How to Retire in Portugal

Portugal provides beaches, golf courses and a European lifestyle to retirees on a budget.

PORTUGAL HAS A LOW COST of living, easy residency options and tax incentives for new residents. This country also has great food, some of Europe's best beaches and golf, excellent infrastructure, and a large English-speaking population. Portugal is a great base from which to explore the rest of Europe.

The Cost of Living in Portugal

Portugal’s cost of living has been rising steadily for the past five years. However, the country remains a relative bargain compared to other Western European places. A couple could live comfortably on 1,915 euros monthly, including 1,000 to 1,250 euros for rent.

The U.S. dollar remains at historic highs versus the euro. However, suppose you’re retiring with a dollar-based nest egg or dollar-based income from Social Security or a pension. In that case, you should set aside at least four months of living expenses as a safety net if the dollar-euro exchange rate moves significantly against you.[ 

The Cost of Real Estate in Portugal

Property prices have risen steadily over the past five years in some Lisbon neighbourhoods and other sought-after locations in the country, particularly in the most touristed destinations along the Algarve coast. Still, buying a home for 200,000 euros or less is possible. Investing in a home of your own is a smart strategy in a country like Portugal, where the currency differs from that of your home country. Buying a home removes housing costs from your monthly retirement budget and eliminates any long-term currency risk concerns on that portion of your expenses.

Banking in Portugal

While living in Portugal, you should open a local bank account. You can use your Portugal account to pay local bills and expenses while also keeping your account back home. This will save the cost of bank transfer fees and concern over daily exchange rates. Note that banks in Portugal open at nine or 9:30 a.m. and close at 3 p.m.

Becoming a Resident of Portugal

Portugal’s Golden Visa program is one of the best residency programs in Europe. It offers multiple options for obtaining an investor’s visa in Portugal, including an investment of 280,000 or more euros in real estate. As a legal resident, you can access local public schools and health care.

Under Portugal’s Golden Visa program, you become eligible for Portuguese citizenship after five years of residency, and you can include family members as part of your citizenship application. When you qualify for citizenship in Portugal, you also gain the right to stay in other European countries in the Schengen Area.

Suppose you’re not interested in buying property or investing the required minimum to qualify for the Golden Visa. In that case, you can also be eligible for residency in Portugal by showing enough income to support yourself. The amount of payment required isn’t stipulated formally in the law. Your immigration officer has the discretion to decide whether your income is sufficient. However, 1,200 euros per month or more will generally suffice.[ 

Internet Access in Portugal

You can access high-speed internet in most countries, and 4G service is increasingly available. Still, if good internet is important to you, research the service available in different areas of the country before committing to a region. You’ll find excellent internet service in much of Portugal but not in the most remote spots.

Food Quality in Portugal

The emphasis for cooking and dining out in Portugal is on fresh seafood. Cod is featured on almost every menu, as are tuna and shrimp. Fast food is not typical in Portugal, so don’t be in a hurry to eat and run and expect slow and relaxed table service.

The produce in Portugal is fresh and organic, without the premium you pay for organic food in other countries. All produce is labelled to tell you where it’s from and is usually local. Portugal’s local cuisine may help with weight loss and promote good health. The Mediterranean diet is often regarded as the healthiest in the world.

Owning and Driving a Car in Portugal

You’ll need to invest in a car outside Lisbon, Cascais, or other large cities. Portuguese law requires drivers to carry with them at all times a valid license, vehicle registration, current vehicle inspection certificate, headlight converters, reflective jackets for every person in the car (within reach of the driver), spare glasses or contacts if you have a vision prescription, light bulbs and a first aid kit. The police can and do stop and ask to see these items. If you’re arrested and are missing anything, even your spare pair of contacts, you’ll be liable for a fine payable on the spot. Don’t worry if you don’t have cash to cover the penalty. The police have electronic cash machines in their cars.

Health Care in Portugal

Portugal has a high standard of health care. Hospitals are modern and well-equipped, and many doctors in both public and private facilities speak English. Public health care in Portugal is available to legal foreign residents registered with their local medical centre, and the national health care system covers basic health needs, accidents and illnesses.

Health insurance costs in Portugal are much lower than in the United States. Many ex-pats invest in a private insurance plan that allows them to visit private facilities. Your annual health care policy might cost as much as one month’s premium in the U.S.

The Lifestyle in Portugal

Life in Portugal moves at its own pace. Be prepared to run into administration and bureaucracy when setting up your new life overseas. Don’t fight it. Embrace the slower gait. If you accomplish one task in a day, consider that a win.

Relocating to Portugal?

We at AtoZ Serwis Plus can make your life easier; we’ll assist you in opening a bank account in Portugal.

When moving to Portugal, please ensure your money is in the right hands by opening the correct bank account. Whether you’re working, studying, or retiring to Portugal, there are a range of options for your needs.

Opening a bank account in Portugal

Most banks in Portugal require you to visit a local branch to open a bank account, although a few allow you to open a Portuguese bank account online. How to open a bank account in Portugal varies slightly from bank to bank, but as a rough guide, you must go through the following procedures.

We will help you to open a banking account in most of the banks in Portugal. If you don’t speak Portuguese, don’t worry; we are here for you, and most of our banking officers speak fluent English.

Before opening your bank account, we need to obtain certain documents, such as;

• proof of ID (e.g., a passport)
• proof of address (e.g., utility bill)
• pay slip or proof of employment (Declaration as self-employed, if the case)
• your Portuguese NIF number

If you are opening up a non-resident account in Portugal, you will usually have to provide details of your overseas address used for tax purposes.

You will also need to provide any information specific to the account you are opening, like proof of studying if opening a student bank account in Portugal, along with the minimum deposit (usually 50 euro). Some banks may ask for a residency or citizens card if they stipulate that you must be a Portuguese resident to open a specific type of account.

Once you have completed the application and submitted the necessary documents, the process is complete, and your account is open. The whole thing usually takes around 30 minutes. You will receive any credit and debit cards associated with the report at your home address within a few days.

Americans seeking quality of life and free Healthcare in Portugal

Ask any expatriate why they left the United States and chances are you’ll get some variation of: To live in a country where my retirement dollars go a lot farther without sacrificing quality of life. And while quality of life is a bit abstracts, healthcare is arguably the major determinant. Sure, you could live in some third-world country for pennies a day, but when you need help, you want John’s Hopkins, not Jack’s house of snake oil. Portugal has what seems like an oxymoron in the United States; high quality medical care at an affordable price.

So, what does affordable mean and where does health insurance fall into this picture. Indeed, does health insurance even exist in a country with socialized medicine? And what about prescription medications? In this article, we’re going to address each of these.

Cost of Medical Treatment

The United States has by far the highest healthcare costs in the world, a staggering 61% higher than the next country (the Netherlands) . For this reason, the idea of not having medical insurance in the States is simply terrifying. Even with health insurance, a life-threatening illness (such as cancer) can be ruinous to a family.

In Portugal, you don’t really need health insurance because quality medical care just doesn’t cost that much. Let’s say you needed a tonsillectomy; under the public health system it’s completely freeiii! That’s for the entire procedure including an overnight in the hospital. The downside is that you may need to wait several months* for the procedure, but in the end, you still get excellent care. If you don’t want to wait, you can still go to a private hospital and have the same procedure done much faster. You just need to pay for it. But even then, it’s affordable. While the average cost of a tonsillectomy in the States is $5500 , the same procedure in Portugal (both without insurance) is only $1,100 . Hip replacement surgery in the US (without insurance) averages $39,300 . Here in Portugal it’s only $6,600iii.

*Obviously patients are triaged. Those with critical or life-threatening needs are seen immediately.

Health Insurance

Even though Portugal has socialized medicine, many people still have private health insurance, but not to ensure superior care. Indeed, many of the same doctors who work in the private hospitals also work in the public ones. In Portugal, health insurance is more of a time saver. With private health insurance, you can go to a private hospital and be seen and treated much faster. Though as mentioned before, one need not have insurance to be able to go to the private hospitals.

So, what does health insurance cost in Portugal? For my wife and I (ages 58 & 52) it runs $165 per month…for both of us! With no deductible! A far cry from the $800/month and $5,000 per person deductible that we were paying back in the States. We happen to be with Allianz (a German company) but there are many companies to consider. Most banks offer policies, but I would suggest that you use a broker (as we did) and that you read the fine print. For example, if you are over age 55 when you take the policy, some companies will drop you when you hit age 75. Others do not have this stipulation, but it’s something to know going in. Also, some won’t cover pre-existing conditions. Just read the entire document before you accept it. This is an area where having a local source of help is invaluable such as the folks at Prisco Business group!

Cost of Prescription Drugs

Back in the States, I was on Eliquis™; a blood thinner that was not covered by my insurance. Even with a coupon from the manufacturer, a one-month supply would cost me around $480 . That same drug in Portugal (there is no generic yet) costs me $77iii, and that’s without being on the public system. With the public health discount, the cost is around $20. Many more examples could be listed, but suffice it to say, the cost of prescription medication is lower as well. Which brings us to our final point.

Do You Need Medical Insurance at All?

It would be remiss for anyone to suggest NOT having insurance. Perhaps the take-away from all this is that you COULD choose to go with-out and not face the crippling medical expenses found back in the States. On the other hand, the cost of insurance (and by extension that peace of mind) is also affordable. The point is, there is a very real safety net here. Whether or not you have insurance, you will always have access to high-quality medical care at affordable prices. And, as a result, THAT is why so many expats arrive on the shores of Portugal each year!

D2 Visa Portugal -Entrepreneurs

Residence Permit for self-employed Workers

The D2 visa also called the Visa for Immigrant Entrepreneurs, gives resident status to immigrants who plans to involve themselves into investment activities in Portugal. The legal basis for this ‘D’ type visa can be found in article 60(2) of Law No. 23/2007 from July 4, and regulated by article 31(2)(3) of Regulation Decree No. 84/2007 from November 5. and Paragraph 2 of this article 89 was amended by Law no. 59/2017, pf07/21 and fourth amendment to the Aliens Act in force since 1st August’ 2917.

In basic terms, you have to establish and invest in your company in Portugal, pay social security, have at least a minimum salary, own no debts and no criminal records, in the scope of a well-defined business plan, which will be analysed by the authorities, on an investment level, for it’s prospective economic, social, scientific, technological, or cultural relevancy.

HOW CAN WE HELP

PRISCO’s legal team can assist you to start a company and get all your residency affairs in order, providing a one-stop shop for all your needs in connection with your relocation to Portugal.

Our aim is to provide you with a smooth landing in Portugal, based on your requirements,  providing  guidance, information and assistance to investors and those looking to relocate to Portugal, successfully acquiring visas for families and individuals.

COMPANY FORMATION

Public and private limited liability companies can be easily set up in Portugal, following these steps:

• Verify the business name and make a reservation with the Portuguese Trade Register.
• Appoint a legal representative for your company in Portugal.
• Draft the Articles of Association with information about the owners, business activities, etc.
• Open a bank account for depositing the share capital of a minimum EUR 1,00.
• Apply for licenses and permits in accordance with the company’s activities.
• Register for tax purposes and social contributions in Portugal.
• Appoint an official accountant (mandatory).

Documentation required:

All documents must be in English (or translated into English by a certified translator)

The entire process and timeline are divided in the following 7 steps:

1) Signing our services agreement, payment of retainer fee, and submission of personal information package.

• Proof of address (translated into English by a certified translator),
• Passport valid for more than 6 months beyond the planned departure date,
• Criminal records certificate, issued less than three months from the time of submission (from the country of origin or where the applicant lives or has lived for more than a year), authenticated by the respective Ministry of Foreign Affairs.

In case you are not able to come to Portugal to begin your process, we can incorporate your company and apply for the personal documentation by power of attorney, it will take up to 3 days to be issued and fully incorporated.

2) Appointing our lawyer as legal representative, signing our Power of Attorney to obtain your TAX number – NIF.

3) Drafting the articles of association with the information about the owners, business activities, registration of a commercial company name, incorporation of the company, virtual office registration, opening a private and corporate bank account, registration with the NISS (VAT/Tax), minutes book, and registration of starting activity.

4) Obtaining the documentation response from the government bodies. (This wait period could take up-to 15 days, it is subject to government processing times and is not under our purview.)

5) Our dedicated lawyer will create an online immigration account at S.A.P.A., and submit all the required files.

** You must be already in Portugal for this step and must remain in Portugal until step 7 is completed.

6) Awaiting immigration office validate your residence permit application request. Once confirmed, the immigration office will send you an email confirming your request . We need to choose the nearest available location, date and time for your appointment.

7) On the appointment date you need to show all requirements file. We will obtain recent copies of all documents in order to present to the immigration office. The officer will collect your biometrical data and make a digital photo. After the interview you will receive a protocol number and a declaration that you have to wait a decision within 60 days. They will mailing your Residence Permit Card to your home address. Time may vary, subject to government processing times.

Total entire process time from obtaining the D2 Visa, personal documentation, company formation and residence permit application is around 8 to 12 months, vary case by case, subject to government processing times.

Family Reunification

As soon as you receive your residence permit, permanent or temporary, you also need to provide documentation of sufficient funds to support your family and you will also be responsible for providing accommodation for your family members.

AoZ Serwis Plus can also help you to make the family reunification and secure residency cards for your family.

In terms of climate, Portugal’s winters are mild and summers are hot and dry. The number of hours of sunshine per year reaches values as high as 3300 in the south of the country and 1600 in the north, some of the highest in Europe.

The Portuguese are gracious and friendly, welcoming all visitors regardless of where they come from. And, in fact, visitors do come here from all over the world, as the country is located on the western coast of Europe and, as such, is a point of entrance into the Schengen zone. A large part of the population speaks foreign languages, specifically English and French. 

Portugal benefits from an excellent geographical location, being strategically located in the center of the world, at the meeting point between three continents – Europe, Africa and America -, it has always been central to the most important international routes. It has international airports all over the country – Lisbon, Faro and Porto that have regular connections to major cities in the world.

For instance, Lisbon and Porto, the two biggest cities are just two and a half hours away from Paris and London by plane. 

Politically speaking Portugal has nine centuries of well defined geographical borders, a democratic parliamentary regime with political stability. Portugal is a member of the European Union and forms part of the European Monetary System, using the European single currency. It is currently viewed as the 3rd most peaceful country in the world among 163 countries (Global Peace Index 2017) and ranks 29th of 176 countries in Transparency International (Corruption Perception Index 2016).

In terms of health,life expectancy at birth in Portugal is 81 years, one year above the OECD average. Life expectancy for women is 84 years, compared with 78 for men. Portugal public health system is free and everyone can benefit from it, but private hospitals have been spreading throughout the country in the last years.

Major international schools and universities are present in the country with a vibrant and increasing community of foreign students.

Portugal is one of the most peaceful countries in the world with a high quality of life for its residents. It also has one of the youngest workforces in the world and, in terms of business, operating a company in Portugal does not cost you a ton of money. Investing in Portugal can be one of the best business decisions you will make. Its economy is moving upward with an annual growth rate of approximately 0.8 percent. Company formation in Portugal is also easy. Let one of our company formation agents in Portugal help you decide on why you should invest in Portugal. Before you decide to open a company in Portugal, it would be wise to take a look at some of the important factors that can stand at the base of your investments in Portugal.

Investing in real estate sector

The Golden Visa scheme is perhaps one of the most attractive reasons why you should invest in Portugal. It is a scheme wherein you can acquire residency when you purchase a property in Portugal. This means that company incorporation in Portugal could result to businessmen gaining residency once there is an investment in property, with minimal legal requirements and maximum benefits. With a minimum investment of €250,000.00 on property, you can already reap the benefits of this scheme.

Being part of the European Union

Portugal’s membership with the European Union is another important factor to consider if you want to set up a company in Portugal. Membership of the European Union means common currency and free movement and trade within all member states. Portugal is one of the leading members in the European Union in terms of providing services, biotechnology and information technology.

Foreign investment incentives

Foreign investments are one of Portugal’s top priorities. The government considers them as one of the most important factors in bringing about economic growth. This is the reason why its government has imposed lesser restrictions on its foreign investments as compared to other countries. It allows foreign investments in all activities under the private sector. If you plan to engage in governmental activities, all you have to do is to secure an approval from the government. This is just another reason why you should invest in Portugal.

Knowledgeable workforce  

In Portugal you will find a workforce that is young, brilliant and energetic. The Portuguese universities have seen the highest enrollment rate in recent years and they are expected to produce qualified graduates in upcoming years. Its universities have also partnered with schools like MIT in order to boost student knowledge in science and technology. Once you open a company in Portugal, you can be assured to have quality employees at your disposal.

Is it hard to open a company in Portugal?

No, the lack of complexities in terms of company formation in Portugal is appealing to international investors of any kind. They can easily set up limited liability companies, joint-stock companies, private and public partnerships or sole proprietorships in Portugal. The private LDA is the private limited liability company, the most common and used business structure in Portugal, and the main choice of foreign investors who are interested in a fast and reliable start on the market. The registration of a Portuguese LDA is not complicated, but it is important to pay attention to the conditions involved, like depositing the minimum share capital of EUR 5,000 in a local bank account or submitting the Articles of Incorporation with information about the owners, their nationality, the business activities, the representatives, the general rules, etc. The support of our company formation agents in Portugal will prove extremely helpful to foreign investors found for the first time with business intentions in Portugal.

Legislation related to foreign investments in Portugal 

The foreign investments made in Portugal are overseen by the Agency for Foreign Investment and Commerce in Portugal, an important institution that activates under the rules of the Investment Law. The legislation related to foreign investments in Portugal clearly states that both local and foreign entrepreneurs have equal rights on the business market, without any restrictions, except the state-owned affairs in the country. If an investment of at least 10% in a Portuguese company is made, this means that the entrepreneur is considered a foreign direct investor who can enjoy the benefits that come with this status. It is important to know that there is no need for a foreign entrepreneur to have a local partner to open a company in Portugal, as he or she can enjoy complete ownership in the firm, with no restrictions imposed. The legislation related to foreign investments in Portugal also mentions the taxation regime applicable in the same way to local and foreign entrepreneurs in matters of corporate tax, VAT, social contributions, etc. The support of the double taxation treaties signed by Portugal acts in a fair manner with the purpose of avoiding any possible financial risks or fiscal evasion. Being part of the European Union, Portugal aligns with the business conditions and directives imposed for all EU countries with no exception. For a better understanding of the legislation related to foreign investments in Portugal and its applicability, we kindly invite you to talk to one of our company formation agents or lawyers in Portugal.

Interesting business fields for foreign investors

Opening an agricultural business or setting up a construction company can be in the attention of entrepreneurs from abroad in Portugal. Also, investors can decide on opening IT companies, financial firms, casinos, trust companies, publishing businesses, restaurants, travel agencies and other types of businesses that can enjoy success in a proper environment and sustained by the Portuguese government in terms of incentives and encouragements.  

