portuguese company register
Registering a company in Portugal is one of the investment methods for immigration to Portugal. There are several types of companies that can be registered in Portugal, including:
- Private limited company (Lda)
- Public limited company (SA)
- Limited liability company
- Limited company with share capital
If you intend to immigrate to Portugal through company registration, you must choose one of these company types based on your conditions and investment amount.
The process of registering a company in Portugal is not particularly difficult and includes steps such as verifying the company name, appointing a company director, creating the company’s articles of association, opening a bank account, and more.
The cost of registering a company in Portugal is approximately 435 EUR, provided that the company name has already been approved. Furthermore, by obtaining a Portuguese investment visa, you can also apply for residence permits for your spouse and children.
In this context, the expert consultants of Malekpour institution have prepared this article with the most up-to-date information to assist you. Therefore, it is recommended reading this article thoroughly and contacting MIE to receive free consultations on company registration in Portugal or other immigration routes to Portugal.
You can also ask your questions in the comments section, and you will receive a response in a short time.
Topics Covered in This Article:
Advantages of Company Registration in Portugal
There are several advantages to registering a company in Portugal, some of the most important ones include:
- Suitable Tax System
- Competitive Corporate Tax Rate (around 21%)
- Travel to all Schengen Area countries
- Ability to enter into business contracts with all European countries
- Possibility of applying for permanent residency after 3 years
- Easier access to visas for other countries
- Low startup costs
- Affordable office and business premises rent
- Ease of company registration and setup
- Relatively high unemployment rate and availability of workforce
- Government support for foreign investors
- Grants for investment in less developed areas
Introduction to Types of Companies in Portugal
As in other countries, limited liability companies are among the most popular types of companies. All companies must comply with CSC laws. The types of companies you can register are as follows:
Conditions Required for Company Registration in Portugal
To register a company in Portugal, you must meet the following main requirements:
Minimum age of 18
No criminal convictions
Legal capacity to establish a company
Sufficient minimum capital
Detailed description of the company’s activity
A bank account for depositing initial capital
Ways of Registering a Company in Portugal
There are three ways to open or register a company in Portugal: online, in-person using a government scheme, and in-person through the traditional method. You can register your company online for about 360 euros, and this process will take one to two days. Therefore, to start a business, you need to apply for an electronic certificate.
You can also use the EMPRESA DE HORA or Start on the Ground program. This is a government scheme where the founder and their partners can register their company within one hour by paying 360 euros. However, for this method, all partners and legal representatives must be present, and all necessary documents must be ready.
If you are unable to register your company using the two methods mentioned, you can do so by being present in Portugal and following the steps below:
- Obtain a certificate of acceptance for your company name through the Notary Public Registry (IRN).
- Obtain the company card and the charge card (the primary business identification document in Portugal) from the IRN.
- Open a business bank account and deposit the initial capital into it.
- Report your business commencement to the local tax office.
- Register your business and company in the commercial registry.
- Register as an employer with the local social security office.
Required Documents for Company Registration in Portugal
As mentioned above, preparing and providing the necessary documents for company registration in Portugal is one of the most important steps. The required documents for company registration in Portugal are divided into two categories: one set of documents is related to company registration, and another set is related to obtaining a visa. Below are the required documents for company registration in Portugal:
Preparing and providing the company’s articles of association
Providing the signed confirmation of the company’s partners
Certificate confirming the company name
Providing a business plan
Documents for opening an account in Portugal
Lease agreement for the company building
Providing passports and identity documents of all shareholders
Providing a certificate of no criminal record for the shareholders
Proof of financial capability
Cost of Company Registration in Portugal
The cost of registering a company in the first year is approximately 6,000 Euros, and for the next two years, the annual company fees will be free. The average cost of each transaction is 15,200 Euros, which includes company mergers, opening accounts, and other government fees. In Portugal, you can register companies either online or in person. The in-person registration fees are as follows:
In-Person Company Registration Fees:
| Amount | Registration Fee (Euros) |
| 435 | Fee if the company name has already been approved |
| 360 | Fee without company name approval (for companies with pre-approved names) |
Online Company Registration Fees:
| Amount | Registration Fee (Euros) |
| 180 | Fee for pre-approved articles of association |
| 380 | Fee for articles of association |
If a company has a trademark corresponding to its business activity, 100 Euros will be added to the amounts mentioned above. Additionally, if a new trademark is added, an extra 44 Euros will be charged.
The accounting fee for company registration is at least 80 Euros per month.
Steps to Register a Company in Portugal
If you wish to register a company in Portugal, you must be attentive to the steps of company registration and required documents, as any deficiencies or errors in the process could prevent you from successfully registering your company.
