities of both employers and employees. Here are the key aspects:

Employment Contracts: Every employment relationship must be formalized with a written contract, clearly outlining job responsibilities, salary, working hours, and contract duration.

Working Hours: The standard working week in Portugal is 40 hours, typically broken down into 8-hour workdays. Overtime is allowed but must be compensated either with additional pay or time off.

Minimum Wage: Portugal establishes a national minimum wage, which is reviewed annually. Employers are required to comply with this minimum wage, ensuring fair compensation for all workers.

Probationary Period: New employees are allowed a probationary period of up to 90 days. During this time, either party can terminate the contract with shorter notice if the employee is deemed unsuitable.

Leave Entitlements: Employees are entitled to at least 22 working days of paid annual leave. In addition to annual leave, there are provisions for maternity, paternity, and parental leave, ensuring work-life balance for parents.

Termination of Employment: Employment contracts can be terminated by mutual consent, resignation, or dismissal. Notice periods must be respected, and dismissals without just cause can lead to legal claims for compensation.

Health and Safety: Employers must provide a safe working environment and adhere to health and safety regulations, ensuring the well-being of their employees in the workplace.

Social Security Contributions: Employers are responsible for registering employees with Portugal’s social security system and making mandatory contributions that cover health care, pensions, and unemployment benefits.

These regulations are designed to foster a fair and safe working environment while protecting both employees and employers. For businesses operating in Portugal, it's essential to stay informed about the latest labor laws and seek professional legal advice to ensure full compliance with all applicable regulations.

Advantages Of Having A Portuguese Bank Account For Your Company

Having a Portuguese bank account for your company offers numerous advantages, particularly for businesses operating within or with connections to the European Union. Here are the key benefits:

Effortless EU Transactions: A Portuguese bank account enables smooth, cost-efficient transactions within the Eurozone, thanks to the Single Euro Payments Area (SEPA). This ensures faster and more affordable cross-border payments in euros, making international trade simpler.

Access to Digital Banking: Portugal is known for its modern digital infrastructure, and the banking sector reflects this. Businesses can take advantage of advanced online banking services, streamlining financial management, from payments and transfers to account monitoring and reporting.

Business-Friendly Environment: Portugal offers a supportive regulatory environment for businesses, including in its banking sector. Opening a bank account is typically straightforward for companies registered in Portugal, and banks provide services specifically designed to meet business needs.

Currency Stability: With Portugal being part of the Eurozone, a bank account in euros offers stability, reducing the risks associated with fluctuating exchange rates. This is especially valuable for companies engaged in international transactions.

Boosted Credibility: Holding a local Portuguese bank account can significantly enhance your company’s credibility. It shows a commitment to the Portuguese market, fostering stronger relationships with local clients, partners, and suppliers while facilitating smoother operations.

Seamless Integration with E-Residency: Portugal’s e-Residency program allows entrepreneurs to manage their businesses remotely. A Portuguese bank account complements this program, offering a fully digital solution for location-independent businesses to manage their finances efficiently.

These benefits make a Portuguese bank account an essential asset for businesses looking to thrive in the dynamic and business-friendly EU landscape.

How Do I Handle Business Permits And Licenses In The Portugal?

Portugal's business-friendly environment and efficient administrative systems make handling business permits and licenses easier. While many businesses can operate without needing specific permits, certain industries require special registrations or licenses. The process typically involves applying through Portugal's online portals, submitting required documents, and paying relevant fees.

Key Steps for Obtaining Business Permits and Licenses in Portugal:

 

Assess Licensing Needs: First, review the official business registration guidelines in Portugal to determine if your business activity requires a specific license or permit.

Collect Required Documentation: Depending on the industry, you may need to provide documents such as proof of qualifications, detailed business plans, or safety protocols.

Submit Your Application: Apply through the online business registration system or, in certain cases, submit directly to the relevant Portuguese authorities.

Pay the Applicable Fees: License or permit fees vary by industry, so be prepared to pay the necessary charges as part of the application process.

Wait for Approval: Depending on the complexity of the application, the approval process can take from a few days to several weeks.

Ongoing Compliance: Once your license or permit is granted, make sure to comply with any continuing obligations to maintain its validity.

Types of Activities Requiring Licenses in Portugal

 

Financial Services: Banks, insurance companies, and investment firms must obtain licenses from the Portuguese Securities Market Commission (CMVM) or the Bank of Portugal.

Tourism and Hospitality: Hotels, travel agencies, and other tourism-related businesses need to be registered with the appropriate tourism authorities.

Healthcare and Pharmaceuticals: Health-related businesses, including clinics, pharmacies, and pharmaceutical companies, must adhere to strict regulations and obtain necessary licenses from health authorities.

Food and Beverage: Businesses in the food industry, including restaurants, bars, and food production, need specific health and safety permits.

Construction and Real Estate: Companies in construction, architecture, and real estate require licensing and certifications to operate legally in Portugal.

Please note that this table provides a general overview, and specific processing times and renewal frequencies may vary depending on the complexity of the business and local regulations. Always consult with the relevant Portuguese authorities or a legal professional for the most up-to-date and accurate information regarding licensing requirements for your specific business activity.