Holding companies might be appealing businesses for international investors looking to enlarge their portfolios and generate extra profits. Such companies benefit from varied tax exemptions that can be extremely attractive to foreigners. If you want to start a company in Portugal and need guidance throughout the entire registration process, you should address your inquiries to our company incorporation agents in Portugal.

Portugal in numbers

According to Trading Economics that gathers all the rating information about countries worldwide, Portugal’s credit rating established by Standard & Poor’s is BBB with a positive outlook. Moody’s set the same rating last year in August, believing that Portugal is on the right path when it comes to economic stability. The following numbers, facts and statistics can give confidence to international investors wanting to start a business in Portugal:

• Portugal ranks 34th out of 190 economies in the world, as stated by the 2019 Doing Business report;
•  Portugal is considered the second-largest power plant in the world;
•  the total FDI stock recorded in 2018 in Portugal was USD 135,777 million;
• non-EU investors can obtain Portuguese citizenship for investments of around EUR 250,000 in companies that need to be strengthened.

Portugal is for sure a great business destination for foreign investors, and those interested in this direction can benefit from complete facilities and tailored services from our team of consultants.

Credit rating for Portugal

There are a lot of entities that give sovereign credit ratings that are the credit ratings given to countries and that reflect their political and economic environment. A lot of companies treat these credit ratings as something very significant before deciding to engage in company formation in Portugal. The top three entities that give sovereign credit ratings are: Moody’s, Standard & Poor’s and Fitch. They have given their credit rating for Portugal.

1. Moody’s

They play an important role in the world market. This company has numerous experts and methods at its disposal in order to determine the transparence and integration of the financial market. For Portugal, Moody’s has given a credit rating of Ba1. This means that Portugal has a stable economy and it is not very vulnerable as compared to those with lower credit ratings.
 

2. Standard & Poor’s

This company has been engaged in business for 150 years and has made it that far because of the quality of service it provides to its clients and the amount of effort, expertise, and accuracy it puts in its ratings. For Portugal, Standard & Poor’s gave a credit rating of BB+, from a previous rating of BB. For businessmen who plan to open a company in Portugal, this means that they can expect a stable economy and economic growth to look forward to in the years to come.
 

3. Fitch Ratings Inc.
 

It is one of the few rating companies that has been acknowledged by the United States Securities and Exchange Commission, the entity that has supervision and control over all corporations in the country. It has conducted market research and other financial studies that are very valuable to an investor. Fitch Ratings gave a credit rating for Portugal of BB+.

This means that, despite a few risks, Portugal’s economy is relatively stable with a high chance of improving in the coming years.

Requirements for overseas investors in Portugal

Investors from abroad are invited to discover the numerous possibilities offered by important industries in Portugal, where sectors like energy, IT, communication, agriculture or automotive are among fields where foreign investments are expected. It is good to know that an entrepreneur from abroad can set up a company in Portugal of any kind, without any restrictions in this matter and the same conditions are also applied for local businessmen. The government in Portugal is aware of the importance of the foreign investments in the country, therefore, the legislation is permissive and there are numerous incentives offered in varied areas of interest.

One should know that The Agency for Foreign Investments and Commerce in Portugal is entitled to verify investors with small and medium companies and to guide them for venture capital support and technology transfer to the Institute of Support to Small and Medium Enterprises and Innovation in Portugal. Once you have decided to open a company in Portugal and to start your activities, we suggest you to talk to one of our company formation specialists in Portugal for comprehensive guidance and support.

Regulations regarding the FDI in Portugal 

Overseas businessmen who invest at least 10% in a company in Portugal are considered foreign direct investors and are entitled to make business decisions in that enterprise without any restrictions. We remind that local investors or those from abroad are treated equally regarding foreign direct investment matters and are invited to search the market and to discover the main industries with full potential in Portugal. One should know that special sectors like public telecommunications, water management, maritime and air transport, or defense need particular endorsements from the government regarding the foreign direct investments.

Requirements for financial businesses in Portugal

The National Bank of Portugal oversees the financial activity in the country and issues authorizations for investors wanting to open financial companies.  A particular fact to consider is related to the non-EU investors wanting to open financial firms or to establish a subsidiary in Portugal, where the local Ministry of Finance needs to analyze the impact of such businesses, their efficiency and if they are suitable for the country’s economy among many other aspects.

Conditions for foreign investors in Portugal

Portugal’s economy is mainly service-based. Key sectors include the technology sector, the information, and technology communication sector, the automotive sector, the energy, and biotechnology sectors. 

Foreign investors have the same rights to carry our business and economic activities as local investors. Foreigners can open any type of company in Portugal, however, special authorizations are needed in several sectors. These include the transportation sector, the water management sector or telecommunications. Credit institutions or finance companies in Portugal are subject to authorization from the Bank of Portugal or the Ministry of Finance. 

Our lawyers in Portugal can give you complete details about the laws for foreign investment and the protection of investments. The country has signed a number of double tax treaties and other bilateral agreements. They can also help you register the company for VAT and also obtain the EORI number.

Investment aid in Portugal

The economic environment in Portugal is investor friendly and a series of incentives welcome and encourage entrepreneurs. The national investment authority offers several fiscal measures to encourage investments and employment in areas that are considered economically disadvantaged. Portugal has a foreign free trade zone in Madeira. Tax reductions, tax investment credits, and EU aid funds are available under certain conditions. One of our lawyers in Portugal can give you complete details about the types of investment aid and how you can access them if you want to open a company in Portugal.

Reasons to choose Portugal 

A good position in Europe and proximity to some of the most important markets in the EU is Portugal’s first advantage for investors. The country has good trade relations not only with EU countries but also with the United States, Brazil or countries in Africa. 

The workforce in Portugal is highly skilled and the costs for hiring employees are lower compared to other countries. This can be an important advantage to those investors interested in opening a start-up in Portugal. The country has a talented pool of young workers in fields like engineering or business. The country also has a well-developed transport infrastructure and ICT network

The business environment in Portugal is attractive for entrepreneurs in all business fields, and an important advantage is openness towards foreign investors and foreign employees. Moreover, Portugal has a high quality of life and many investors and expats enjoy living in this climate. The advantageous tax structure in Portugal is another reason for foreign investors to choose Portugal for business. You might want to ask for support for VAT registration and for obtaining the EORI number in Portugal.

Attractive investment fields in Portugal

Portugal has many investment opportunities for those who want to start a company. Among those with the highest potential for receiving FDI, we can list the following: tourism, biotechnology, the electric and electronics sectors, the new information and technology sectors, parts of the chemical manufacturing sector and the shared services centers (such as call centers). 

Companies that operate in some of these sectors need special permits and licenses. One of our attorneys in Portugal can help you apply for these and handle any other issues that may arise during the company formation process.
If you need more reasons to invest in Portugal, we have plenty of specialists in incorporating a company in Portugal. We are more than willing to cater to your needs, so all you have to do is to contact us.

The business opportunities in Portugal are for those who want to take advantage of a proper and respected climate and who want to generate money in an appreciated financial market. Entrepreneurs from abroad can easily set up varied types of companies, with complete assistance offered by our team of company formation specialists in Portugal. When a foreign investor decides to set up a company in Portugal, he/she must decide from the beginning upon the type of company he wants to establish. The Company Law in Portugal sets several types of structures from which a foreigner can choose.

How can I open a private limited company (sociedade por quotas - LDA)?

This type of company is the most common in Portugal. It is usually chosen by foreign investors who want to set up a small business in Portugal. At least two shareholders can establish a private limited company in Portugal, only if they provide a minimum share capital of EUR 5,000. Liability of the founders for company’s obligations only extends to their own contributions to the initial capital.

Can I set up a public company (sociedade anónima - SA)?

Foreign investors who want a medium or large sized company choose this type of structure. Public companies in Portugal require a minimum share capital of EUR 50,000 and at least five shareholders in order to be incorporated. Still, the founders are liable for the company’s obligations only to the extent of their contributions.

What is a limited partnership (sociedade em comandita - SC)?

Partnerships in Portugal are only formed between at least two partners. In order to set up a limited partnership in Portugal, no minimum capital is required. Its particularity is that one partner has to be general and have full liability for the company’s obligations (socios comanditarias), while the other one must have limited liability (socios comanditados).

General partnership (sociedade em nome collectivo - SNC) in Portugal

Just like the limited partnerships, general partnerships also need at least two partners to incorporate them. No minimum capital is required here either. As opposed to the limited partnerships, all the members in a general partnership in Portugal are fully responsible for the company’s obligations and they are able to make decisions on behalf of the company and manage the company. Please feel free to get in touch with our advisors if you want to register a company in Portugal.

What is a single shareholder (EIRL) entity in Portugal?

When only one founder decides to set up a company in Portugal, the only type he can incorporate is a company with a single shareholder. This type of structure is quite simple to set up, but it is rather rarely formed. The founder is liable only for the company’s assets.

 Requirements for opening an LDA in Portugal

Entrepreneurs interested in opening a private limited liability company in Portugal need to bear in mind a few of the important conditions, such as:

• • the private limited liability company can be registered with at least 2 stockholders and a minimum share capital of EUR 5,000;

• • the Articles of Association stand at the base of LDA formation in Portugal;

• • the capital contribution of the LDA is usually stipulated in the Articles of Association and it is represented by shares;

• • there is no obligation for appointing a board of managers for your LDA in Portugal, but a director can run the business.

One should know that the name of the private limited liability company in Portugal needs to contain the letters LDA or the world “limitada” at the end of it.

Establishing a subsidiary in Portugal

A subsidiary is a legal entity that can run under the rules of an LDA if it is a small or medium business or as a joint stock if it is a large company. In any case, a subsidiary is an independent entity from the parent company, it can have the same name or another one as long as it operates with the same activities as the company from abroad. Just like for all companies, a subsidiary must have a representative agent who needs to have residency in Portugal. As for the registration of a subsidiary in Portugal, this starts with the Commercial Registry and the conditions in this matter, like submitting the Articles of Association with information about the owners, and the decision of opening the subsidiary issued by the parent company. We invite you to talk to our advisors and find out how we can help when establishing a subsidiary in Portugal. They can also help you register the subsidiary with the tax authorities in Portugal.

Establishing a branch in Portugal

Setting up a branch in Portugal is subject to an easy incorporation and the whole process can be supervised by our team of consultants. A branch is dependent on the parent company in a foreign country. As for the documents which need to be prepared for establishing a branch in Portugal, we mention the Articles of Association and the decision of opening a branch made by the company from abroad. A branch can run the activities as a limited liability company, it has to be registered with the tax authorities in Portugal and with the Social Security Regional Center. We remind that foreign branches in Portugal are protected from paying the taxes twice (in Portugal and abroad) by the numerous double taxation agreements signed by Portugal with countries worldwide. You can address your inquiries to our company formation specialists in Portugal if you are interested in establishing a branch in Portugal.

We invite you to contact our company incorporation agents in Portugal for more details on any type of structure. We can handle the registration process of your firm, in agreement with your needs.

Portugal is the oldest country in Europe, being recognized as a kingdom since 1139. It became a republic in 1910 and it was known as a powerful maritime country, offering easy entrance for those who were in charge of trading businesses. If you want to open a company in Portugal we invite you to solicit help and guidance from our Portuguese company formation specialists. Moreover, the company registration procedure in Portugal can be easy and ready in time if you provide the necessary documents to the authorities in charge.

Why choose Portugal for business?

Opening a company in Portugal and carrying on businesses can be done in a fast manner, as the authorities have encouraged the foreign investments with the help of several and important incentives. When deciding to relocate to Portugal for small business purposes, it is advisable to analyze the market and the major industries you wish to start your activities in. For instance, Portugal is known for its genuine local goods which are extremely competitive outside the country.

The agriculture, food industry, tourism, wine field are key sectors in Portugal, where numerous entrepreneurs choose to set up their activities. Besides that, you can also direct your attention to the online business opportunities. Financial benefits come with businesses like web design, online marketing, or social media activities, small businesses which can easily generate money. Many entrepreneurs are interested in opening fast foods or restaurants with local or international cuisine in the major cities like Lisbon, Porto, Setubal or Figueira da Foz where tourism is well- developed. The small companies in Portugal are the proper start in most domains for entrepreneurs who want to benefit from the opportunities of an attractive country.

How to open a company in Portugal

A local or a foreign entrepreneur who wants to establish his presence on the Portuguese market can choose from several business entities like the limited liability company, sole proprietorship, limited partnership or a cooperative. We remind that if you want to register a company in Portugal, it is best to seek advice and guidance from our experts in company formation in Portugal. You should consider the following steps when registering a company in Portugal with the Conservatorias de Registo Comercial:

•    choose a name for your small company;

•    draft the Articles of Association;

•    set up a bank account;

•    register for VAT and other social contributions;

•    apply for the proper business license.

Shelf companies in Portugal

An entrepreneur in Portugal might be interested in purchasing a ready-made company instead of creating one from scratch. This is often the proper solution for those wanting to skip the formalities of a company incorporation even though these are simple and subject to less bureaucracy. A shelf company or a ready-made company is already registered and kept on a shelf to age until someone is interested in purchasing it. You might want to direct your attention to a shelf company if you want to start a small business in Portugal as soon as you decide for operations in this country.

What is the Portuguese Trade Register?

Companies in Portugal, regardless of the structure, are registered with the Portuguese Trade Register or the National Registry of Companies as it is known. The institution accepts the incorporation of a firm by an appointed representative and a power of attorney, as long as the requirements for opening a company are entirely respected. The Articles of Association are the necessary documents accepted by the National Registry of Companies in Portugal at the time you wish to open a firm. Moreover, the same authority offers the possibility of registering the business on the internet through the official website of the Trade Register if all the conditions in matters of documents are fulfilled. Having a clear idea about the business requirements in Portugal is necessary to all investors, domestic or from overseas. This is the case in which we recommend you the support of our company incorporation consultants in Portugal.

How can a company register with the Portuguese Trade Register?

Company registration in Portugal can be performed in two different ways. Before starting the procedure, it is important the company’s name to be verified in the database of the National Registry of Companies or Registo Nacional de Pessoas Colectivas. This institution will issue a validation certificate or admissibility, after the name of the company is registered. The same office should also provide a provisional company identity card. You might want to observe the following requirements for registering a company in Portugal:

• • the company registration in Portugal can be done at any registry office or at the Business Formalities Centre;
• • the company registration in Portugal is relevant for the Portuguese Trade Register or Commercial Registry; 
• • the registration procedure can be operated by a shareholder or a legal representative appointed by power of attorney; 
• • the necessary documents for company registration in Portugal are the deed of incorporation and the validation certificate.

The second way for registering a company in Portugal is through a procedure called “empresa online”, where the registration is completed on the Internet. This type of company registration in Portugal is approved and regulated by the National Registry of Companies and can take one or two days, depending on the types of article of association.

What are the necessary documents for company formation in Portugal?

When the company is set up by a legal person, there must be submitted a few documents and if you need assistance in this sense you can talk to our Portuguese lawyers. After you pay the charges provided by the law, the articles of incorporation will be prepared and the registration form will be submitted to the Commercial Register. The members will receive an immediate certificate of association, the access code for a permanent certificate of commercial registration, the electronic access code, the enterprise card and the social enterprise security number. The declaration of commencement of activity must be submitted in term of 15 days to the Financial Services Office and this document must be signed by a chartered accountant.

Within five working days after the constitution, the members are required to deposit the amount of capital (when held in cash) in an account opened on behalf of the newly formed company.

Hiring employees in Portugal

After you set up your company and you want to hire employees, you must pay special attention to the law’s provisions in this field, as the relation between the employer and the employee is overseen by the Portuguese Labor Code in which sets the rules on wages, treaties, benefits, working days and other essential issues. You may choose to hire an employee in Portugal for a fixed period or for a temporary period.  For temporary period contracts, the minimum time cannot be less than six months and when you renew the temporary contract several times it automatically turns into a permanent employment contract. The law establishes a minimum salary and this income is charged with taxes for both parties, for, example the social security contribution and taxes for the pension fund. The probation periods are also paid and there are probations that can last between 30 and 90 days. In Portugal, the average working time is 40 hours per week, which means eight hours per day for five days. However, during the eight hour work, the employees have several breaks. Investors who wish to open a business can explore the existing opportunities for starting a new company or franchising in some of the top business sectors.

Changing the company structure – is it a hard process?

No, changing the company structure is not complex in Portugal, and entrepreneurs can easily transform the sole trader into a limited liability company. However, there are few requirements to pay attention to if you want to change a sole proprietorship (EIRL) into an LDA:

1. The minimum share capital needs to be deposited for opening an LDA in Portugal.
2. A new name for the business (if the owner wants so) and the registration for other tax liabilities are the next step in changing the structure.
3. If the company will have employees, the registration for social contribution is needed.
4. The company secretary and the representative will have to be appointed.
5. The new firm will need a company stamp.

Regardless of the business structure you want to change, the legal aspects will have to be explained by a team of lawyers in Portugal, in order to align with the requirements in this matter. You can also ask for legal advice for EORI registration in Portugal.

What you need to know about the Company Act in Portugal

Based on the Portuguese Commercial Code in Portugal, the Company Act is an important set of laws that comprises information about the types of companies available for business in Portugal, the activities they can develop, the specific legislation for investors from abroad, plus the conditions in which a company can be registered in Portugal. The Company Law in Portugal provides information about the Articles of Association, the company’s main documents, the rights and responsibilities of the company owners and also details about how the company liquidation is made in Portugal. It is good to know that the Company Law in Portugal observes the Labor Code and therefore, the terms and conditions for the employment contract, the rights, and responsibilities of employees in this country, whether they are locals or foreign citizens. 

Knowing how the business runs in Portugal, in agreement with the applicable legislation, will in many cases make the foreign investor decide on the proper type of structure, in agreement with his/her activities. Do not hesitate to address your inquiries to our consultants if you are interested in establishing a company in Portugal.

How can I have access to the Portuguese Trade Register?

The Portuguese Trade Register is open to public access, especially after the information on companies is published in the official journal or on the website. Anyone who wants to find out details about certain organizations can request to search for details in the Trade Register or go online and find the desired data.

How can I open an LDA in Portugal?

A private limited company, or an LDA, as it is known in Portugal, can be registered by foreign investors in compliance with the requirements of the Company Registry in Portugal. As soon as the Articles of Association of the company are accepted by this institution, your company will receive a certification of registration which is necessary for the following stages of the company formation, like registering for VAT, for social contributions and for applying for the company seal. We remind that it is the most popular business structure which can be established with a minimum share capital of EUR 5,000.

Company verification with the Company Registry in Portugal

Before opening a company in Portugal, it is suggested to make a verification for the chosen name, in order to see if another company is registered with such a name or not. The Company Registry in Portugal allows business persons to make a verification in this sense, with a specific form provided by the institution. Also, if you would like to know information about a particular company and information about its shareholders, the capital contribution, the profits, and losses, you can make a verification in this sense with the Company Registry in Portugal and for a specific fee.

