Company Set Up In Portugal
Rugged cliffs and picturesque seaside towns are just a fraction of the things beautiful Portugal has to offer to foreign investors. Apart from the booming tourism sector, Portugal has a thriving service-based economy and recent growth within the automotive, information, biotechnology, and renewable energy industries.
In fact, working in commerce and agriculture-related industries may also make you eligible for tax relief.
With its favorable climate, both geographical and business, investing in Portugal is both attractive and easy. Moreover, the land is conveniently linked to mainland EU as well as overseas markets via an extensive network of flights, roads, and railroads.
Portugal offers one of the lowest company operation costs in Europe and well as an incentive package for foreign investors. The country’s membership in the EU is also noteworthy since it opens up new markets for you to tap into.
With favorable tax incentives, a strategic location, proximity to lucrative markets, minimal legal requirements, and a simple process, Portugal is the destination of choice for many foreign investors.
Forms Of Companies in Portugal
- Lda. “Limitada”—limited liability company
- S.A “Sociedade Anónima”— public limited company
- CRL “Cooperativa de Responsabilidade Limitada“—limited liability cooperative
- SGPS “Sociedade Gestora de Participações Sociais”—holding cooperation
What is the difference between Lda. and SA companies in Portugal?
In Portugal, most foreign investors opt for one of the limited company types.
Most entrepreneurs choose to establish an Lda. in Portugal as the minimum capital deposit required by the government is only EUR 2.
A Portuguese SA corporation may trade at the Public Exchange Market and offers a minimum share of EUR 50 000.
Fundamentals Of A Limited Liability Company
Corporate Tax in Portugal | VAT in Portugal |
|---|---|
21% | 23% |
Fundamentals of limited liability companies in Portugal
| Limited liability company | Sociedade Por Quotas (LDA) |
| Minimum Share capital | 1 EUR each Shareholder(1200 EUR) |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
| Local Director required | No |
| Other requirements | No |
| Bank signatory must travel | Yes |
| Timescale for company formation | 5 days |
| Timescale for bank account opening | 7 day |
| Timescale for obtaining VAT number | 14 days |
| Statutory audit requirements | No, if income is below 3M |
| Shelf companies available | No |
How can I set up my company in Portugal?
Establishing a business outside your jurisdiction can be intimidating, but CompyCo is here to coordinate and guide you through the process. Through our network of licensed professionals, we make each step smoother and ensure you have all solutions in one place.
These are the steps:
First, we will coordinate the collection of due diligence documentation and request three company name options from you.
Once a name is approved, our network professionals will prepare the Articles of Association.
Setting up a business bank account usually requires a one-day visit from the directors; we will arrange this with the relevant banking institution.
Procedures with the Portuguese authorities include registering the foreign shareholders and directors with the Tax Agency and obtaining their personal Portuguese Tax ID (Número de Identificação Fiscal, or NIF).
Registration for VAT and other social contributions will be coordinated on your behalf.
For some business activities, obtaining a business license may be required; this will be the final step.
Company registration can also be completed online if requirements are met — in such cases, formation takes only 5 days. CompyCo will advise if this option is suitable.
For many foreign investors looking to enter European markets, Portugal offers one of the most viable opportunities. With stable political conditions and a growing base of international businesses, it is an attractive environment to expand into.
CompyCo has the experience and skills to coordinate your market entry in Portugal through our wide network of licensed professionals. This allows us to bring together all necessary solutions in one place, tailored to your business needs.
Our trusted network includes experts in banking, taxation, incorporation, and HR who can guide you through key decisions and help ensure compliance with local requirements. From selecting the most suitable company form to arranging licensing and HR processes, CompyCo coordinates the logistics so you can focus on developing your business.
Bank Account Opening
Portugal boasts of some of the most modern banking systems in the world, with a combination of private and public national banks, as well as international banks. For a business owner setting up outside your jurisdiction, it’s essential to meet this requirement for registering your company.
Opening one in the country where you’re setting up your company will lead to long-term efficiency and convenience for you.
Every bank has its own set of requirements, which may range from the type of business activity you’ll engage in to your country of residence. However, there are certain requirements that are usually common among all financial institutions; these are:
- Proof of business address for your company
- Any identifying documentation, which may include your passport or national identity card
- Your Portuguese NIF number
In some circumstances, you could open your bank account remotely, but you’ll have to consult our experts in Portugal to find out more about that before you go ahead.
Need more information about opening a bank account? Head over here.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration:
- The tax year is the calendar year in Portugal
- taxable profits are trading profits, investments and selling assets for more than their original cost
- All businesses must keep accounting books
- The corporate income tax is levied at 21%. Local tax of 1.5% (Derrama) is applicable in some cases
- In Portugal, the current VAT rate is 23% on most goods and services. Exceptions apply
Portuguese companies are issued VAT numbers with the format of the country code PT followed by a 9-digit number which ends with a letter
How can you employ staff in Portugal?
If you’re setting up your company outside your jurisdiction, especially in a country where you don’t speak the language, it can be challenging to navigate recruitment and employment regulations. Employment laws differ across jurisdictions, making it essential to work with professionals who specialize in the field.
CompyCo has the experience to coordinate recruitment and HR solutions for your business in Portugal through our trusted network of HR professionals. By connecting you with experts, we ensure that employment agreements, talent acquisition, onboarding, compliance with local regulations, and payroll processes are managed effectively.
For non-resident employers, registering to employ a Portuguese employee can be complex, but with CompyCo coordinating the process, the path becomes more straightforward. In cases where only a single employee is needed to work remotely from Portugal, we can connect you with solutions that may avoid the need for full company registration as an employer.
With access to a skilled and cost-efficient workforce in Portugal, CompyCo’s coordinated approach helps businesses achieve effective recruiting and HR outcomes while staying compliant with local requirements.