What Are The Challenges Of Setting Up A Company In The Portugal?

Setting up a business in Portugal offers a dynamic environment, leveraging the country's favorable tax structure, access to European markets, and a growing entrepreneurial ecosystem. However, certain challenges can arise during the process:

Banking Hurdles: While Portugal's digital infrastructure supports business operations, opening a business bank account can still be difficult for non-residents. Some financial institutions may require in-person identity verification, which can be inconvenient for remote entrepreneurs.

Navigating Local Regulations: Understanding Portugal’s legal and regulatory landscape can be complex, especially when unfamiliar with local tax laws, employment practices, and industry-specific regulations. Ensuring compliance with these laws is vital for smooth operations.

Language Challenges: Although many Portuguese professionals speak English, official documents and government communications are primarily in Portuguese. This can create challenges for non-Portuguese speakers and often necessitates the use of translation services to ensure accuracy.

Cultural Differences: Entrepreneurs must adapt to Portugal’s business culture and understand local customs. Knowledge of local etiquette and negotiating practices can make a significant difference when establishing connections or finalizing agreements.

Building Local Networks: Developing a reliable local network of suppliers, clients, and partners is essential for business growth. For newcomers, it can take time to build these relationships, but Portugal’s thriving entrepreneurial ecosystem offers ample opportunities to connect.

Ongoing Compliance and Reporting: Portugal’s regulatory environment requires consistent attention to detail for business owners. Meeting deadlines for tax filings, annual reports, and other legal obligations demands local knowledge and can become a time-consuming process without expert support.

Despite these challenges, Portugal's attractive business environment, robust digital infrastructure, and welcoming policies for foreign entrepreneurs make it a great place to establish and grow a business within the European Union.

Can I Operate A Business In The Portugal Without Being A Resident?

Yes, you can run a business in Portugal without being a resident. Portugal offers a digital residency program that allows non-residents to set up and manage a business in the country entirely online. Here are the key features:

Digital Residency Program: This innovative digital identity enables you to establish a company in Portugal, open a business bank account, and manage your operations from anywhere. It leverages Portugal's advanced digital infrastructure to offer seamless business services.

Company Formation: Establishing a private limited company (LDA) is a simple process that can be done entirely online through the Portuguese Business Register. The process is efficient, requiring only your digital ID and relevant documents for registration.

Banking and Financial Services: While you can open a business bank account, some banks may require an in-person visit for identity verification. However, many fintech companies provide online banking solutions that integrate with the digital residency program.

Tax and Compliance: As a non-resident business owner, you are required to follow Portuguese business regulations, including taxation requirements. Portugal's tax system is attractive, with corporate income tax applied only to distributed profits, offering a beneficial environment for entrepreneurs.

Legal and Administrative Support: Portugal boasts a range of service providers offering legal, accounting, and administrative services to help non-residents manage their companies smoothly and ensure compliance with local laws.

Portugal’s digital residency program, combined with its business-friendly environment, makes it an ideal choice for entrepreneurs looking to access the EU market while managing their operations remotely.

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Stepping Into The Portugal Landscape

With over twelve years of experience, the House of Companies team has been empowering entrepreneurs around the world to launch their businesses.

Did you know that you can register a branch in Portugal in as little as one day?

Are you wondering if a notary is required to register a branch in Portugal? The good news is that it is not necessary.

By using our Entity Portal, entrepreneurs starting their business in Portugal can rest assured they’ll be able to open an IBAN payment account with ease.

While forming a local company, such as an Lda (limitada), remains popular, more and more entrepreneurs are opting to register a branch in Portugal. House of Companies has been a pioneer in helping entrepreneurs globally achieve this with less reliance on costly advisors and notaries, making the process smoother and more cost-effective.

Can someone
who isn't a
resident of
Portugal still
start a company?

How about we discuss your choices?

Absolutely! One of the great advantages of Portugal is that you don’t need to be a resident to launch a business there. You can establish your company as long as you have a registered address in Portugal and meet the necessary legal requirements. To get started, you'll need a local agent to represent your interests and officially register your business with the Portuguese Commercial Registry.

While the process might initially seem daunting, with expert guidance, you can swiftly navigate through the steps and have your business up and running in no time. Entrepreneurs from all around the world are drawn to Portugal for its robust economy, strategic location, and business-friendly environment.

So, don’t let being a non-resident hold you back—take full advantage of the opportunities available and turn your business vision into reality in Portugal!

Choose Between The Branch And The Private Limited Company.

How about we discuss your choices?

An efficient way to establish a presence in Portugal without setting up a full-fledged corporation is by opening a representative office. This type of office serves as a valuable intermediary, bridging your company with potential partners and customers in Portugal.

A representative office offers numerous opportunities, such as networking, market research, and uncovering business prospects in the Portuguese market. While it cannot generate direct income, it provides a strategic and low-risk approach to entering the market.

When you're ready to expand and start generating revenue, your representative office can be converted into a full-fledged branch. This transition allows your business to register for VAT, become an Employer of Record, and gain additional operational flexibility within Portugal.

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