Company types in Portugal

Foreigners wanting to open companies in Portugal should solicit information about the available types of structure, in order to decide for the proper business form. Limited liability companies, public and private companies, general and limited partnerships, and sole proprietorships are the types of structures which can be registered by entrepreneurs from abroad who want to expand their businesses in Portugal. Each structure is subject to different requirements, but in most cases, the legislation imposed observes the European directives, plus the local requirements.

LDA, the proper business form for foreigners

Investors from abroad looking to incorporate a business in Portugal can choose the LDA or the private limited liability company, the preferred business structure available. The simple registration formalities plus the opportunity of establishing any kind of activities are a few of the benefits of an LDA in Portugal. With EUR 5,000 as the minimum share capital, a local bank account, a local business address, a shareholder which can also be the director, your LDA in Portugal can be easily registered and ready for business within a few days. You might want to observe the tax benefits linked to an LDA, among which we remind the double tax treaties that protect revenues from the double taxation.

The characteristics of a sole trader

The sole proprietorship is a business developed by a single individual who can perform an activity in sectors such as commercial, industrial or agricultural services. The legal forms for establishing a business for a single investor are a sole proprietorship, a single shareholder in a limited liability company or an individual limited liability establishment. In a sole proprietorship, there is no separation between the personal assets and those assigned to the company, as the individual entrepreneur responds for the debts contracted in the exercise of the business activity towards its creditors, on all goods that comprise the assets.

The sole proprietorship is the type of business that doesn't require to have a minimum capital to start the activities. Also, there is no need for an individual entrepreneur to have a social contract. The sole trader must adopt a firm name (trade name of merchant) made up of his civil name, full or abbreviated, but he may add a nickname by which he is most known in the business world and even the reference to the business and can never take more than one signature.

What are the characteristics of the partnership?

Another form of business is the partnership, which consists of several partners that contribute to the business’ responsibilities as provided in the agreement signed at the constitution moment.

There are several forms of partnerships, for example:

• - the general partnership;
• - the limited partnership;
• - the partnership limited by shares.

In the partnership, the partners have unlimited responsibilities in relation to society’s assets and before the company's creditors. The company must be composed of a minimum of two partners who sign a social pact for the allocation process of profits and losses.

The limited partnership must be composed of a minimum of two shareholders fully responsible for the company’s debts and legal compliance and other shareholders with limited responsibilities. Each of the limited partners is liable only for its entry, while the general partners are liable for the debts of the company. It is a mixed liability company because it gathers limited partners, who contribute to the share capital and partners with unlimited liability who contribute with goods or services, assuming the management of the company.

The consortium consists of the contracts by which two or more persons are obliged to undertake a certain activity or make a certain contribution for the purpose of pursuing any of the objectives set by law. Where the Consortium is considered as external, for example when the activities are directly provided to third parties by the Consortium, one of the members shall be appointed as head of the consortium and must assume the duties of this position, including representation authority.

Obtaining guidance in tax matters from our advisors and getting rid of the bureaucratic procedures in Portugal will help you start your business in a fast manner. Contact our team of company formation agents in Portugal if you want to start a small business in the country.

Deciding on a business in Portugal as a foreign investor can imply finding a suitable business form and that is the private limited liability company or LDA as it is known. Most of the activities can be implemented and developed in Portugal with the help of such a simple business structure that is in the attention of many entrepreneurs looking to generate profits in this part of Europe. Our company incorporation agents in Portugal are at the disposal of investors who are interested in opening an LDA in Portugal.

What is a Portuguese LDA?

A Portuguese LDA comes from a private limited liability company in Portugal, also known as quota or sociedade por quotas de responsabilidade limitada. This is the most common type of business structure in Portugal, especially for small and medium-sized companies.

What is the minimum share capital for an LDA in Portugal?

In order to set up a Portuguese LDA, a minimum share capital of EUR 5,000 is mandatory. This capital is divided into shares and the minimum value for each share is EUR 100. We remind that the capital contributions can be made in cash or in kind. One should know that half of the initial capital in cash has to be paid up prior to incorporation, while the assets must be evaluated by an auditor and then paid in full.

How many shareholders are necessary for an LDA in Portugal?

A Portuguese private limited liability company can be set up by at least one shareholder, regardless of the nationality or residency. If only one founder decides to set up a company, the structure is called sociedade unipessoal por quotas or SUQ. It is good to know that the shareholders are only liable to the extent of their contributions to the company.

What is the management structure of an LDA in Portugal?

The Company Law in Portugal does not mention the obligation to form a board of directors for a Portuguese LDA. The management role can be performed by a managing director who is appointed by the shareholders. On the other hand, the shareholder can also be the director of the firm who will be in charge of the decisions, operations and business direction of the company. If a director is appointed separately, he/she cannot make all decisions, therefore a general meeting has to be organized from time to time.

Choosing the name for your LDA in Portugal

The name of the private limited liability company is registered with the National Registry of Companies in Portugal. At the time you choose the name of your business, it is recommended to make a name verification in this sense and to propose three names. As a mandatory condition, the chosen and approved name must contain “Sociedad por Quotas” at the end of it or simply Lda. It is good to know that the authorities accept the name of the business in any language as long as it respects the above-mentioned requirement.

The registered office of your LDA

All LDAs in Portugal must have a registered office address in order to receive the company’s tax form, bills, and many more. The accounting records of your firm will be kept at the registered and declared business office in Portugal.

How can an LDA be verified in Portugal?

Auditing is not compulsory for a Portuguese LDA. It is, however, recommended to have a supervisory board for the private limited liability company in Portugal if the total balance sheet exceeds EUR 1,5 million in two consecutive years, if the net sales exceed EUR 3 million or if the number of employees is higher than 50.

Are there other requirements for an LDA in Portugal?

The name of a private limited liability company in Portugal must contain the word limitada or at least the letters LDA. Foreign investors can appoint a legal representative through power of attorney in order to deal with the company registration in Portugal.

The benefits of LDAs in Portugal

Private limited liability companies in Portugal address to both foreign and local entrepreneurs wanting to operate on the market with the help of a simple form of business. The incorporation process of an LDA in Portugal is less restrictive and has fewer formalities. Moreover, the shares in an LDA can be 100% owned by a foreigner, meaning that there is no need for a local investor to create the business. It is good to know that there is no need for audits if the company is small or medium. Requiring only one shareholder for creating an LDA in Portugal is another reason why investors from overseas decide on such a business structure, and more than that, the shareholder can be the director of the firm. Portugal is among the European countries that offer the possibility of creating a company with low capital, in this case, EUR 5,000 for an LDA.

The double taxation treaties signed by Portugal with countries worldwide protect foreign investors from paying the taxes twice on incomes and offer a series of tax advantages. LDAs are the most popular business structures in Portugal and on top of the list of investors who are interested in complete control in their company, an easy incorporation, an attractive minimum share capital and the option of collaborating in terms of business with companies worldwide in a reliable and easy manner. Understanding better the conditions for opening an LDA in Portugal can help foreigners commence the activities in this country within a few days, therefore, you may address your inquiries to our team of consultants.

For more details on the characteristics of an LDA, our Portuguese company formation specialists remain at your service. Please feel free to contact us for a personalized consultancy.

A virtual office in Lisbon can be the proper choice for your newly-registered business in Portugal for many reasons, among which, the low expenses compared to a traditional office. Our team of company formation agents in Portugal can offer registration services for local and foreign investors and can provide you with complete information about the virtual office packages which are at your disposal at any time. Also, we can manage the registration process for your company in Portugal.

What does a virtual office package comprise?

The virtual office package offered by CompanyFormationPortugal.com contains the following services:

• • a notable business address in Lisbon for a trustworthy and risk-free base for corresponding with customers worldwide;
• • a registered office necessary for opening a company in Portugal;
• • mail collection and forwarding - mail is collected, the packages are signed for and sent to you, in accordance with your directions either by mail or fax;
• • incoming and outgoing faxes – you can benefit from a local fax number and we will collect and send the faxes to you;
• • a local phone number in Lisbon, Portugal – we can provide you a local phone number and offer it to all your contacts and future clients;
• • voice mailbox services - all of your voice messages will be forwarded to you by email, on request.

Who needs a virtual office in Portugal?

Any foreign entrepreneur who wants to introduce his/her operations and verify the market before that can solicit virtual office services in Portugal. This is a suitable option for small entrepreneurs or for persons who want to act as sole traders on the Portuguese market. We can provide you with a prestigious business office in Lisbon or in any major city in Portugal. Here is an infographic that explains more about the virtual office in Portugal:

Do I have a virtual assistant?

Yes, virtual office services come with the support of a virtual assistant who will handle the activities of your firm (calls, faxes, emails, etc.) We mention that our company incorporation specialists in Portugal can act on behalf of your company and more than that, they can provide you with complete information about the virtual office packages in Portugal.

Extra services comprised by a virtual office package 

• • dedicated fax service with your own private number, on request;
• • call redirecting - we can offer specialized technology which will enable the call redirection to your favorite phone number;
• • collection of bank statements, in accordance with your needs or request;
• • extra usage of the conference room for future meetings with your collaborators or clients.

Why should I buy a virtual office package in Portugal?

Many young entrepreneurs deciding on business in Portugal are interested in acquiring a virtual office package, especially if a specific budget is involved as minimal costs compared to the ones of a traditional office. A virtual office package may address the type of businessmen who would rather make a market verification and analysis before implementing the activities they want to develop in Portugal. It is recommended to ask for information about the virtual office services you can receive in Portugal and then decide on the direction of your business before anything else. Feel free to discuss such aspects to our team of consultants and solicit broad details in this matter.

Who can purchase virtual office services in Portugal?

There are no restrictions in this sense, meaning that anyone looking for a business start in Portugal may firstly ask for virtual office services. Both domestic and foreign entrepreneurs are invited to ask about virtual office services in Portugal and have an idea about the business field they want to activate. It is important to analyze the sector of interest before going on the market and establish a traditional office. It is good to know that there are many young entrepreneurs who would rather avoid for the moment opening a company with a traditional office and instead, asking for a virtual office package that comes with a series of advantages. Are you looking for a fast start on the business market in Portugal and you need help? Details about the company formation in Portugal and the business regulations you need to understand can be provided by our team of company incorporation specialists in Portugal. We are at your disposal with assistance in opening a company in Portugal, and we can also provide you with accounting services on request.

Are there any extra services for my business?

Yes, you can solicit bank collection statements and tell us what to do further in this matter. With the help of top technology in telecommunication, our virtual office packages comprise dedicated fax and telephone services in accordance with your requests. If you are interested for the first time in the business field in Portugal, it is recommended to direct your attention to virtual office packages and see if they are helpful in your case. Let our team of consultants provide you complete information in this sense and help you choose the proper option for your future business in Portugal.

FAQ about virtual office services in Portugal

1. Do I receive a business address?

Yes, a prestigious business address in Lisbon or in any important city in Portugal is part of the virtual office packages.

2. Can I receive a local phone number?

Yes, you will receive a local phone number connected to your business in Portugal. Furthermore, if you have a special request, you can also receive a private local number, but please talk to our team for more details in this matter.

3.  Do I need a virtual assistant?

Yes, taking care of the daily activities of your business requires a virtual assistant. He/she will be in charge of phone and fax services, mail forwarding, voice mailbox and many more. A virtual office package has a series of advantages, therefore, do not hesitate to solicit extra details in this sense.

4. Who can purchase virtual office services in Portugal?

Anyone interested in establishing the business presence in Portugal without the interest of opening a traditional office can solicit and purchase virtual office packages in Portugal. The good news is that there are no particular formalities at the time you want to purchase virtual office packages in Portugal.

5. Do I get a professional secretary?

Yes, you may ask for professional secretary services and other support teams to take care of the daily tasks among other things.

6. The collection of bank statements – do I get such services?

Yes, the collection of bank statements is part of the virtual office services you can purchase in Portugal.

7.  Do I receive office facilities?

Yes, our virtual office packages comprise extra usage of meeting rooms and other office facilities on request. Our team is at your service if you would like more details in this matter.

8. Are virtual office services expensive?

Compared to the costs of traditional offices, the virtual office packages in Portugal are at a fraction of costs, however, you should address your inquiries to our team and ask for a personalized offer.

9. Do I need to pay rent for virtual office packages?

No, there is no rent payments involved in a virtual office package you can purchase in Portugal.

10. Why should I buy virtual office services in Portugal?

If you do not want to open a traditional office for your business, and instead want to test the market, it is recommended to buy virtual office services in Portugal.

We invite you to contact our company formation representatives in Portugal for personalized services and complete information about the virtual office services In Portugal.

Subsidiaries opened in Portugal are forms of businesses which can be established by foreign companies who want to have limited liability in the company’s actions. A subsidiary registered in Portugal is considered a legal entity and can hire personnel and conclude contracts without the approval of the foreign company. The main difference between a local company and a Portuguese subsidiary is that the capital of the last one is owned partially or entirely by the foreign company. Assistance in opening a subsidiary in Portugal can be entirely provided by our company formation specialists in Portugal at any time.

What is the registration process of a company in Portugal?

A foreign company can easily open subsidiaries in Portugal, mentioning the fact that these have the same rights and obligations as the local companies in Portugal. Below is information about the main requirements for establishing a subsidiary in this country:

1. A declaration stating that the Portuguese company intends to open subsidiaries is requested by the authorities.
2. Subsidiaries formed in Portugal can be registered as limited liability companies, private or public.
3. The private limited liability companies (sociedade por quotas) are forms of business adopted especially by small and medium-sized companies in Portugal. 
4. At least two members must set up this type of business with a minimum share capital of EUR 5,000, divided into non-transferable shares. 

It is important to know that the shares cannot be registered at the stock market and the liability of the members is limited by their contribution to the capital.

Incorporating a public LLC in Portugal

The public limited liability company in Portugal (sociedade anónima) is a form of business adopted especially by large corporations for which at least EUR 50,000 as an initial contribution and a minimum number of five shareholders are mandatory requirements in order to be incorporated. Just like in the case of the private limited liability companies in Portugal, the liability of the founders is limited to the amount of their contribution, mentioning that the shares can be registered at the stock market with freely transferable status.

Requirements for registering a company in Portugal

The registration of the Portuguese subsidiaries in the Commercial Registry is compulsory. A subsidiary established in Portugal must have a unique name, therefore, it is necessary to verify the availability of the wanted name. If the name is available, a reservation can be made by making an application in this sense. The next step refers to the registration of the Articles of Association, the foundation deeds and the decision of opening a subsidiary with the local authorities, which will grant the registration for taxes, VAT and will release the certificate of incorporation. If all the documents are properly submitted with the Company Registry in Portugal, the process of incorporation might not take longer than one day.

The following step refers to the registration with the Social Security Regional Center and a notification to the Labor Office. It is important to have the employees registered at a private insurer for the workmen’s accident compensation insurance. In the end, the entire registration process of a subsidiary in Portugal will take approximately five working days.

Who can set up subsidiaries in Portugal?

International companies interested in having a business presence in the Iberic Peninsula and particularly in Portugal can choose the subsidiary as the proper business structure for future operations. Subsidiaries are 100% independent and can have additional activities too, separate from the ones established by the parent company in the foreign country

Is it necessary to have an appointed representative for a subsidiary in Portugal?

Yes, the foreign company and its owners must appoint a representative for the future subsidiary in Portugal, mentioning that a power of attorney is needed. To simplify and speed up the registration process without having to travel to Portugal, you can appoint one of our advisors with a POA in order to represent your company and interests in Portugal.

A bank account for a subsidiary in Portugal

Each company formed in Portugal cannot commence the activities without a local bank account. A provisionary bank account can be opened for depositing the minimum share capital of the company, and eventually can transform it into a permanent one, connected to all the financial transactions of the firm. The banking system in Portugal consists of local and foreign banks and other financial institutions which can be chosen for subsidiaries in Portugal. If you need assistance for opening a bank account for your subsidiary in Portugal, we suggest you address to our team of company incorporation agents in Portugal and solicit assistance and support.

Accounting requirements for subsidiaries in Portugal

From the start, one should know that the International Financial and Reporting Standards (IFRS) apply to any kind of company in Portugal, alongside the national legislation. In matters of accounting reports, the company financial statements consist of a balance sheet, the profit and loss account plus the annual financial report. The certification and auditing of companies in Portugal are normally conducted by a statutory auditor, whose actions are overseen by several bodies and authorities in the country. All the declarations and accounts must be submitted through IES or the Simplified Business Information system in Portugal.

As an additional fact, it is good to know that many subsidiaries in Portugal have outsourced accounting services instead of an entire department established in the company. If you are interested in complete accounting services for your subsidiary in Portugal, you may get in touch with our team of advisors and ask for support in this direction.

Differences between branches and subsidiaries in Portugal

The level of independence is crucial when deciding whether to choose a branch or a subsidiary in Portugal. This is the main difference between the two entities, highlighting the fact that subsidiaries are separate legal entities which can run freely from the parent company, even if the same operations are established. In the case of branches, things are quite the opposite, meaning that the foreign company is entirely liable for the debts and liabilities of the branch established in Portugal. When it comes to taxation, subsidiaries have a different status, referring to the fact that the worldwide profits will be levied compared to branches for which only the incomes derived in Portugal will be levied. Below we have gathered information and statistics that might be in the best interest of foreigners wanting to start a business in Portugal:

• • the total FDI flow registered in Portugal last year was around $ 4.895 million;
• • the “Startup Visa Programme” addresses to foreign investors wanting to commence new projects and companies in Portugal;
• • minimum investments of EUR 350,000 can be made by foreign entrepreneurs interested in gaining the Portuguese Golden Visa;
• • most foreign investments have been directed to the financial and insurance sector in Portugal, in a share of 27% rate.
• • The Netherlands is the main foreign investor in Portugal.

Please feel free to contact our specialists in company formation in Portugal for more details regarding subsidiaries in this country. 

Subsidiaries opened in Portugal are forms of businesses which can be established by foreign companies who want to have limited liability in the company’s actions. A subsidiary registered in Portugal is considered a legal entity and can hire personnel and conclude contracts without the approval of the foreign company. The main difference between a local company and a Portuguese subsidiary is that the capital of the last one is owned partially or entirely by the foreign company. Assistance in opening a subsidiary in Portugal can be entirely provided by our company formation specialists in Portugal at any time.

What is the registration process of a company in Portugal?

A foreign company can easily open subsidiaries in Portugal, mentioning the fact that these have the same rights and obligations as the local companies in Portugal. Below is information about the main requirements for establishing a subsidiary in this country:

1. A declaration stating that the Portuguese company intends to open subsidiaries is requested by the authorities.
2. Subsidiaries formed in Portugal can be registered as limited liability companies, private or public.
3. The private limited liability companies (sociedade por quotas) are forms of business adopted especially by small and medium-sized companies in Portugal. 
4. At least two members must set up this type of business with a minimum share capital of EUR 5,000, divided into non-transferable shares. 

It is important to know that the shares cannot be registered at the stock market and the liability of the members is limited by their contribution to the capital.