Applicants can choose to apply for company registration in Portugal either online or in person. The company registration process involves 7 main steps, as outlined below:
- Check the Company Name
The first step is to check and reserve your company name at the Portuguese Commercial Registry Office. You can choose your own name. It takes about 15 days to reserve the name, and you must pay a government fee.
Once the name is confirmed, you have up to 3 months to proceed. You can also choose a pre-approved name, which is a cheaper option. - Appoint the Company Director
In the next step, you must appoint an official representative (director(s)) for your company. - Draft the Company’s Articles of Association
At this stage, you need to prepare your company’s articles of association. This step can be outsourced to a skilled Portuguese lawyer. - Open a Bank Account
At this stage, you must open a bank account and deposit the company’s authorized capital (starting from 1 euro). You can also contribute to the capital in non-cash form, but the value of non-cash assets must be evaluated by an independent auditor. - Prepare and Submit Documents
You will need to submit documents to establish the company, such as the articles of association and the signed approval of the partners. This process is done online.
For setting up a company in Portugal, non-residents (individuals or legal entities) must obtain a tax number (tax identification number). EU residents can get it directly from the tax office, while non-EU nationals must appoint a tax representative. - Register with the Business Registry Office
At this stage, you need to register your company at the business registry office. Required documents include the certificate confirming the company name, company documents including the articles of association, and any additional documents if necessary. - Register as a Taxpayer
In the final stage, you must register your business as a taxpayer (all companies have a tax number) and register as a social security contributor.
Company registration in Portugal takes a maximum of 5 business days.
Company Taxes in Portugal
All limited and registered businesses in Portugal pay corporate tax. If you own a company in Portugal, the amount of corporate tax you pay depends on your profits. In addition to corporate taxes in Portugal, you must also pay additional fees to your local municipality.
If your company pays over 10,000 euros annually, you must register for VAT. Companies in Portugal are required to file an annual corporate tax return and make payments in installments. Before calculating your gross profit, you can deduct a wide range of expenses.
Businesses pay a flat corporate tax rate of 21% on any taxable profits in Portugal. This rate has gradually decreased over the past decade and is slightly below the European Union average (21.9%). Businesses in Portugal may also need to pay additional fees beyond their corporate tax bills, including:
- Up to 1.5% additional local costs (DRAMA) on profits received by the local municipality
- 3% additional government cost (DRAMA Estadual) on profits between 1.5 million euros and 7.5 million euros (2.1% in Madeira, 2.4% in Azores)
- 5% additional charge on profits between 7.5 and 35 million euros (3.5% in Madeira, 4% in Azores)
- 9% additional charge on profits over 35 million euros (6.3% in Madeira, 7.2% in Azores)
Small and medium-sized businesses can benefit from a reduced Portuguese corporate tax rate of 17% (11.9% in Madeira, 12.5% in inland areas) on their first 25,000 euros of taxable profit.
Business Visa for Company Registration in Portugal
To obtain a business visa for registering a company in Portugal, you must provide the following documents:
- Passport:
Your passport must be valid for at least 6 months after your entry into Portugal. - Visa application form:
You can download the visa application form from the website of the Portuguese embassy or consulate in your country. - Two recent passport-sized photos:
The photos must have been taken within the last 3 months. - Accommodation proof:
This can be a hotel reservation or a rental contract. - Financial documents:
You must show that you have sufficient funds to cover your stay in Portugal. This can be in the form of a bank statement or a letter from your bank. - Company registration document:
You need to provide documents proving that your company is registered in Portugal. - Travel itinerary:
This can be a flight ticket or a travel plan showing your entry and exit dates.
Residency in Portugal through Company Registration
Portugal’s positive financial balance since 2014, along with its ranking of 30th in terms of creating job opportunities and income, has made it one of the main destinations for those wishing to register a company or establish a startup to obtain residence.
Compared to company registration, the startup visa is obtained more quickly. With a startup visa, you will have permission to work in Portugal, and at the same time, your family members will have the right to study.
Additionally, if the parents of the applicant are under the applicant’s guardianship, they will also be granted residence through investment in Portugal. The applicant has the right to bring their spouse and children with them. However, the legal age for dependents is 24, and beyond this age, or if the individual marries at a younger age, they will no longer be considered dependents and cannot accompany the parents.
Frequently Asked Questions Regarding Company Registration in Portugal
How many types of companies can be registered in Portugal?
Depending on the initial contribution and the number of members, one can establish one of four types of companies: private limited company, public limited company, limited liability company, and limited liability company with share capital.
Is obtaining residency in Portugal easier through starting a startup or registering a company?
Portugal is very welcoming to startup projects, and obtaining residency through this method is significantly easier than through company registration.
Can residency in Portugal be obtained through fake companies?
No, the registered companies must be fully legitimate and engage in economic activities.
How is the income tax rate in Portugal?
The income tax rate is very reasonable and average.
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