Open a Joint Venture in Portugal
Companies uniting resources are known as joint venture companies in Portugal and are established for generating even more profits. In this matter, a temporary agreement might stand at the base of forming a joint venture in Portugal. The schemes through which joint venture companies are established can be explained by our team of company formation specialists in Portugal. They can also assist you in forming any type of company in Portugal.
What are the steps for creating joint ventures in Portugal?
There are several schemes and structures through which joint ventures are created in Portugal. According to the Company Act in Portugal, an association, a partnership, a consortium or a complementary group of companies can form joint venture companies, once the specific business activities are established. Opening a consortium means creating an agreement in this matter and being subject to the following:
- Developing and implementing a series of acts to carry out specific activities of one of the companies.
- Company members can fabricate products and sell them on the market.
- A consortium can exploit the natural resources in Portugal.
- Specific projects can be implemented on the market if developed by a consortium.
The common activities and objectives stand at the base of joint ventures, including a consortium, the type of entity which can carry out any kind of activities as long as it respects the applicable legislation in Portugal. The experience of our company formation agents in Portugal in sustaining foreign investors opening companies in this country is recommended for entrepreneurs wanting to set up joint ventures in Portugal.
Creating an association in partnership in Portugal
Joint ventures take varied forms and among these, foreign entrepreneurs might be interested in association in partnership where two or more business entities participate in both profits and losses, if a contract in this sense is accepted. An association in partnership can have a contributor who deals with raising funds in the firm and a director or associate who carries out the activities and manages the company’s business direction on the market. It is important to know that the associate is directly responsible for any damages and losses that might occur and might involve the contributor part of the association. Because it is not mandatory to establish a written agreement in this matter, these types of associations can enjoy privacy and stay anonymous.
Joint ventures as CGCs in Portugal
Joint ventures can be established as complementary group of companies or CGCs in Portugal. CGCs have a legal status and are registered with the purpose of improving the performance conditions of economic activities of a corporate entity or of an individual with legal personality. It is important to know that entities creating the CGC have mutual responsibility in matters of debts. The registration of a CGC in Portugal is made with the Portuguese Trade Register if the Articles of Association are provided. If you are interested in this kind of business entity, we kindly advise you to get in touch with our team and find out more details in this matter.
How do I create an EGEI?
The European Group of Economic Interests (EGEI) is another form of joint venture accepted in Portugal with the mention that such an entity can be established to upsurge and sustain the collaboration between European companies within EU. This means that Portuguese companies can enter a joint venture with the ones from any European country. The Portuguese Companies Code comprises the general provisions for forming EGEIs in Portugal as general partnerships. The joint liability is applicable to EGEIs in Portugal, even for members that leave the group at a certain point.
The registration of JVs in Portugal
Joint ventures in Portugal can be established under certain rules, among them the necessity of the personal documents of the stockholders. The following matters should be considered when creating a joint venture in Portugal:
- • Just like any other type of company, a JV needs the Articles of Association.
- • The admissibility certificate shows that the name of the company can be used in Portugal.
- • At least EUR 50,000 represent the share capital which needs to be deposited in a local bank account.
- • A written agreement is needed for consortiums serving as joint ventures in Portugal.
Foreigners should know that all the documents need to be translated into Portuguese and then drafted to the Trade Register.
If you are a foreign investor who wants to open a joint venture in Portugal, we recommend you to give us a call and find out detailed information in this matter.