Incorporating a public LLC in Portugal

The public limited liability company in Portugal (sociedade anónima) is a form of business adopted especially by large corporations for which at least EUR 50,000 as an initial contribution and a minimum number of five shareholders are mandatory requirements in order to be incorporated. Just like in the case of the private limited liability companies in Portugal, the liability of the founders is limited to the amount of their contribution, mentioning that the shares can be registered at the stock market with freely transferable status.

Requirements for registering a company in Portugal

The registration of the Portuguese subsidiaries in the Commercial Registry is compulsory. A subsidiary established in Portugal must have a unique name, therefore, it is necessary to verify the availability of the wanted name. If the name is available, a reservation can be made by making an application in this sense. The next step refers to the registration of the Articles of Association, the foundation deeds and the decision of opening a subsidiary with the local authorities, which will grant the registration for taxes, VAT and will release the certificate of incorporation. If all the documents are properly submitted with the Company Registry in Portugal, the process of incorporation might not take longer than one day.

The following step refers to the registration with the Social Security Regional Center and a notification to the Labor Office. It is important to have the employees registered at a private insurer for the workmen’s accident compensation insurance. In the end, the entire registration process of a subsidiary in Portugal will take approximately five working days.

Who can set up subsidiaries in Portugal?

International companies interested in having a business presence in the Iberic Peninsula and particularly in Portugal can choose the subsidiary as the proper business structure for future operations. Subsidiaries are 100% independent and can have additional activities too, separate from the ones established by the parent company in the foreign country.

Is it necessary to have an appointed representative for a subsidiary in Portugal?

Yes, the foreign company and its owners must appoint a representative for the future subsidiary in Portugal, mentioning that a power of attorney is needed. To simplify and speed up the registration process without having to travel to Portugal, you can appoint one of our advisors with a POA in order to represent your company and interests in Portugal.

A bank account for a subsidiary in Portugal

Each company formed in Portugal cannot commence the activities without a local bank account. A provisionary bank account can be opened for depositing the minimum share capital of the company, and eventually can transform it into a permanent one, connected to all the financial transactions of the firm. The banking system in Portugal consists of local and foreign banks and other financial institutions which can be chosen for subsidiaries in Portugal. If you need assistance for opening a bank account for your subsidiary in Portugal, we suggest you address to our team of company incorporation agents in Portugal and solicit assistance and support.

Accounting requirements for subsidiaries in Portugal

From the start, one should know that the International Financial and Reporting Standards (IFRS) apply to any kind of company in Portugal, alongside the national legislation. In matters of accounting reports, the company financial statements consist of a balance sheet, the profit and loss account plus the annual financial report. The certification and auditing of companies in Portugal are normally conducted by a statutory auditor, whose actions are overseen by several bodies and authorities in the country. All the declarations and accounts must be submitted through IES or the Simplified Business Information system in Portugal.

As an additional fact, it is good to know that many subsidiaries in Portugal have outsourced accounting services instead of an entire department established in the company. If you are interested in complete accounting services for your subsidiary in Portugal, you may get in touch with our team of advisors and ask for support in this direction.

Differences between branches and subsidiaries in Portugal

The level of independence is crucial when deciding whether to choose a branch or a subsidiary in Portugal. This is the main difference between the two entities, highlighting the fact that subsidiaries are separate legal entities which can run freely from the parent company, even if the same operations are established. In the case of branches, things are quite the opposite, meaning that the foreign company is entirely liable for the debts and liabilities of the branch established in Portugal. When it comes to taxation, subsidiaries have a different status, referring to the fact that the worldwide profits will be levied compared to branches for which only the incomes derived in Portugal will be levied. Below we have gathered information and statistics that might be in the best interest of foreigners wanting to start a business in Portugal:

•  the total FDI flow registered in Portugal last year was around $ 4.895 million;
•  the “Startup Visa Programme” addresses to foreign investors wanting to commence new projects and companies in Portugal;
•  minimum investments of EUR 350,000 can be made by foreign entrepreneurs interested in gaining the Portuguese Golden Visa;
•  most foreign investments have been directed to the financial and insurance sector in Portugal, in a share of 27% rate.
•  The Netherlands is the main foreign investor in Portugal.

A shelf company is an enterprise which is already registered and functioning in Portugal. The acquisition of such a company is a very popular option that many foreign investors prefer thanks to the many advantages it presents. If you plan to set up a company in Portugal more efficiently, you might want to consider this option. Our team of company formation agents in Portugal can provide comprehensive information about the shelf companies you can purchase in Portugal.

Why choose to buy a shelf company in Portugal?

The main advantage in the acquisition of a shelf company is the fact that you can immediately start your business in Portugal, without the regular waiting for the approvals of Portuguese authorities. Another main advantage is the fact that a shelf company which already has a good business record can increase your credibility on the market that you intend to explore in Portugal. If you want your company formation in Portugal to be safe, you should verify whether the shelf company you intend to buy has a clean record and all the legal obligations attained.  

An aged shelf company can also be a true advantage when you need to sign contracts with other companies that limit eligibility to companies with history. A mature shelf company will increase your credibility when you enter bidding contracts. When buying a shelf company, it usually comes with an already functional bank account. This will moreover help you to further beneficiate from better credit options for your business, thus optimizing your actions in the financial sector.

What does it assume to incorporate a shelf company in Portugal?

What you must decide in the first place is which company to buy, and for this, you must perform an attentive check of the existing options. This is not only a time consuming, but also a risky step on which your company formation in Portugal depends in great measure.

After making a selection of potential shelf companies which might correspond to your specific demands, you can get in contact with one of our specialists in company formation in order to help you establish the terms for the acquisition. Next, it is advisable to check the history of the shelf company, gather the documentation for the transfer of ownership, check the business code and amend it if it is necessary. Our experts can help you determine whether the shelf company is a secure investment. Here is an infographic that explains how you can buy a shelf company in Portugal:

Who can buy a shelf company in Portugal?

Foreign or local entrepreneurs can buy a ready-made company if they are interested in starting a business rapidly without having to consider the registration formalities with the local authorities. However, the business can activate as soon as the ownership is transferred, and the entrepreneur signs the documents in this sense. There is no need to wait for incorporation bureaucracies and you can start the business in a fast manner right after you have received the approval in this sense. Please do not hesitate to talk to our advisors and find out more about the advantages of a shelf company in Portugal.

How can I buy a shelf company in Portugal?

The acquisition of a shelf company in Portugal is quite simple, and in this matter, our company formation agents in Portugal can provide the needed support:

• • you do not need to travel to Portugal to buy a ready-made company, as our consultants can make the necessary arrangements in this sense;
• • copies of your identification documents which need to be notarized are sufficient for the acquisition of a shelf company;
• • the proforma invoice for the ready-made company provided by our team needs to be paid;
• • the next step is signing the company’s documents before the ownership transfer is made.

Our company formation representatives in Portugal can provide you information about the available ready-made companies on the market and about the ways in which you can settle the arrangements for the acquisition of such a company.

Are there any risks when purchasing a ready-made company?

No, there are no risks to consider when buying a shelf company in Portugal because such company has no activities, and therefore no debts. This kind of company is already registered, following the steps of incorporation just like any other company, with respect to the Company Act in Portugal. However, it is suggested but not mandatory to ask for company due diligence and complete verification of a ready-made company. A company due diligence report may reveal if there are any particular problems with a shelf company, like previous bad management or any kind of debts. Even though it is not the case, you can solicit company due diligence and make sure that your future company is in the right order. Ask our advisors for support and information in this matter.

Reasons for buying a ready-made company in Portugal

Portugal is extremely appealing to international investors, therefore, a fast entrance on the market is in most cases the intention of many entrepreneurs. A ready-made company can be the proper solution for those wanting to skip the registration procedures and get ready for business as soon as the documents have been signed and the ownership transferred. It is important to have a business plan before a shelf company is purchased, in order to start the operations rapidly. Not having to wait for specific incorporation formalities is often the important benefit considered by investors from overseas looking for business in this part of Europe.

Differences between traditional companies and shelf companie

The economic stability, the strategic geolocation and the ease of doing business are considered in a large amount by foreign entrepreneurs who would like to establish their operations and develop their portfolios in the Iberian Peninsula. In this direction, an entrepreneur can choose between purchasing a ready-made company and creating a new one from scratch. The main difference between these two is that the first one is already registered and ready to be transferred at any time. As for the traditional company registration in Portugal, this involves a series of stages like opening a bank account for the minimum share capital, register for tax purposes, applying for licenses and permits, creating the company seal, register for social contributions and many more. In the case of establishing branches or subsidiaries, it is good to know that the registration process might take time compared to the acquisition of a shelf company and that because there are specific requirements in matters of documents. This is why purchasing a ready-made company can suit best the needs of a foreign entrepreneur who is looking for a fast start on the Portuguese market. We remind that a shelf company is already registered with the entitled authorities, even for tax purposes, in order for the new owner to worry less about the incorporation of business and concentrate more on future investments in the firm. As soon as you decided on the direction of the business, you may proceed with the formalities of buying a shelf company in Portugal. 

Portugal is an attractive country in which businesspersons can open holding companies if they understand and respect particular conditions, from which we remind that it is necessary to obtain specific licenses in the Free Trade Zone of Madeira to obtains numerous advantages. A holding company in Portugal is an important business form which possesses shares in other entities which are free to operate according to their plans, with no other interventions. If you want to set up a holding company in Portugal, we invite you to solicit guidelines and complete information from our company formation specialists in Portugal.

Details about holding companies in Portugal

When registering a holding company in Portugal, one should know that the dividend income obtained by this type of entity from the subsidiary can be exempt from the corporate tax rate in the holding company's authority. Besides that, the following aspects must be met when opening a holding company in Portugal:

• •     the profits or the capital gains of a holding company in Portugal are subject to a low tax rate;
• •    if the holding company pays incoming or outgoing dividends to the parent company from overseas, the withholding tax rate will be reduced or eliminated.

Our company formation agents in Portugal are here to offer comprehensive information about how to set up a holding company in the country and about the taxes imposed on such business. The company registration procedure in Portugal is an effortless process which can be entirely guided by our team of advisors.

What is the purpose of a holding company in Portugal?

The management of the shareholdings in other companies that carry economic activities in Portugal is the sole purpose of holding companies established in this country. Having at least a 10% share in a company offers lots of advantages among which, the voting right. More than that, having a holding company can allow you to provide technical management, if a written agreement in this sense is made, as it is the case of subsidiaries. For more details about these aspects and about how to establish holding companies in Portugal, you can talk to one of our company formation representatives in Portugal.

Audits for holding companies in Portugal

A certified auditor needs to be appointed by holding companies in Portugal. These specialists must report to the General Tax Inspectorate in Portugal and provide the list of all stockholdings consisting of financial investments, as the law obliges. Such a report must be made on a yearly basis, and support in this matter can be obtained from one of our representatives in Portugal.

Taxation of holding companies in Portugal

Having a holding company in Portugal means taking advantage of an appealing tax regime where there is no capital gains tax and no corporate tax. The deduction on interests apply to holding companies in Portugal, however, the withholding tax is not eliminated, except the cases of outgoing or incoming dividends to the parent company. For a better understanding of the taxation of holding companies in Portugal, please address your inquiries to one of our company formation agents in Portugal.

What are the benefits of holding companies in Portugal?

Holding companies present a series of advantages which can raise the interest of investors who want control in specific companies in Portugal. Here are a few examples of holding company advantages in Portugal:

1. Holding companies are protected by the applicable EU directives.
2. The double taxation treaties signed by Portugal with countries worldwide provide a series of tax exemptions for holding companies.
3. Centralized corporate control is related to holding companies.
4. A holding company provides greater protection against all sorts of risks (operational and financial).
5. The protection of assets (equipment, intellectual property, etc.) can be offered by a holding company.
6. The amount of taxes can be reduced when owning a holding company in Portugal.
7. The management of a holding company in Portugal is controlled by the managers of this company.
8. The continuity of the business can be ensured by the directors of a holding company in Portugal.
9. Tax minimization methods can be successfully implemented in a holding company.
10. Investing in large projects can be made with the help of holding companies in Portugal.

The structure of a holding company in Portugal is not complex, however, for registering such a business in Portugal, it is recommended to solicit the support of our team of company formation specialists in Portugal.

Making investments in Portugal – key factors

Portugal has an excellent geographic location with important business connections worldwide, by air, sea, and land. International investors can enjoy numerous advantages when it comes to owning a business in Portugal. Among these, the mention that entrepreneurs can rely on the brilliant, skilled and multilingual workforce available on the market. Also, having access to complete technology for their companies allows international entrepreneurs to decide quite fast in Portugal for a business point of view. Another great advantage for entrepreneurs from abroad refers to the ease of registering a business in Portugal. There are no complex formalities in this matter, and that because the incorporation process of a company has been extensively simplified, including for holding companies in Portugal. The following facts, data, and numbers ca highlight a few aspects of the business direction and economy in Portugal:

• • the 2020 Doing Business report ranks Portugal 39th out of 190 worldwide economies, as stated by the World Bank;
• • international investors can obtain Portuguese citizenship if they make investments of at least EUR 250,000 in existing companies in this country;
• • 27% of the total FDI stock for 2018 in Portugal have been directed to the financial services sector;
• • Spain, the UK, Luxembourg, and the Netherlands are the main investors in Portugal;
• • around USD 135,777 million was the total FDI stock for Portugal in 2018.

Why should you open a holding company in Portugal?

If you want to manage the stocks in another enterprise as a secondary method of supporting the economic activities, you should register a holding company in Portugal. Under a signed arrangement which runs the terms of compensation, a holding company in Portugal can offer methodological management services to all of its subsidiaries. One should know that a holding company in Portugal can be set up as a private limited company or as a public one, the registration process being 90% about the same with the one for any type of company which is subject to a legal framework.

The startup ecosystem in Portugal aligns with important and appreciated business hubs from abroad and allows small or young entrepreneurs to access funds in a fast manner. The Portuguese government offers support through varied programs and incentives, letting businesspersons enter quite fast on the market. Those interested in opening a startup in Portugal can solicit assistance and guidance from our team of company formation agents in Portugal. We are here to help both domestic and foreign entrepreneurs start a company in Portugal, by handling all the formalities.

What is the proper business structure for my startup in Portugal?

LDA or the limited liability company is the most popular business structure in Portugal and the choice of numerous entrepreneurs looking for a fast start on the market. The incorporation of an LLC is quite simple, with complete support and guidance offered by one of our specialists. Here are the main steps for opening a business in Portugal:

1. Prepare the Articles of Association with information about the owners, the activities, general rules, business address, etc.
2. Make sure the business name is available – a name verification can be made with the Portuguese Trade Register.
3. Apply for special licenses and permits, if the activities require so.
4. The registration for tax purposes is required.
5. If you hire employees, make sure you pay the social contributions.

The above-mentioned steps are part of the incorporation process of a startup in Portugal, mentioning that all the bureaucracies and procedures can be properly handled by one of our specialists in company formation in Portugal. Here is an infographic that tells you more about startups in Portugal:

The startup ecosystem in Portugal aligns with important and appreciated business hubs from abroad and allows small or young entrepreneurs to access funds in a fast manner. The Portuguese government offers support through varied programs and incentives, letting businesspersons enter quite fast on the market. Those interested in opening a startup in Portugal can solicit assistance and guidance from our team of company formation agents in Portugal. We are here to help both domestic and foreign entrepreneurs start a company in Portugal, by handling all the formalities.

What is the proper business structure for my startup in Portugal?

LDA or the limited liability company is the most popular business structure in Portugal and the choice of numerous entrepreneurs looking for a fast start on the market. The incorporation of an LLC is quite simple, with complete support and guidance offered by one of our specialists. Here are the main steps for opening a business in Portugal:

1. Prepare the Articles of Association with information about the owners, the activities, general rules, business address, etc.
2. Make sure the business name is available – a name verification can be made with the Portuguese Trade Register.
3. Apply for special licenses and permits, if the activities require so.
4. The registration for tax purposes is required.
5. If you hire employees, make sure you pay the social contributions.

What kind of business sectors can I choose for my startup in Portugal?

Startups in Portugal can be established in most of the business sectors with growth potential as long as there are no restrictions and if all the regulations are respected. The innovative and the tech sectors are quite fruitful in Portugal, alongside design, manufacturing, tourism, and agriculture. You can open a startup in Portugal in a few simple steps, like choosing the business field, prepare a business plan, open an LDA and hire the services of a specialist to continue with the formalities. Our company formation experts in Portugal can help you create a business plan for your startup and can also represent your firm, so you can get in touch with us for extra details.

Can I open a startup as a sole trader in Portugal?

Yes, a sole proprietorship is another proper business form that can be chosen by overseas entrepreneurs who want simple and fast company formation formalities. Such a structure is ideal for small entrepreneurs who want to act as self-employed persons in Portugal. Foreigners will have to obtain the Portuguese residence card, the Social Security Number, and the Tax Number and then start the formalities for registering the sole proprietorship. A solid and structured business plan is recommended for opening a startup in Portugal, a matter where our team of consultants can help.

Do I need a Certificate of Admissibility for my business in Portugal?

Yes, a Certificate of Admissibility is normally issued by the Institute of Registries and Notaries that identifies the Portuguese company name. Such a document can only be granted after a preliminary verification of the business name for your startup in Portugal. 

How fast can I start my business operations in Portugal?

It takes no more than two weeks until your company is ready for business in Portugal. In some cases, if all the formalities are accepted, the activities can start even faster. This is where we recommend support and guidance from one of our company formation representatives in Portugal who can help local and international investors open their businesses in this country. The following facts and figures reveal a few important aspects of the business direction and the economy of Portugal, helping overseas investors create an idea about why they should invest in this country:

1. the total FDI stock registered by Portugal in 2018 was of around USD 135,8 billion;
2. around 6,100 new jobs were created in 2018, thanks to all sorts of FDI projects;
3. non-EU citizens can obtain Portuguese citizenship in 6 years if they make investments of at least EUR 350,000;
4. Portugal ranks 39th out of 190 worldwide economies, according to the 2020 Doing Business report issued by the World Bank.

If you are interested in more details about how to open a startup in Portugal, we kindly invite you to contact our team of company formation agents in Portugal.

Having a business in Portugal means, besides profits, taking advantage of a stable business climate and the possibility of developing the activities in a reliable manner. International investors can direct the attention to establishing branches or subsidiaries of their firms or can introduce other operations too, depending on their business needs. Opening a shop in Portugal can be a great business idea for small and medium entrepreneurs in this country. Support in company registration can be offered by one of our company formation agents in Portugal.

How to open a shop in Portugal

The first thing to do when starting a business in Portugal is to decide on the structure under which you can operate on the market. The limited liability company or the LDA as it is known in Portugal can be an excellent option for foreign entrepreneurs in this country and that because is a simplified business form and suited for most of the activities. Here are a few steps and details to consider for opening an LDA in Portugal:

1. The registration of an LDA starts with the Portuguese Trade Register or the Commercial Registry in Portugal.
2. At least one shareholder can open an LDA in Portugal.
3. EUR 5,000 is the minimum share capital for opening an LDA in Portugal.
4. You need to appoint a company representative with a residency in Portugal. One of our agents can represent your firm.
5. The Articles of Association are the main documents of the firm, with information about the owners, the activities, general rules and many more.
6. The registration for tax purposes and social contributions is compulsory.
7. Once the company seal is obtained, you can start business activities in Portugal.

