Portugal Company Incorporation
Setup a Company in Portugal

Setting up a company in Portugal

Portugal is an attractive destination for company formation due to its stable political and economic environment, and its membership in the European Union. Setting up a company in Portugal typically involves the following steps:

  1. Choose a company name: The name must be unique and not similar to existing companies.
  2. Register the company: This step involves submitting the necessary documents, such as the articles of association and the statement of the company's registered capital, to the Portuguese Commercial Registry.
  3. Obtain a business license: Depending on the type of business, a specific license may be required.
  4. Register for taxes: All companies in Portugal are required to register for taxes, including VAT and corporate income tax.
  5. Open a bank account: To start business operations, a company must open a bank account in Portugal.
  6. Appoint the management board: The management board is responsible for the company's daily operations and must be appointed by the shareholders.

It's important to note that the process of company formation in Portugal may take several weeks, and it's recommended to seek the assistance of a local lawyer or accountant to ensure that all the legal requirements are met. Overall, Portugal offers a stable political and economic environment and its membership in the European Union provides access to a large market and the ability to conduct business with other EU member states. The country is also known for its business-friendly tax regime, its reputation as an international finance center and its highly educated workforce. Additionally, the country has a great climate, good quality of life and a rich culture that makes it an attractive location for expats.

Portugal offers a variety of company structures that are suitable for different types of businesses and investment activities. These include:

  1. Sociedade Unipessoal de Responsabilidade Limitada (Unipessoal Limited Liability Company): This is a type of company that is owned and run by one person, with limited liability protection for its shareholders.
  2. Sociedade por Quotas (Limited Liability Company): This is the most common type of company in Portugal, and it offers limited liability protection to its shareholders. A Limited Liability Company is required to have at least one shareholder and one director, and its shares cannot be offered to the public.
  3. Sociedade Anónima (Public Limited Company): This type of company is similar to a Limited Liability Company, but it can offer shares to the public and is required to have at least two shareholders and two directors.
  4. Sociedade em Comandita Simples (Simple Limited Partnership): This is a type of business in which one or more partners have limited liability, while one or more partners have full liability.
  5. Sociedade em Nome Colectivo (General Partnership): This is a type of business in which two or more individuals share ownership and management responsibilities.
  6. Branch office: Foreign companies can also set up a branch office in Portugal which is an extension of the parent company and is legally and financially separate.

It's important to note that each type of company has its own legal and financial requirements, and it's recommended to seek the assistance of a local lawyer or accountant to ensure that the chosen structure is appropriate for your business and that all the legal requirements are met.

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Frequently asked questions (FAQ)

Everyone has questions forming a corporation or LLC. You are not the only one. Therefore we have put together this FAQ page to address the most important issues.

See below for the questions we hear the most, and read the answers you need to know. If you don’t see your question below, please call or email us.

What is the process for forming a company in Portugal?
What are the benefits of incorporating a company in Portugal?
What are the requirements for directors and shareholders of a Portugal company?

Learn more

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