One of our company formation representatives in Portugal can take care of the formalities involved in opening a business in Portugal. They can handle the incorporation with the entitled authorities and take care of the needed documents, special licenses, and permits, plus other requirements.

A name verification before registration

When the company formation in Portugal begins, it is required to make a name verification with the Company Registry and check if your business name for your shop is valid. This is the first step to consider when deciding on opening a company in Portugal and one of our specialists can help you in this matter.

Types of shops you can open in Portugal

The business market in Portugal is diverse and foreign entrepreneurs have varied opportunities in this country. Tobacco shops, supermarkets, small stores to serve communities with daily products, bakeries, grocery shops, coffee shops, newspaper shops, perfumeries and cosmetics, jewelry shops, wine shops and many more can be established in Portugal. It is important to verify all the business aspects of the shop you wish to open and obtain the necessary licenses and permits if any. Our company formation agents can give full support for those interested in opening a shop in Portugal and without a clear picture of the business formation in Portugal. We are at your disposal with guidance and assistance for starting a business in Portugal, regardless of the activities you wish to implement.

Making investments in Portugal

Portugal is open to investments of any kind to entrepreneurs looking to thrive in this country and generate profits in varied sectors. Subsidiaries and branches to community shops, Portugal is home to a vast number of businesses. The legislation related to foreign investments is quite permissive in Portugal and the authorities provide a series of incentives and encouragements to sustain the businesses in this country. Among the benefits of foreign investors in Portugal, we mention the skilled and multilingual workforce available on the market, the appealing taxation regime, and the possibility of starting a business with no complicated formalities, and therefore, fast incorporation. The real estate sector, the agriculture, manufacturing, and the FMCG sector are quite thriving in Portugal and excellent choices for international investors. Here are some numbers, facts, and statistics about the business direction in Portugal:

• • Around EUR 135,777 million was the total FDI stock for Portugal in 2018;
• • According to the 2020 Doing Business report offered by the World Bank, Portugal ranks 39th out of 190 economies in the world;
• • Entrepreneurs who invest at least EUR 250,000 in existing companies in Portugal can obtain citizenship;
• • The “Startup Visa Programme” address to foreign investors wanting to open companies in Portugal.

If you would like to know more about how to open a shop in Portugal, feel free to contact our company formation agents in Portugal.

The Trust Law in Portugal mentions that a trust is the type of agreement that can be established by two or more settlers who can legally transfer stocks, properties, bonds or loans to trustees. Trust companies are seen as legal entities that act as fiduciaries or agents on behalf of other companies or natural persons in Portugal and that are in charge of varied responsibilities we will shortly present. Our company formation agents in Portugal can give more details about trust companies in Portugal and the ways in which they can activate.

How does a trust company work in Portugal?

A trust company in Portugal has the main purpose, of properly administrate and manage the assets, shares, and bonds of a company or person living in this country. Such a company practically has a legal obligation of taking care of the assets in the name of the owners, under a written legal contract. Below is important information about trust companies in Portugal:

1. Assets involved in a trust can be managed with the purpose of investments and future profits.
2. Trustees cannot use the assets on their personal behalf.
3. Stock transfers can be made with the help of a trust company in Portugal.
4. Trust companies are involved in wealth management and can act as fiduciaries on the market.

Trust companies can be established as private LDAs and therefore have a legal status before running the activities in Portugal. If you would like to open a limited liability company in Portugal, we suggest you talk to one of our company formation representatives in Portugal and ask for assistance.

Who needs fiduciary services in Portugal?

Fiduciary services in Portugal are normally directed to Portuguese companies looking for portfolio development, wealth management, and equity investments. The management of company assets can enter the attention of one of our specialists who can provide fiduciary services under a legal agreement and the promise that he/she will work in the best interest of your personal purposes and intentions. Fiduciary services in Portugal can be a combination of tax plans and strategies, inheritance tax planning, complete retirement planning, a wide range of corporate solutions for future business investments, portfolio diversification, business risk reduction, and management, plus complete legal advice in matters of company finances. 

Who can open trust companies in Portugal?

Trust companies in Portugal can be established by foreign or domestic investors with a clear criminal record and no financial crimes involved. The benefits of having a trust company in Portugal are huge and among them, the financial ones and the possibility of sustaining the business portfolio in a large percent. One of our company formation agents in Portugal can give immediate support for opening a trust company in Portugal. They can help you start a business in Portugal by handling the formalities involved.

Taxation of trusts in Portugal

The flat tax of 28% rate is applicable on trust distribution, alongside the stamp duty of 10% rate on gifts delivered from a trust, plus the capital gains tax. However, the stamp duty tax can be eliminated if the beneficiary of the trust is related to the settlor who can be a family member. If you would like to know more about the taxation of trusts in Portugal you are more than welcome to address your inquiries to our consultants

Investments in Portugal

Portugal is a top business destination for numerous entrepreneurs worldwide who want to benefit from a great and appealing climate for their activities. The tourism sector is quite prolific and provides a multitude of investment possibilities to foreign investors of any kind. Spain, UK, France, the Netherlands, and Germany are the main investors in Portugal who benefit from simple business formalities, appealing investment incentives and many important encouragements offered by the government. We have gathered facts and information about the investments and economy in Portugal that you might find it useful:

• • around USD 135,777 million represented the total FDI stock in 2018;
• • according to the 2019 Doing Business report provided by the World Bank, Portugal ranks 34th out of 190 worldwide economies;
• • the Golden Visa Programme allows foreigners to obtain Portuguese citizenship if particular investments are made – EUR 250,000 for established companies;
• • most of the foreign investments are directed to the financial and insurance sector in Portugal.

Those interested in opening trust companies in Portugal can get in touch with our company formation agents in Portugal and find out more about the formalities and bureaucracies involved. 

The construction sector in Portugal met different changes in the past decade, particularly at the time the economic crisis affected most of the European countries. Things are now quite the opposite, as many international entrepreneurs decide on setting up construction companies in Portugal and benefit from the huge opportunities offered and in a large percent sustained by the authorities. If you are interested in opening a company in the construction sector in Portugal, you are invited to talk to one of our company formation specialists in Portugal and solicit information and support.

Who can set up a construction business in Portugal?

Any business person who wants to thrive in Portugal’s construction field can decide on a company that can have varied activities. Both local and foreign entrepreneurs have equal rights when it comes to investments, and the authorities make no differences in terms of formalities, licenses and permits. The Planning Permission in Portugal is obtained at a local level, but first of all, companies in the construction sector must have environmental licenses for legally build structures in different cities in Portugal. 

How do I open a company in the construction sector in Portugal?

The formalities for opening a company in Portugal have been significantly simplified in recent years, and business in the construction field can activate under the rules of private limited liability companies or LDAs. Among the requirements for opening an LDA un Portugal, the following are quite important and should be in the attention of overseas entrepreneurs right from the start:

1. At least one shareholder can set up an LDA in Portugal, and a business name verification is needed prior to the company incorporation.
2. EUR 5,000 is the minimum share capital for a private limited liability company which needs to be deposited in a local bank account.
3. There is no obligation of appointing a board of directors, however, it is necessary to have a managing director.
4. The registration for tax matters and social contributions needs to be observed before the company activates on the Portuguese market.
5. Special licenses and permits are needed for opening a company in the construction field in Portugal.

It is recommended to have assistance and support from a team of company formation agents when starting a business in Portugal as a foreign entrepreneur, as the language barrier or specific regulations might represent an impediment. More than that, one of our agents can act as the legal representative of your firm in Portugal, with a power of attorney.

The registration with INCI in Portugal

Another step that needs to be considered at the time the construction company is formed is to register the business with INCI (Instituto da Construçao I do Imobiliario), the Institute for Construction and Real Estate in Portugal. This institute is in charge of varied activities among which, ensuring the sustainability and the competitiveness on the market, making sure that companies in this field act in a fair manner, and combating the illegal competition or unauthorized constructions in the country. This is the body that regulates the construction field in Portugal. Once the approvals from INCI are issued, companies in the construction field can commence the activities.

Short facts about the construction sector in Portugal

The strong economic growth of Portugal is sustained by varied sectors, among which, the construction field is no exception. Many construction companies are involved in different projects related to the basic infrastructure in the country (highways, bridges, motorways, etc.), or civil engineering, sustained in a large percent by the Portuguese government. There are also private companies that developed numerous residential zones and resorts, considering the potential of the tourism in the country. Several programs introduced by the authorities aimed to create residential buildings and renovate the existing ones, mentioning that the legislation is transparent and allows investors set up correct prices on the market. Below we have gathered information and statistics about the construction sector and about the investments in Portugal:

• • EUR 6.7 billion represent priority investments for the country’s infrastructure by the end of 2020;
• • approximately USD 4,895 million represented the FDI flow for Portugal in 2018;
• • Citizenship by Investment is an important programme in Portugal, allowing entrepreneurs to obtain naturalization for minimum investments of at least EUR 350,000;
• • Portugal ranks 34th out of 190 economies worldwide, as stated by the “2019 Doing Business Report”.

Entrepreneurs from abroad who want to set up a construction company in Portugal are invited to contact our company formation agents in Portugal for complete support and information. 

Portugal offers varied business opportunities in most of the sectors, including in the agriculture field where entrepreneurs can benefit from an encouraging business environment, from a proper climate and excellent conditions. There are numerous family farms established in Portugal, and the private limited liability company might represent the ideal structure for this kind or activities. Entire support and assistance are offered by our company formation representatives in Portugal, so feel free to address your requests to our team at any time.

How do I open a company in the agricultural business in Portugal?

The incorporation process of a company in the agriculture sector is not complicated, and persons wanting to activate in the agricultural field can set up a private limited liability company in Portugal, following these conditions:

1. EUR 5,000 is the minimum share capital for opening an LDA in Portugal.
2. A board of directors and a representative need to be appointed for your firm.
3. The name of the business is followed by LDA or “Sociedad por Quotas”.
4. The registration for tax purposes is made after the certificate of incorporation is issued.

And LDA in Portugal offers 100% control in the company, so foreign entrepreneurs do not need to sign an agreement with a local investor for establishing a business. The support of our company formation specialists in Portugal can help business persons skip the registration process, as our consultants can act on your behalf with a power of attorney. 

Can I establish an EIRL in Portugal?

Yes, you can decide on this kind of structure and open an EIRL for your activities in the agricultural sector in Portugal. This is the sole proprietorship in Portugal and the simplest business form available. A sole trader can start the operations in the agriculture sector and consider the features of this kind of business structure, referring to the liabilities in the firm. The registration for tax purposes is mandatory for your sole proprietorship, so make sure to comply with the requirements in this matter. Also, if you need support and guidance for opening a sole proprietorship in Portugal, feel free to get in touch with our company formation agents in Portugal and send us your requests.

Agriculture in Portugal

The authorities in Portugal are aware of the potential of the agriculture sector and the profits generated in this field. There have been numerous investments made in this area, and besides that, the Ministry of Agriculture, Forestry and Rural Development in Portugal sustained a part of the farmers who suffered from fires in 2017 with approximately EUR 38 million which were paid this year. Entrepreneurs from abroad can have Portugal in their attention and choose the agricultural sector for future activities or family farms. Large companies from abroad can place their operations in the agricultural sector, or local investors can have export-oriented agricultural businesses in Portugal. The country has an excellent climate for the production of green vegetables, cereals, olives, mushrooms, fruits and so on. Also, forestry is an essential part of the agriculture field, so there are numerous companies activating in the manufacturing sector (paper, furniture, cork, etc.).

Taxation in Portugal

Portugal is quite appealing from a taxation point of view, and investors from abroad are protected by the double taxation treaties signed with countries worldwide. 21% is the corporate income tax rate in Portugal and 17%, the rate applicable in Madeira. Entrepreneurs in Portugal need to observe the wealth tax of 1% which was introduced in 2017 and which is applicable to property owners summing up more than EUR 1 million. Food products, healthcare services and hotel accommodation are subject to a VAT rate of 6%, however, the general VAT rate is set at 23% in Portugal. If your company established in the agricultural sector in Portugal deals with import activities or farm product sale, you will have to register it for VAT purposes. Here are some details about the taxation in Portugal:

• for annual incomes below EUR 650,000, the VAT report is made every 3 months;
• there is no VAT for an annual turnover of less than EUR 9.976/year;
• property buyers in low tax jurisdictions in Portugal are subject to a real estate transfer tax of 10% rate;
•  the stamp duty of 10% rate is applicable to non-close recipients instead of inheritance tax.

For more details about how you can open a company in the agriculture sector, please feel free to contact our company formation specialists in Portugal. 

A small business in Portugal may commence under the rules of a sole proprietorship, the easiest business structure available. This a preferred business for many reasons, among which small taxes, complete liability for the owner and simple accounting requirements. Our company formation specialists in Portugal are here to provide complete support for entrepreneurs interested in setting up a sole trader in Portugal.

How do I become self-employed in Portugal?

The Portuguese Trade Register is the institution in charge of company incorporation in this country, including sole proprietorships. Just like in the case of any kind of company, the first thing to do is to verify and reserve the business name before preparing the company’s documents. Here are the main steps for setting up a sole proprietorship:

1. The registration for tax purposes, such as VAT and social security.
2. Professional certifications and qualifications recognized in Portugal are needed. 
3. Portuguese qualifications are necessary for accountants, lawyers, etc.
4. The authorities will request copies of the personal identification documents.

What are the taxes for sole traders in Portugal?

The tax regime is quite appealing for foreign traders in Portugal, and this means that there is no corporate income tax involved. The sole proprietorship enters the Simplified Category B Regime, meaning that taxes are applied for EUR 200,000 annual turnover. It is good to know that sole traders in Portugal are subject to social contributions and must pay a 29.6% rate if the profits exceed EUR 2,573/year. We mention that sole proprietorships are considered single entities and therefore, the taxation is made through the personal tax regime established for individuals in Portugal. All the aspects and steps involved in the registration of a sole proprietorship in Portugal can be explained by our company incorporation agents in Portugal. Our team of advisors can help foreign entrepreneurs register a company in Portugal at any time, regardless of the selected business structure.

Who can work as a sole trader in Portugal?

Brokers, accountants, temporary workers, real estate agents, lawyers, alternative medicine practitioners or farmers can be self-employed in Portugal and register their activities as sole traders. Such activities are based on specific rules, and self-employed persons will have to comply with the tax payment regulations and report the profits for the previous business year. 

A correct and realistic business plan, a logo, a name, a long-term strategy and details about the business start-up costs should be the first steps in opening a sole proprietorship in Portugal, whether as a national or as a foreign entrepreneur. Even if the registration procedure is simple, it is best to talk to our company formation representatives in Portugal and solicit assistance and complete guidance.

 Reasons to be self-employed in Portugal

The business opportunities in Portugal are huge and let foreign investors choose what they want in terms of business forms, suitable for their needs. A sole proprietorship is the ideal choice for the type of entrepreneurs wanting to start a business with a fixed budget. This means that they can easily develop without having to pay attention to taxes to pay if the annual turnover is not exceeded. The tax regime is advantageous for sole traders in Portugal, and it is among the reasons why such business form is recommended and chosen. Likewise, being self-employed in Portugal means having fewer worries from a business point of view, especially for attorneys, accountants, real estate agents, translators, web developers, graphic designers who want to activate in this fields. A successful self-employed contractor will have to be aware of the business responsibilities, make a concrete plan, understand the direction of business, including on the internet, and have everything necessary for offering complete services.

A sole proprietorship in Portugal is the proper structure for the type of entrepreneurs who would rather work for themselves, pay fewer taxes and generate profits for their own good. It is though recommended to change the business structure if the sole proprietorship no longer addresses to your needs, and in this case, an LDA represents the next business step in Portugal. Here are some facts about business in Portugal:

• • approximately USD340 billion is the estimated GDP for 2019;
• • EUR 910 is the average salary for employees in Portugal;
• • the economy is sustained by the tourism sector that registers around 20 million visitors each year;
• • USD 62.22 billion represents the export profits for Portugal in 2018.

We kindly invite you to contact our company formation specialists in Portugal and find out complete information about how you can open a sole proprietorship in Portugal, and about the taxation for such structures. If you want to open a company in Portugal, feel free to address to our team. 

One or more shareholders can set up varied business structures in Portugal, like limited liability companies, joint stock companies, limited or general partnerships. The good thing to know is that company stockholders have different responsibilities in the firm, and the Company Act in Portugal comprises information in this sense. If you would like to open a company in Portugal as a foreign shareholder, we invite you to talk to our team of company formation agents in Portugal and find out more about the conditions involved in such process.

How many shareholders can form a LDA in Portugal?

LDA is the limited liability company which can be set up by at least one shareholder and a minimum share capital of EUR 5,000. This is the preferred business structure for small and medium entrepreneurs in Portugal due to its simple form, registration and development. In terms of business management, the shareholders need to appoint the board of managers and also the legal representative of the firm. There are no complex regulations involved in the registration process, however, it is suggested to have a specialized team in company formation in Portugal who can handle the paperwork and other conditions implicated.

What are the responsibilities of shareholders in Portugal?

Owners of Portuguese companies have both rights and responsibilities in the firm. The Company Act in Portugal mentions the following provisions:

1. The shareholders of a Portuguese company need to appoint the representative agent and the board of managers in the firm.
2. The owners need to choose and agree the business name of the company in Portugal.
3. The Articles of Association and the Memorandum of Association are the company’s main documents which need to be signed by the shareholders.
4. The shareholders of a Portuguese company are directly informed by the financial status in the company.

The Portuguese authorities have improved and simplified the registration process of companies in Portugal, letting international investors have a fast entrance on the market. Even so, the support of our company incorporation agents in Portugal is at your service if you would like to skip the registration formalities and go straight to business in a professional manner.

Is a shareholder liable for debts?

Yes, the stockholders of a Portuguese company are liable for company debts as long as they do not surpass the value of the shares involved, or the amount of investments made in the company. The same thing is applicable to shareholders that guarantee a company loan through personal assets. In case the shareholder is also the company director, he or she will be directly liable in the case the company is insolvent but continues trading and doing business. Also, if the stockholders raised funds through illicit methods to pay the creditors, they are fully responsible in such situation. 

The advantages of stockholders in Portugal

The main benefit is the limited liability of shareholders of Portuguese companies, meaning that in the case of company closure, the only assets lost will be the ones registered at the time the company was formed. In the case of investments, stockholders can decide on collaborating with other investors too and have access to more funds. 

Partnerships and sole traders in Portugal – what are the responsibilities?

Sole traders in Portugal are directly involved in the business direction, including liabilities, if any. In case your business is subject to debts, and creditors are asking for money, the personal assets can be involved and claimed. However, it is recommended to have a good business plan in the first place, ask for the support of a business consultant who can provide a good and complete business plan, excellent advice and guidance in terms of finances and business direction. Such a support can be solicited from our team of company incorporation agents in Portugal at any time.

How can I open an LDA in Portugal?

The formalities for opening an LDA in Portugal are mentioned by the Company Law in Portugal, alongside the Commercial Code. Choosing the business name, preparing the Articles of Association, obtaining the necessary licenses and permits, registering for tax matters and applying for company seal are only a few of the business requirements for LDA registration in Portugal. The National Registry of Companies in Portugal is the institution in charge of company formation in Portugal, whether with foreign capital or not.

All the conditions of company registration in Portugal can be completely explained by our company formation specialists in Portugal, so do not hesitate to contact us.

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:

1. Developing and implementing a series of acts to carry out specific activities of one of the companies.
2. Company members can fabricate products and sell them on the market.
3. A consortium can exploit the natural resources in Portugal.
4. 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.

Changing the company structure intervenes when a business expands, and the owners decide this is the best solution. For example, a sole trader can think of converting the business into a limited liability company in Portugal. Changing the company type is the best solution for small businesses in Portugal, and if you would like to know how the procedure is completed, we kindly invite you to get in touch and address your inquiries to our team of company formation specialists in Portugal.

Company types in Portugal

The private limited liability company, or LDA as it is known, can be established in Portugal by foreign investors who need to deposit the minimum share capital of EUR 5,000. At least two shareholders can set up an LDA in Portugal. As for a public limited liability company in Portugal, this can be incorporated under certain conditions among which, the minimum share capital of EUR 50,000 and at least 5 shareholders. Investors can also decide on a limited partnership from a single shareholder or EIRL. The partnership can be formed by at least two members without having to consider the minimum share capital, as such a condition is not imposed. Partnerships in Portugal can be general or limited, depending on the liabilities and obligations in the company.

How can I change an EIRL into a partnership in Portugal?

If you have decided it is time to change the business direction and convert the EIRL into a partnership, the first thing to do is to register the new structure to the Commercial Registry in Portugal. Even though there are simple formalities involved, it is best to observe the following matters in order to have an idea about how you can change the sole proprietorship into a partnership in Portugal:

• • at least two members can form a partnership in Portugal who need to decide on the new business name and make a reservation in this sense;
• • there is no need for a minimum share capital, however, the members need to decide if the partnership is general or limited, in order to set up the liabilities;
• • there are different taxes imposed on partnerships, therefore, it is best to observe the rules in this matter;
• • a partnership can be established once an agreement is settled, comprising information about the activities of the business and the responsibilities of members.

Converting the company type solicits complete attention of the entrepreneurs, and instead of dealing with problems in matters of bureaucracy, we suggest you talk to our experts in company formation in Portugal and ask for comprehensive support.

Changing a sole proprietorship into an LDA

As a sole proprietorship, you represent the business in Portugal. In the case you wish to change the structure into a limited liability company, you should know that you will be the stockholder while the business will be a separate legal entity. This is often the reason why sole proprietors in Portugal decide at a certain point to change the business structure and to continue with the developments. The conversion from an EIRL to an LDA is subject to a new registration with the entitled authorities, meaning that the owners will have to consider the minimum share capital, a new name (or keep the old one), and other tax liabilities. Also, an LDA will have to appoint the company secretary, the board of managers, submit the annual financial statements and hire an accounting firm to properly deal with the daily financial matters the new company will have. It is essential to observe and respect the changes in the company, a few of them related to the tax liabilities. For instance, the company will have to pay the corporate income tax and bear in mind that the profits will belong to the firm, not to you personally as it was in a sole proprietorship.

How long does it take to change the business structure in Portugal?

There is no need to worry about the time the company structure is changed because this is a straightforward process with fewer bureaucracies. It is good to know that all the taxes need to be paid before the company structure is converted, in order to cut the time for changing the business type. As soon as the new documents are provided to the authorities and if they are properly drafted, the business conversion may commence. As an advice, it is recommended to inform your insurance company about the changes made, in order to receive a new insurance contract and coverage. Also, your business partners will have to be announced by the changes made in your firm in Portugal.

We kindly invite you to contact our team of company incorporation specialists in Portugal and ask for assistance if you want to change the company type.

The financial services in Portugal are diverse and not limited to banks whether local or established with foreign capital. Opening a company in the insurance field or in any non-banking sector is often the business solution for many entrepreneurs looking to generate profits in this highly appreciated sector. In order to understand the business conditions in Portugal, we invite you to direct your questions to our company incorporation agents in Portugal. Our team can handle the registration process of a firm in Portugal and can act on your behalf in matters of company formation and many more.

Types of financial companies in Portugal

Instead of banking activities, entrepreneurs from overseas can decide on several types of financial operations linked to the brokerage and insurance companies, or even financial counseling services provided to firms in Portugal. Mortgage companies, investment banks, credit companies, and loan associations are also suitable business options for those entrepreneurs looking to incorporate a company in the financial sector in Portugal.

What are the conditions for opening a financial company in Portugal?

A financial business in Portugal may operate on the market under the regulations of a limited liability company, one of the preferred structures that suits the needs of the foreign investors. Here are a few of the requirements of a financial company in Portugal that should be in the attention of businessmen looking to set up such firm:

• • the financial companies must respect the rules of the National Bank of Portugal (Banco de Portugal);
• • a business license for financial operations is issued by the Securities Market Commission in Portugal;
• • for financial activities on the internet (online banking for example) you must register the website you wish to activate;
• • the registration for tax purposes is also a mandatory condition.

Can I establish a partnership for opening a financial company?

Yes, a financial firm in Portugal can be registered as a partnership if two or more members decide on this form of business. The liability in the company depends on the personal assets which can be used in the case of debts in the firm.

If you have decided for a financial company in Portugal, we suggest you contact our team of company formation agents in Portugal and ask for assistance and details.

IT companies in Portugal can run under the rules of limited liability companies or LDAs as there are known. This is a common business structure that has an easy incorporation process and no harsh formalities with the entitled authorities in Portugal. With a multitude of activities, an IT company may represent a great business idea in this booming sector in Portugal, and for complete assistance and information about how you can open such company, we suggest you address your inquiries to our team of company formation agents in Portugal.

What are the types of activities of an IT company in Portugal?

The tech sector Portugal offers a wide range of opportunities to foreigners looking to expand their portfolios and to deal with activities like telecommunication, helpdesk support, software optimization, network services, email support, or cloud computing. Many companies in Portugal decide to externalize the IT support services instead of opening a department in this direction. The reasons for such an option are mostly related to the costs for equipment and experienced staff. An IT company can serve to many enterprises and can provide the necessary support in terms of communication, internet, and office equipment. 

Why should you open an IT company in Portugal?

Besides the fact that Portugal has a thriving economy which is highly appreciated by those investors looking to generate profits in the Iberic Peninsula, there are other reasons why you should start an IT business in Portugal:

• • the IT services provided can be offered with a long-term contract;
• • it is a known fact that IT support is subject to generous fees;
• • an IT company can offer maintenance services for a company’s servers;
• • an IT business can provide support for many companies in Portugal.

Opening an LDA for my IT company in Portugal 

Having an easy registration, LDAs in Portugal can be easily activated on the market, as soon as the Articles of Association, with information about the owners, the activities of the firm and the responsibilities of each member, are submitted to the Portuguese Trade Register. Let our specialists in company formation in Portugal handle the LDA registration requirements on your behalf. We remind that you can talk to us if you are interested in having us as legal representatives for your business in Portugal.

You can get in touch with our team of consultants if you would like to open an IT company in Portugal.

The Portuguese citizenship can be obtained by individuals looking to settle for good in Portugal whether by marriage, investment or ancestry. The citizenship in Portugal can be offered to foreigners after they have lived in this country for at least 6 years. Knowing the rules connected to the permanent residence and citizenship in Portugal will help foreign entrepreneurs decide on living on the long term in this country. Our company formation representatives in Portugal are at your disposal with assistance for company incorporation, and our lawyers can help you with the legal requirements of the right of abode in this European state.

Who can obtain citizenship in Portugal?

According to the Portuguese Nationality Act 2006, EU and non-EU citizens can apply for citizenship after they have lived in Portugal for the past 6 years. The requirements for married foreigners with Portuguese citizens are less restrictive, as they can obtain the citizenship after 3 years of permanent residence in Portugal. The citizenship in this country can be obtained by naturalization, by marriage, by origins and as a child of a former Portuguese citizen. 

What can you do with a Portuguese citizenship?

Citizenship in Portugal comes with several rights as established by the law for foreigners living in this country:

• • you can easily purchase properties in Portugal (houses, warehouses, lands, etc.);
• • you have the right to access the social benefits as any Portuguese citizen;
• • foreigners can work in Portugal without needing a work permit in this sense;
• • you have the right of voting in Portugal and you can freely travel within EU countries with a Portuguese passport.

The requirements for obtaining citizenship in Portugal?

The main rule for applying for citizenship in Portugal is related to the permanent residence in this country which cannot be less than 6 years, and 3 for married individuals. Also, if you have sufficient knowledge of the Portuguese language and culture, and if you do not have a criminal record, you can apply for naturalization. Information about the residence in Portugal is necessary at the time of your application for Portuguese citizenship..

We invite you to contact our company incorporation specialists in Portugal if you are a foreign entrepreneur interested in company formation in Portugal. Also, please talk to our advisors about how to obtain the Portuguese citizenship.

With complete attention to the legislation that oversees the gambling activities, foreign entrepreneurs can easily set up casinos in Portugal. Whether you would like to establish your company on the internet or as a permanent settlement, it is recommended to talk to one of our team of company incorporation specialists in Portugal and find out details about the registration procedure.

Who regulates the gambling activity in Portugal?

The Gambling Regulation and Inspection Service is the main regulator of the casino activities in Portugal, whether established on the internet or not. It is good to know that the gambling activities cannot be established without certain licenses and permits for which strict rules are applied. 

Can I buy a casino in Portugal?

Yes, foreign or domestic entrepreneurs who do not want to set up a casino from scratch and who want to avoid the formalities for obtaining the necessary licenses have the possibility of purchasing an already registered casino business in Portugal. This procedure is normally less restrictive and it is subject to the transfer of the ownership of the firm. Most gambling activities are formed under the regulations of a limited liability company which is the suitable business entity for numerous operations.

Types of gambling activities in a Portugal casino

Even if it is considered a sensitive activity due to the unceasing efforts of the authorities that fight against the financial frauds and illegal gaming, the gambling in Portugal is preferred by foreign investors interested in generating money in this important field. Among the gambling activities of a casino in Portugal, we mention the following:

•  French roulette, blackjack, stud poker, punto banco, poker cash;
•  varied online and offline poker tournaments through terrestrial casinos;
• American roulette, blackjack and 21, slot machines, and varied online poker games;
• betting activities whether online or offline and linked to sports games.

An online casino can introduce the virtual currency instead of liquid money, and the most used and prized digital money at the moment is the bitcoin. This virtual currency may be used for a wide range of gaming activities on the

We invite you to get in touch with our team of company incorporation agents in Portugal if you would like to set up a casino in Portugal. Find out more details from our advisors.

All types of gambling activities are legalized in Portugal at the moment, including casinos, as well as lottery. The gambling industry in this country is thought to be very promising, being more relaxed from the legislation point of view when compared to other European jurisdictions. 

As follows, our company formation consultants in Portugal present a few key aspects related to gambling activities in Portugal.

Which authorities are responsible for regulating gambling?

In Portugal, gambling activities are regulated by the Gambling Regulatory Authority. This authority monitors, inspects and regulates land-based games of chance (casino games, bingo, slot machines and poker) and the online gambling (these are games of chance, pari-mutuel and fixed-odds horseracing bets and so on).

Games which are run by the state (lotteries, land-based pari-mutuel horse betting and others) are operated by the Santa Casa da Misericordia de Lisboa (SCML), through its Games Department.

What license is required for land-based gambling?

When it comes to casinos and bingo halls, land-based gambling operators have to attend a public tender procedure in order to obtain a license.

Several licenses can be obtained, however, a license covers only a certain geographic area.

Our Portugal company formation advisors can provide more details on this type of license.

What are the eligibility criteria for the gambling license in this jurisdiction?

To be eligible for a land-based gambling license in Portugal, the operator has to:

• - Be a limited liability legal entity with a registered office in an EU member jurisdiction or in a country which signed the EEA;
• - Be compliant with the administrative cooperation with regards to taxation, combating fraud and money laundering.

Legal entities which are not registered in Portugal must have a branch in the country, too, in order to be able to obtain this type of license.

Our company registration agents in Portugal can assist entrepreneurs who are interested in opening a gambling company in Portugal.

What limitations are placed on customers of gambling activities in Portugal?

Land-based gambling activities in Portugal, namely games of chance (casinos and bingo halls), have to respect the following restrictions placed on their customers:

1. The minimum age for entering these facilities and playing is fixed at minimum 18 years;
2. The limitation and prohibition on certain individuals to attend the gambling activities based on the fact that these individuals have positions of responsibility in public authorities;
3. The limitation and prohibition for entering these facilities and playing for individuals who are self-excluded or banned from gambling by the authorities or by a court decision;
4. The limitation and prohibition of persons who are employed by casinos to take part in the game;
5. Other limitations: we can provide more information on what these other limitations are.

If you need further details on the gambling laws and regulations in Portugal, or for help in setting up a company in Portugal, please get in touch with us 

Just like in many European countries, the pharmaceutical industry represents a large source of income, including in Portugal, with the mention that this sector is mostly controlled by foreign multinationals. Big corporations which produce medicines and related products are welcomed in Portugal through the pharmaceutical structure (but not limited to it) which is well developed in the state. Opening a pharmacy in Portugal may represent a great business idea, especially if we consider that a drug store can assist both a community and a hospital or a private clinic. For company formation in Portugal and the related conditions in this sense, you may address your requests to our specialists in company incorporation in Portugal.

Setting up a pharmacy in Portugal

The National Health Service in Portugal oversees the pharmaceutical market in Portugal and the companies which activate in this field, mainly through the National Authority of Medicines and Health Products. A pharmacy in Portugal can be established in the main cities or can activate in hospitals and private clinics. It is good to know that most pharmacies in Portugal activate through subsidiaries, but entrepreneurs who want to establish their own drug stores should first of all sign contracts with the main suppliers in the country or outside Portugal.

The Ministry of Health is in charge of approving the activities of a pharmacy in Portugal and issues the mandatory licenses and permits for a legal operation on the market. Most drug stores respect the usual working schedule from Monday to Friday, short hours on Saturday and closed on Sundays and holidays, but it is good to know that a pharmacist will be at the disposal of clients during the night shifts or for emergencies. We also mention that a pharmacy can only activate with a qualified pharmacist, and if it is located at the optimal distance imposed by the regulations in this matter.

Registering a company in Portugal is not a difficult process and even more, it can be completely supervised by our company formation consultants in Portugal

What other services can a pharmacy in Portugal offer?

The concept of pharmacy in Portugal does not limit to selling medication, as the government and the pharmacists' association have established a wide range of programmes and services which have proven successful for patients and clients. For example, a person can receive information about how to quit smoking or can be offered specific counseling, medication conciliation, and management programs: all these in a pharmacy. 

If you are a business person who wants to expand the operations in the pharmaceutical sector in Portugal, we invite you to contact our team of company incorporation representatives in Portugal for comprehensive support and guidelines.

According to the Portuguese Constitution settled in 1976, everyone living in this country has the right to freedom of expression and information. The freedom of the press is also comprised by the Constitution and represents a major right which was achieved after the Carnation Revolution. The Press Law in Portugal guarantees the rights of journalists but also the ownership of media companies in this state. The Regulatory Authority of Media in Portugal supervises the activities of publishing companies and allows foreigners to set up such businesses without restrictions. A limited liability company is in most cases the preferred business entity for publishing activities in the country, but complete information in this sense can be obtained from our company formation specialists in Portugal.

How publishing companies can be registered in Portugal

According to Article 10 stipulated by the Press Law in Portugal, publishing companies can activate in the media with periodical or daily basis newspapers, magazines, periodicals, journals, books or with publishing related services. One can set up a publishing company through a limited liability company whether starting as a local newspaper or borrowing the concept from abroad in a form of publishing branch company.

The company incorporation procedure in Portugal starts with the Portuguese Trade Register where entrepreneurs must provide the entire documentation containing information like the name of the publishing business, the type of activities, the owners, the board of directors, the minimum share capital, and the business address among many others. If you are interested in opening a publishing company in Portugal, you may talk to one of our specialists in company incorporation in Portugal.

Types of media companies in Portugal

A well-developed market like the one in Portugal lets foreign investor establish their activities in varied sectors, among which a prolific one is the media. Publishing companies with foreign capital in Portugal may involve not only printing newspapers and magazines but setting up online media companies, TVs, and radios under certain conditions and respecting the legislative framework for broadcasting in Portugal.

We invite you to get in touch with our team of company formation agents in Portugal if you want more details about how to start a publishing company in this country.

Focusing on varied ways to attract foreign investments in the country, the government in Portugal offers a solid and reputable business environment for all entrepreneurs willing to set up their activities in diverse sectors with huge potential for expansion. As an example, the retail sector in Portugal is one of the most productive divisions where entrepreneurs worldwide can generate easy profits. One can establish tobacco shops or kiosks and benefit from a type of business that continues to grow. In respect to the laws regarding the sale of tobacco in the European Union and considering the internal legislation, our company formation agents in Portugal can help entrepreneurs set up a tobacco shop. Our team can offer support throughout the company registration process in Portugal.

The legal aspects linked to the tobacco products in Portugal

As a state member of the European Union, Portugal functions with the provisions stipulated by the Tobacco Products Directive (2014/40/EU), a solid legislation which addresses to all EU countries in matters of how the tobacco market should legally operate. It is good to know that since 2006, Portugal is a member of World Health Organization and agreed on the Framework Convention on Tobacco Control.

What kind of tobacco shop can you register in Portugal?

Depending on the type of business a foreign or a local entrepreneur wants to establish, there are varied choices through which tobacco products can be sold, such as:

•    importing cigarettes and other tobacco items from the home country in Portugal;

•    opening a tobacco kiosk in the main shopping centers in Portugal;

•    selling tobacco with the help of newspaper stands;

•    selling tobacco in duty-free shops in Portugal’s airports.

A big cigarette factory in Portugal represents the main source for those interested in buying tobacco products. Also, the foreign branches of leading cigarette brands are established for many years in the Portuguese market, being on top choices among suppliers of tobacco products. Selling tobacco in Portugal is a business choice one can consider and can activate with the help of a limited liability company, a suitable and popular entity which can be easily registered.

In matters of company incorporation, we suggest you talk to one of our specialists in company formation in Portugal, so please feel free to contact us for guidance and support.

Starting a business in Portugal is not limited only to the recognized forms of companies like limited liability companies, sole proprietorships, joint stock enterprises in the country’s key industries. A foreign investor can set up a franchise in Portugal, respecting the rules and regulations of the Civil Code and the Commercial Law. Under complete supervision and guidelines, your franchise in Portugal can be easily set up with our company formation agents in Portugal. Our team of advisors can also help business persons through the company registration process in Portugal.

Requirements for opening a franchise in Portugal

With a stable economy, a great geographic location with important exits to the Atlantic Ocean and business image strengthened during many years, Portugal is a respected member of the European Union and a significant business hub which is on top of the list of foreign investors. A franchise business in Portugal is considered a suitable option for entrepreneurs who want to generate money with the help of a well-known brand through a franchise. There are two parties involved in such business: the franchisee (the entrepreneur interested in opening the business) and the franchisor (the company or brand that offers franchising services). The business starts with setting the conditions of franchising and these regard the amount of investment involved, the profit expected, the included taxes and the time in which the investment is returned.

It is good to know that the franchisee will receive instructions, information, an initial stock and a proper location when settling the franchise agreement with the franchisor. This is part of the deal, as established for such types of entities in Portugal. Knowing how the documents should be prepared will help the entrepreneur start the activities immediately, therefore, we suggest you address your requests or concerns regarding the franchising system to our Portugal company formation representatives. Also, if you want to set up a company in Portugal and you don’t know which is the proper structure that matches your needs and expectations on the market, you can talk to our advisors.

The franchise contract in Portugal

An agreement between the franchisee and franchisor in Portugal represents a settlement in which information about how to establish and legally operate a franchise under the granted license. Additionally, a franchise agreement in Portugal will comprise information about the investments made, the marketing methods and the necessary resources to open the franchise. On request, an entrepreneur can create more than just one franchise but considering that the investments will be bigger. A franchising business is considered successful not only in Portugal but also on an international plan, therefore, many investors are attracted by this form of activity for guaranteed profits. 

If you are also interested in setting up a franchise in Portugal, you can contact our team of company formation consultants in Portugal for advice and support.

Expanding a business through different channels and methods in Portugal should also involve opening an Amazon store. This is considered the largest online shopping mall which addresses both customers and sellers. If your business plans include setting up a shop on Amazon, we mention that our specialists in company formation in Portugal are at your disposal with information and assistance.

Amazon in numbers

Amazon is the biggest e-commerce platform established in the USA and found in numerous countries worldwide through representative offices. At the moment, there are around 300 account sellers, but the number grows daily, as there are many entrepreneurs who want to sell their goods and services worldwide. Still speaking of numbers, there have been registered profits of about $316 billion in 2016 for Amazon, but the revenues are even bigger for 2017 according to financial experts.

If at the beginning it only addressed to the selling of electronic goods/ services, and later cloud computing, Amazon is now home to varied products, including clothing, jewelry and even grocery. Our team of company formation agents in Portugal can explain how you can set up an Amazon shop linked to your activities.

Conditions to set up an Amazon store in Portugal

As the main requirement to open an Amazon store, we mention that a limited liability company registration should be considered, in order to legally start the activities online. This is the most popular type of business in Portugal and can be created by at least two shareholders having a minimum share capital of EUR 5,000. The company incorporation process in Portugal is easy and can be done within a few days and with less bureaucracy. Having an Amazon shop means issuing invoices for customers, therefore, if you do not have a legal entity registered, you can ask support from our team of advisors to open an LLC.

Payment methods for your Amazon shop in Portugal

As for any kind of website, clients need to have a few payment methods at disposal, in order to properly purchase the chosen items. Two of the main payment methods widely used are PayPal and the merchant account. PayPal is a respected and trustful payment method which allows clients to pay the products through a secured platform linked to a bank account. The merchant account can be set up when registering your business in Portugal, in order to permit customers to pay with the help of credit or debit cards issued by any kinds of banks worldwide. An Amazon shop has a well-developed platform that lets clients see the price in their own currencies.

The reasons why you should set up an Amazon store in Portugal

As an extension of your business in Portugal, an Amazon shop can be the proper solution if you want to introduce your goods and services on an international market. Having an Amazon store will require a storage place and also skilled workforce who must take care of each step of the orders, starting with verifying it on the platform and ending with the shipment. Entrepreneurs from abroad choose Portugal for business also for a favorable taxation system and many incentives that address to the foreign investment sector.

If you want to set up an Amazon store in Portugal, we invite you to contact our team of company incorporation agents in Portugal.

The e-commerce business in Portugal is developing in a fast manner and according to statistics for 2016, there are around 3 million people who prefer buying varied items online. This industry generated about EUR 4 billion in the same year and there are numerous investors and small entrepreneurs who decide to set up their businesses online, whether as an addition to their already established company, in order to present the products and services or only for trading activities on the internet. In this matter, a website can be set up considering that in Portugal one can use the .pt domain name. For licenses and special permits in this matter, you may address to our company formation agents in Portugal.

Reserve a name for your website in Portugal

Domains in Portugal are granted by the Foundation for National Scientific Computing. The domain name registration can be done for a minimum one-year validity at the authority mentioned above if the requirements in this matter are fulfilled. Any company in Portugal, whether registered by a local or a foreign entrepreneur can open a website through which the firms’ products and activities can be promoted. Moreover, the businesses with activities in the retail sector can set up websites through which they can present the products for selling purposes. Please consider the following documents when applying for a name reservation for your website in Portugal:

• copies of the owners’ documents;

• the fiscal identification number of the company;

• documents which provide information about the company’s area of activities;

• proof of registration fee payment.

Website requirements in Portugal

When deciding on a website name, one should know that in Portugal it is allowed to register a name of at least 3 characters and a maximum of 63.  A SSL (Secure Sockets Layer) certificate is necessary when opening a website in Portugal, as this document regards the protection of online payments and client data. In other words, a SSL certificate is a proper way to legitimize your future website and guarantee complete privacy regarding credit card information. Setting up a website in Portugal requires complete attention as there are other important requirements to consider: web hosting, email, payment platforms, DNS (domain name system) management services. In matters of documents and conditions when opening a website in Portugal, we suggest you solicit guidance and information from our specialists in company incorporation in Portugal. We mention that the company registration in Portugal is an easy process and entrepreneurs can start their businesses in a rapid manner, especially if complete assistance is offered by our team. 

Who can open a website in Portugal?

Besides registered companies in Portugal, individuals can open websites for varied reasons: 

• to present their portfolio or services;

• to sell goods.

Please consider that the retail sector requires varied licenses in order to sell products like clothing, equipment, electronics or food.

The content of a website in Portugal

A website can be created in varied ways, but one should consider adding information like:

• the description of the company (about us);

• products description;

• payment details;

• contact (phone number, email, social media);

• sitemap.

For complete information about how to open a website in Portugal, we invite you to contact our team of local company incorporation agents in Portugal.

Foreign investors can direct their attention to non-profit organizations or foundations in Portugal if they want to collect funds and invest them in science, education, or research in varied areas of interest. A foundation deals with donations made by companies or citizens and it is obliged to act in a transparent manner. Our company formation specialists in Portugal can help individuals set up foundations in Portugal and, even more, the same team can offer support when registering a company in Portugal.

Documents preparation for a foundation in Portugal

Foundations in Portugal are registered as associations with the IRN (Instituto dos Registros e Notariado) in the country, where several documents are solicited, among which we mention:

• •    the names of the owners of the foundation in Portugal with ID copies and details about the business address;
• •    documents mentioning the purpose of the charity and where the funds will be directed;
• •    a document which comprises the rules of the association in Portugal;
• •    the lease contract of the charity.

A foundation in Portugal can be set up with a fee of about EUR300, and choosing the name of the charity might be subject to a different fee. We mention that a foundation or a non-profit organization in Portugal will receive a fiscal ID, will have a bank account for future transactions and will be supervised by a board of managers as soon as it is established. In matters of company registration in Portugal and the documents which need to be prepared, we suggest you to ask for support from our specialists in company incorporation in Portugal.

Accounting services for foundations in Portugal

Even if it is a non-governmental organization (NGO), there is still a need for an accountant who can take care of the financial aspect of the charity, especially if the owner plans gathering funds of about EUR 100,000 per year. Furthermore, the association will have employees, therefore, payroll services are necessary. The bookkeeper of your charity in Portugal will take care of each transaction in matters of documents and will explain each detail regarding the taxes imposed in this matter, if any.

What kind of activities are linked to an NGO in Portugal?

The main activity of a foundation in Portugal is to raise funds and direct them to different social projects and get involved in varied activities, in a very transparent manner. Charities established in Portugal are not subject to taxation, however, the support of an accounting firm is needed.

Is it hard to establish a foundation in Portugal?

No, there are no complicated requirements for opening a charity in Portugal, however, there are a few requirements to take care of, with complete help provided by our team of company formation representatives in Portugal. Here are a few steps to consider when opening a charity in Portugal:

1. It is important to look for sponsors in the first place, at the time the foundation is set up.
2. A business plan is recommended, even if you establish an NGO in Portugal.
3. The paperwork for opening a charity in Portugal is the next thing to consider and prepare.
4. A board of managers and a representative need to be appointed for a charity.

The process of opening a foundation in Portugal is not complicated or time-consuming, nevertheless, there are a few steps and formalities to focus on. Besides the above-mentioned procedures for opening a foundation in Portugal, it is necessary to request a certificate of admissibility at the National Register of Legal Persons for which the preparation of the minutes of the general meeting is needed. Additionally, if you need support in this matter, feel free to get in touch with one of our company formation experts in Portugal.

Charitable purposes of foundations in Portugal

Promoting education and learning, community communication, volunteering, or supporting human rights and the environment are only a few of the targets and responsibilities of charities in Portugal, or anywhere in the world. Foundations in Portugal can also support social and medical research, or address and assist persons who are looking for jobs in the country. 

How do I promote a foundation in Portugal?

Most charities have their activities presented on the internet through varied channels like websites, Facebook pages, Instagram accounts, Google ads, etc., or offline with the help of radio and television, social communities, social projects, and related activities. Numerous foreigners have a business background and who decide on opening charities in Portugal, using the previous experience and marketing methods among other things.  

Pros and cons of foundations in Portugal

Charities are exempt from taxation, they have a good level of public trust and have correct purposes as they act only for the best interest of the public. Among the cons of foundations in Portugal, we mention that charities cannot be involved in political activities, cannot work for a groups’ interest and cannot involve family members, or offer work to a trustee’s family company, for example.  

Additional details about NGOs in Portugal

The documents of the charity need to comprise information about the founding members, the rights and liabilities, details about the administration and the management of the organization. It is important to know that the first general meeting needs to take place in no more than 15 days from the date the foundation was established in Portugal. The supervisory board, the general assembly and the board of directors are normally elected at the time the general meeting takes place. Founders can also request the incorporation card which contains the Fiscal Identification Number, and then submit the Declaration of Opening of Activity on the internet, as proof you have been registered for tax obligation. NGOs in Portugal can be established for many reasons, but the first thing to consider is the charitable purpose.

In terms of business in Portugal, the following information can be in the attention of foreign entrepreneurs wanting to set up their operations and companies in the Iberic Peninsula:

• • In 2018, out of Portugal's total rate of investments, 21.5% came from Spain;
• • In the same year, 19.3% of the country's total stock of investments came from Luxembourg.
• •    there have been numerous companies revitalized with the help of Golden Visa Programmes and investments of EUR 350,000;
• •    Portugal ranks 34th out of 190 countries in terms of economy, mentioned by 2019 Doing Business report;
• •    8.9% is the unemployment rate in Portugal registered in 2018, the lowest in the past decades.

If you are interested in more details about how you can establish a foundation in Portugal, you are invited to talk to one of our company formation representatives in Portugal. Additional information about how to set a company in Portugal or about how to register your business can be solicited from our team of company incorporation consultants in Portugal, so please feel free to contact us. 

Portugal is situated in the western part of Europe and benefits from important exits at the Atlantic Ocean. This is one of the main reasons why tourism in Portugal developed quite well and opened doors for foreign investments worldwide. A suitable business plan which might attract investors from abroad is related to opening a hotel in Portugal and discovering the opportunities in this field. In matters of documents, licenses and permits, our company formation agents in Portugal are at your disposal if you want to set up a hotel or open a company in Portugal.

Steps in setting up a hotel in Portugal

If you have decided for a particular company form and a business plan when opening a hotel in Portugal, it is suggested to reserve a name and perform a check-up to see if it is available. Besides preparing the articles of association, details about the business address and about the company’s shareholders, the following requirements should be considered:

• apply for a company and collective cards to receive the business’s ID;

• apply for a Certificate of Admissibility with the IRN (Registries and Notaries);

• open a bank account to deposit the minimum share capital;

• register for taxes with the Tax Office in Portugal;

• register the hotel business with the Trade Register in Portugal.

All the conditions and rules set for registering a company in Portugal can be explained by our specialists in company incorporation in Portugal. The same team can provide you with support and guidance in the company registration procedure in Portugal.

Licenses and permits for a hotel in Portugal

There are numerous business fields in which particular licenses and permits are necessary to start the activities in the chosen domain. It is also advisable in the cases where a hotel in Portugal needs to be set up. Considering the health and safety standards which are at the base of any kind of license, one can apply for such important documents with the Real Estate Construction Institute (INCI) in Portugal. Additional licenses and permits in the tourism sector are issued by the local Office for Tourism in Portugal, in the city where the hotel will be established. Please consider that the construction licenses and permits can be obtained from INCI in Portugal.

Opening a hotel in Portugal can prove successful if a proper business plan and complete guidance and information are provided. Our team of company formation representatives in Portugal can offer ample sustenance and details, therefore, we invite you to contact us. 

A preferred touristic destination like Portugal cannot be passed away when it comes to the varied investment opportunities you can choose from. With about 60 million people visiting the country in 2016, Portugal is for sure a great choice for entrepreneurs who want to start their activities in the food industry, a prosperous sector and an important piece in the overall economy. Considering the health and safety food standards available for EU (European Union) states, one can open a restaurant in Portugal, a matter where our company formation agents in Portugal can help with drafting the documents.

Choosing the type of restaurant in Portugal

Private limited liability companies, limited partnerships, or sole proprietorships are among preferred forms of businesses in Portugal from which you can choose when setting up a restaurant in Portugal. It is suggested to select the type of restaurant you want to establish, a large or a small one, and then choose the name of your business. Bistros are quite preferred in Portugal because they are elegant, they address to any kind of client and even though they are small businesses, the menus can be rich and can contain both local and international cuisine. 

Steps in opening your restaurant in Portugal

One should consider that after establishing the type of business, several requirements must be taken into consideration when drafting the documents, no matter if you appoint a lawyer or our company incorporation specialists in Portugal to represent your firm:

• prepare the articles of association;

• reserve a name for your company;

• register for VAT and social contributions;

• open a bank account for minimum share capital and further financial transactions;

• apply for the necessary licenses and permits available in the food industry.

We remind that the commercial licenses you need to obtain for your restaurant regard the construction of the building, if not rented, and the one related to the health and safety standards, as general rules imposed by the EU (European Union).

Opening a restaurant in Portugal can be a successful business if a marketing plan is suitably created, in order to meet the requirements on the market with quality and top standards.

For additional information about how to establish a restaurant in Portugal, we invite you to contact our team of advisors in company incorporation in Portugal.

A recruitment company is a suitable type of business in a country like Portugal in which many companies seek for human resource consulting services. When drafting the documents for your recruitment company in Portugal, we remind that it is best to ask for guidance in this concern from our company incorporation agents in Portugal. No matter the type of business you want to establish, our team of advisors can provide you with support.

Steps when opening a recruitment company in Portugal

Small or medium business in Portugal, including the recruitment companies, can be incorporated as private limited companies where a minimum share capital of EUR 5,000 is required. The stockholders can set up recruitment companies as soon as the following steps and conditions are met:

•    verifying and registering the name of the recruitment company;

•    registering for VAT;

•    obtaining the necessary licenses;

•    opening a bank account;

•    hire qualified personnel. 

A recruitment company in Portugal can properly start the activities, if all the services provided can be seen and explored via the internet, with the help of a website. Entrepreneurs should consider having a web page once a business enters the market, including a recruitment company in Portugal. One should consider that the company registration in Portugal has been simplified in the past years and can be supervised by our team of agents.

Why open a recruitment company in Portugal?

Recruitment companies in Portugal can help local and foreign businessmen search for suitable and experienced staff once they decide to enter the market. This type of business will work with a large database of applicants, which is why a psychological tactic and complete analysis must be provided before proposing the candidates to any kind of firm in the country. A recruitment business in Portugal should establish from the beginning the area of interest and the domains in which they want to activate, or they can focus on many sectors in the same time. Engineering, IT, communications, tourism, agriculture, finance, or education are domains where the need of skilled workforce is necessary, therefore, companies working in such fields will in most cases ask for the services of a recruitment company in Portugal.

For any type of company you might want to open in Portugal, we suggest you contact our team of company incorporation specialists in Portugal.

Portugal is to be found in the Western Europe and the exits to the Atlantic Ocean make the country suitable for varied trading activities with countries worldwide. The autonomous regions like Madeira and Azores Islands are also part of Portugal and two of the preferred destinations among tourists. To set up a travel agency in Portugal, one should know the requirements in this matter, whether he/she wants to offer local or international touristic packages. Our company formation specialists in Portugal can help you set up a travel agency in Portugal.

Requirements to open a travel agency in Portugal

A travel agency in Portugal can be set up as a private limited company with a minimum share capital of EUR 5,000, as a public company with at least five stockholders or as a limited partnership where there is no need of a minimum share capital. In order to open a travel agency in Portugal, the entrepreneur must provide details about the name of the company, the address, the business plan, the articles of association and information about the bank account where the minimum share capital will be added. The company registration procedure in Portugal is an easy process, once the documents have been prepared and offered to the Commercial Registry in Portugal. Please consider that special licenses and permits must be obtained in order to start your activities as a travel agency in Portugal. In this matter, the Directing Council of Turismo de Portugal issues such documents.

Please consider that our company formation agents in Portugal can provide you with complete assistance when drafting the documents for your travel agency in Portugal. The company incorporation in Portugal has less bureaucracy and can be done within a few days.

Why open a travel agency in Portugal?

A travel agency in Portugal can work as a branch of a foreign tour operator or it can be a brand-new agency which can deal with organizing and selling tours and holidays inside the country or abroad. Besides that, your travel agency can offer accommodation services, transportation or can intermediate the sale of varied touristic packages and services. 

With beautiful landscapes, rich culture and traditions you cannot pass by, Portugal is definitely a special country, opened for tourists worldwide. For example, the tourism sector rose by 13% last year, when about 10 million people visited Portugal, another strong reason why you should set up a travel agency here. Besides offering local touristic packages, a businessman willing to have a travel agency in Portugal can focus his/her attention to the exotic places and well-known countries for special touristic packages and can offer all-inclusive facilities.

If you are looking to open a travel agency in Portugal, please feel free to contact our team of company incorporation specialists in Portugal for complete details in this matter.

Companies from overseas interested in establishing their presence on the market in business activities in Portugal without carrying out independent commercial activities have the possibility to register liaison offices or representative offices in the country. In other words, such office will represent the major communication channel between the parent enterprise and the clients in Portugal. If you want to open a liaison office in Portugal, we invite you to solicit complete information and guidelines in this matter from our company formation specialists in Portugal. They can also help you register a company in Portugal, where the needed documents must be provided in accordance with the local law.

What are the main responsibilities of a liaison office in Portugal?

A liaison office in Portugal strongly relates with the foreign company or business that wants to set up the presence in the Portuguese market. A representative office in Portugal will not make money transactions or activities in this matter, but the accent will be put on promoting the products or the services of the parent company. The marketing activities will also be part of the liaison offices in Portugal, with no restrictions in this matter. Moreover, a liaison office in Portugal will pretty much depend on a local representative, once the office has been registered.

If you want more details about how to set up a liaison office in Portugal, you may ask our company formation agents in Portugal. Our advisors can help you with the registration procedure in Portugal.

How to set up a liaison office in Portugal

The Portuguese Commercial Registry deals with registering the liaison or representative offices in the country, where the documents of the company from overseas are necessary besides the following:

• •     Articles of Association;
• •     details about the type of business;
• •     the certificates which provide the foreign company is registered for tax purposes;
• •     the name and the address of the liaison office in Portugal;
• •     the name of the representative of the liaison office in Portugal.

The attributes of a liaison office in Portugal

Company owners and investors in Portugal know about the importance and the attributes of a liaison office. This is an important structure in Portugal that allows you to concentrate more on the business market and the ways in which you can get in touch with potential clients. The representative agent of your liaison office in Portugal needs to have residency in this country before commencing any operations. With a liaison office in Portugal, you can develop numerous marketing strategies, promotional and advertising activities that describe the operations of your business abroad. A representative office in Portugal cannot act like a normal business structure, with financial operations and contracts to sign, but the main advantage is that such structure might represent the proper option to develop a preliminary business plan before thinking of establishing a limited liability company or a partnership, for example. In most of the cases, a representative office can be an ideal choice for small and medium entrepreneurs from overseas who want to test the Portuguese market before starting a business from scratch. Let one of our company formation agents in Portugal tell you more about how to set up a liaison office in Portugal and about the formalities involved.

Making connections with future clients in Portugal

Foreign company owners who need to be represented in Portugal can think of registering a liaison office in Portugal. This kind of structure can be an excellent choice for creating business connections with local partners or future clients in Portugal. A foreign company will have to create a business plan and agree on the promotion and marketing strategies that can be established and developed with the help of a representative agent and a liaison office in Portugal. Contacting potential clients and collaborators will represent the main step before setting up a traditional office. In most of the cases, if the liaison office is a success, a limited liability company in Portugal can be taken into consideration as part of the business plan for this country. We remind that our company formation specialists in Portugal can offer support for foreigners who want to set up companies in Portugal, regardless of the chosen structure. We are at your disposal if you want to establish branches and subsidiaries or register a sole proprietorship.

FAQ about liaison office

1. Is a liaison office the same thing with a representative office?

Yes, liaison offices are representative offices for foreign companies that need to develop marketing and promotional activities in Portugal.

2. Who can set up liaison offices in Portugal?

Any foreign entrepreneur or representative of overseas companies with interests in the business field in Portugal can think of opening a liaison office in this country. It would be a lot easier to test the market and create business contacts.

3. What are the activities of a liaison office in Portugal?

The main activities of a liaison office in Portugal are strictly related to the promotional and marketing strategies, in order to get in touch with potential collaborators and clients. Your company from abroad can be well represented with the help of a liaison office in Portugal.

4. Are there any financial operations with a liaison office?

No, there cannot be financial operations when having a liaison office in Portugal. This is a simple structure that has strict activities without involving money transfers, invoices, and related operations. One of our agents can tell you more about a representative office in Portugal.

5. Can I change a liaison office into a company in Portugal?

Yes, if you believe that a liaison office successfully represented your interests in Portugal, you may consider the next business step for your future operations. You can register a company from scratch with the Portuguese Trade Register and the support of our company formation agents.

Making investments in Portugal 

Portugal is an appealing investment destination for a large number of foreign entrepreneurs interested in placing their activities and enlarge their portfolios in this part of Europe. The great connections by air, sea, and land are among the solid advantages of the business climate of this country, alongside prolific sectors like tourism, agriculture, real estate, manufacturing, etc. Here are some facts and numbers that sustain more the business in Portugal:

1. The 2020 Doing Business report ranks Portugal 39th out of 190 economies in the world;
2. 27% of the total FDI stock for 2018 in Portugal was directed to the financial services sector;
3. Approximately USD 135 million was the total FDI stock for Portugal in 2018;
4. Citizenship by investment can be granted to foreigners who make investments of at least EUR 350,000 in Portugal.

Any information about how to register a liaison office in Portugal can be obtained from our company incorporation agents in Portugal, so please feel free to contact us.

In order to immigrate to Portugal from India, an Indian national will need to apply for and obtain a long-term visa. This can be issued for various purposes, such as a working (as an employee or independently), for study or training as well as scientific research or family reunification when applicable.

India residents who wish to travel to Portugal need to submit their application at a center in New Delhi or Mumbai. The Embassy of Portugal in New Delhi or the Consulate General of Portugal in Goa assesses the applications.

There are various conditions that apply according to the type of visa chosen to travel to Portugal for longer periods of time and we recommend that applicants get in touch with our Portugal immigration agents who can offer personalized information according to their situation. 

Below, we describe the main types of long-term visas which can be applied for by those Indian nationals who are interested in immigration to Portugal.

Ways in which an Indian national can move to Portugal

The Portugal residency visa is the one suitable for foreign nationals who wish to move to the country. It can be granted according to the reason for the move, as follows:

1. for employment: both employed work and self-employed work, it requires a previously concluded employment contract or proof thereof as well as a business plan or the presentation of the intended investment or the qualifications of those who offer self-employed services.
2. for research purposes: scientific researchers who are part of a program or who have an agreement with a Portuguese university or another research purpose can apply for this visa.
3. for study purposes: suitable for those Indian nationals who wish to move to Portugal to study or engage in subsequent training.
4. family reunification: this is possible for those individuals who wish to join their spouse, parents or siblings.

The specific requirements differ according to the type of visa and we do recommend talking to one of our immigration lawyers in Portugal before traveling to the Embassy. Our immigration specialists are able to give you personalized information so that you can be prepared with all of the needed details before visiting the authorities for submitting the application.

The visa fees can vary according to the visa type, however, in general, most types of visas like those for employment or family reunification are approximately 90 euros, not including other taxes for the preparation of the documents that may also be required. The applicant should know that the visa fee is not refundable, another important reason to make sure that you have all of the documents in order before submitting the application so that you have higher changes for the visa to be approved. 

How to obtain a residence permit for employment in Portugal

The employment visa is one of the most popular types and it can be awarded to Indian nationals who have signed an employment agreement with a Portuguese employer, to those who wish to engage in a teaching activity as well as those who are highly qualified and those who are applying for intra-corporate transfers. A separate type of permit is also awarded to those who are accepted for a highly qualified activity in certified companies (the tech visa).

Understanding the employment conditions is essential when applying for a residence permit for employment, self-employment or other types of remunerated work. For example, those who apply for a residence permit for self-employed individuals with a residence visa should note that they can become employed by a third party, provided that they apply for the relevant residence permit for this purpose. The application is to be submitted to the Foreigners and Borders Service (SEF).

One of our Portugal immigration agents can provide individuals with more information about the conditions for employment, self-employment as well as other types of work, such as highly qualified work. 

How to obtain a residence permit for investment purposes in Portugal

Indian investors who wish to move to Portugal can also consider the Golden Visa program, based on a significant investment in Portuguese real estate. This type of visa is available for third-country citizens who wish to conduct an investment activity in real estate or for other purposes, as seen below:

• 1 million euros: the visa is awarded for capital transfers of this amount or above.
• 10 jobs: when the investor is able to create ten new job positions.
• 500,000 euros investment: in real estate in Portugal.
• 350,000 euros: for real estate investments in property with a construction date of more than 30 years or located in an area treated as an urban regeneration one.
• 350,000 euros: capital transfer for investments in research activities undertaken by public or private institutions. 
• 250,000 euros: capital transfer for investments in arts or for the reconstruction of national heritage.

You can find out more about this option in this article and you can always reach out to our immigration lawyer in Portugal for more details.

Indian investors who have the ability to make the aforementioned capital transfers of purchase property of the said amount can benefit from acquiring the investor visa as it also contains provisions for the family members. The applicant and the family members who comply with the requirements set forth by the legislation in force will be granted a permanent residence permit that can be renewed. 

The holder is entitled to live and work in Portugal, provided that he/she stays in the country for 7 or more days in the first year and at least 14 days in the following years. Under thias visa scheme, the holder may apply for Portuguese citizenship by naturalization, provided that all of the other conditions are met.

When applying for a startup visa or an investment visa with the creation of job positions, entrepreneurs should also be well aware of the current company formation regime and the requirements for social security contributions set forth by the Portuguese Government through its ministries.  

Applying for a Portuguese visa

The checklist below applies to a visa for employment or self-employment purposes. For other types of visas, you can talk to one of our Portugal immigration agents. The checklist for a work visa includes the following documents:

• the filled-in application form;
• two recent passport-size photographs, no older than six months;
• a valid passport (valid for at least three months);
• police clearance certificate issued by the Passport Office;
• proof of sufficient income to cover the stay in Portugal;
• proof of accommodation in Portugal (lease contract for example);
• travel medical insurance;
• copy of the work contract signed by the employer and the employee;
• proof of independent work by means of a contract between the self-employed individual and the other party (for independent workers);
• air ticket reservation.

The checklist can differ depending on the jurisdiction in India in which it is submitted. For example, the list of documents of the Consulate General of Goa can be different from that of the Embassy of Portugal in New Delhi. You can talk to our immigration lawyers in Portugal depending on the area in which you live. It is recommended to have all of the required documents in their original form when you have the interview with the Embassy or the Consulate General.

Once you arrive in Portugal, you will need to apply for a residence permit and request the fiscal identification number from the Immigration and Borders Service. Our agents can help you with these arrangements.

Indian nationals in Portugal

Portugal is a country that offers numerous opportunities to foreign nationals, whether it is for employment purposes or as a location that allows easier access to other European countries and markets. The quality of life is a strong factor for many immigrants and the climate, with warm summers and mild winters are also convenient for many. Indians will also find that they have access to quality education in Portugal and the general living costs are relatively low when compared to other EU countries. 

According to a report from the Foreigners and Borders Service, the following data applied to Indian nationals living in Portugal:

• there was a strong growth in the Indian population numbers in 2018, 127.3%. 
• also in 2018, there was a 10% increase of applications from Indian nationals through the automatic pre-scheduling residence permit program (the expression of the interest to apply for a residency permit for subordinate or independent professional activities).
• 3,618 Indians have used the platform that facilitates contact between foreign citizens and the SEF service.

Indians who wish to arrive in Portugal and comply with the lawful staying requirements can reach out to our immigration specialists. We can provide the needed information pre-arrival so as immigrants can avoid any disagreeable situations once they arrive in the Portuguese city of choice.

Contact us for more information on the requirements for moving to Portugal as well as complete assistance pre and post arrival.

Foreign investors in Portugal who want to set up companies in this country need to respect the legislation in this sense. The Company Act stipulates the rules and regulations for company formation, the types of companies and the activities these can register in Portugal. For a better understanding of how companies can be formed in Portugal in agreement with the applicable laws, we invite you to get in touch with our team of company formation agents in Portugal.

What companies fall under the provisions of the Company Act in Portugal?

The Company Act in Portugal is based on the Portuguese Commercial Code, Decree-Law 262/86 released on September 2^nd, 1986. All companies in Portugal fall under the regulations of the above-mentioned law. It is needless to say that for companies with the head office in Portugal, the rules apply according to Company Act, while companies that activate in Portugal, but have their head office abroad, are only subject to Company Law after one year of commercial activity.

The Company Act in Portugal mentions several types of companies. Private limited companies, public companies, general and limited partnerships, as well as companies with a single shareholder, each of them with the specific requirements and regulations regarding structure and organization.

How can companies perform activities in Portugal?

Companies from abroad which want to settle their operations in Portugal for more than one year need to have permanent establishments in this country and respect the regulations of the Company Act. These firms need to be represented by an appointed agent with residency in Portugal.

What stands at the base of company formation in Portugal?

The Articles of Association are the company’s main documents which contain information about the name of the business, the type of firm, the activities, the purposes, the business address, the liabilities of the partners involved and details about the capital contribution of each member. Also, the Articles of Association need to contain information about how such firm can be closed. 

What is the duration of a company in accordance with the Company Act in Portugal?

Any type of company with establishments in Portugal has an indefinite duration if there are no mentions regarding the company liquidation at a certain time. If the Articles of Association comprise information about the fixed duration of the firm, then a resolution in this sense will be signed by partners before the termination date. We are at your disposal with complete support for company incorporation in Portugal.

Provisions regarding the employment procedures in Portugal

The Company Act in Portugal goes hand in hand with the Labour Law. The Labour Code amended by the Law 7/2009 is responsible for every aspect regarding employment issues. It is mandatory to write and sign an employment contract only for determined period contracts. Responsibilities and rights are mentioned in the Labour Code for both employers and employees, as well as certain specifications on their professional relationship. Foreign employees in Portugal must obtain a work permit and afterward, they have the same rights as Portuguese nationals.

All entrepreneurs who set up a company in Portugal must be aware of the regulations of the Company Act in Portugal, even foreign investors. This way, it will be easier to observe the rules and keep the company’s activities legal.

For more details regarding the Company Act, please feel free to contact our company formation specialists in Portugal.

Portugal is the oldest country in Europe, being recognized as a kingdom since 1139. It became a republic in 1910 and it was known as a powerful maritime country, offering easy entrance for those who were in charge of trading businesses. If you want to open a company in Portugal we invite you to solicit help and guidance from our Portuguese company formation specialists. Moreover, the company registration procedure in Portugal can be easy and ready in time if you provide the necessary documents to the authorities in charge.

Why choose Portugal for business?

Opening a company in Portugal and carrying on businesses can be done in a fast manner, as the authorities have encouraged the foreign investments with the help of several and important incentives. When deciding to relocate to Portugal for small business purposes, it is advisable to analyze the market and the major industries you wish to start your activities in. For instance, Portugal is known for its genuine local goods which are extremely competitive outside the country.

The agriculture, food industry, tourism, wine field are key sectors in Portugal, where numerous entrepreneurs choose to set up their activities. Besides that, you can also direct your attention to the online business opportunities. Financial benefits come with businesses like web design, online marketing, or social media activities, small businesses which can easily generate money. Many entrepreneurs are interested in opening fast foods or restaurants with local or international cuisine in the major cities like Lisbon, Porto, Setubal or Figueira da Foz where tourism is well- developed. The small companies in Portugal are the proper start in most domains for entrepreneurs who want to benefit from the opportunities of an attractive country.

How to open a company in Portugal

A local or a foreign entrepreneur who wants to establish his presence on the Portuguese market can choose from several business entities like the limited liability company, sole proprietorship, limited partnership or a cooperative. We remind that if you want to register a company in Portugal, it is best to seek advice and guidance from our experts in company formation in Portugal. You should consider the following steps when registering a company in Portugal with the Conservatorias de Registo Comercial:

•    choose a name for your small company;

•    draft the Articles of Association;

•    set up a bank account;

•    register for VAT and other social contributions;

•    apply for the proper business license.

Shelf companies in Portugal

An entrepreneur in Portugal might be interested in purchasing a ready-made company instead of creating one from scratch. This is often the proper solution for those wanting to skip the formalities of a company incorporation even though these are simple and subject to less bureaucracy. A shelf company or a ready-made company is already registered and kept on a shelf to age until someone is interested in purchasing it. You might want to direct your attention to a shelf company if you want to start a small business in Portugal as soon as you decide for operations in this country.

What is the Portuguese Trade Register?

Companies in Portugal, regardless of the structure, are registered with the Portuguese Trade Register or the National Registry of Companies as it is known. The institution accepts the incorporation of a firm by an appointed representative and a power of attorney, as long as the requirements for opening a company are entirely respected. The Articles of Association are the necessary documents accepted by the National Registry of Companies in Portugal at the time you wish to open a firm. Moreover, the same authority offers the possibility of registering the business on the internet through the official website of the Trade Register if all the conditions in matters of documents are fulfilled. Having a clear idea about the business requirements in Portugal is necessary to all investors, domestic or from overseas. This is the case in which we recommend you the support of our company incorporation consultants in Portugal.

How can a company register with the Portuguese Trade Register?

Company registration in Portugal can be performed in two different ways. Before starting the procedure, it is important the company’s name to be verified in the database of the National Registry of Companies or Registo Nacional de Pessoas Colectivas. This institution will issue a validation certificate or admissibility, after the name of the company is registered. The same office should also provide a provisional company identity card. You might want to observe the following requirements for registering a company in Portugal:

• • the company registration in Portugal can be done at any registry office or at the Business Formalities Centre;
• • the company registration in Portugal is relevant for the Portuguese Trade Register or Commercial Registry; 
• • the registration procedure can be operated by a shareholder or a legal representative appointed by power of attorney; 
• • the necessary documents for company registration in Portugal are the deed of incorporation and the validation certificate.

The second way for registering a company in Portugal is through a procedure called “empresa online”, where the registration is completed on the Internet. This type of company registration in Portugal is approved and regulated by the National Registry of Companies and can take one or two days, depending on the types of article of association.

What are the necessary documents for company formation in Portugal?

When the company is set up by a legal person, there must be submitted a few documents and if you need assistance in this sense you can talk to our Portuguese lawyers. After you pay the charges provided by the law, the articles of incorporation will be prepared and the registration form will be submitted to the Commercial Register. The members will receive an immediate certificate of association, the access code for a permanent certificate of commercial registration, the electronic access code, the enterprise card and the social enterprise security number. The declaration of commencement of activity must be submitted in term of 15 days to the Financial Services Office and this document must be signed by a chartered accountant.

Within five working days after the constitution, the members are required to deposit the amount of capital (when held in cash) in an account opened on behalf of the newly formed company.

Hiring employees in Portugal

After you set up your company and you want to hire employees, you must pay special attention to the law’s provisions in this field, as the relation between the employer and the employee is overseen by the Portuguese Labor Code in which sets the rules on wages, treaties, benefits, working days and other essential issues. You may choose to hire an employee in Portugal for a fixed period or for a temporary period.  For temporary period contracts, the minimum time cannot be less than six months and when you renew the temporary contract several times it automatically turns into a permanent employment contract. The law establishes a minimum salary and this income is charged with taxes for both parties, for, example the social security contribution and taxes for the pension fund. The probation periods are also paid and there are probations that can last between 30 and 90 days. In Portugal, the average working time is 40 hours per week, which means eight hours per day for five days. However, during the eight hour work, the employees have several breaks. Investors who wish to open a business can explore the existing opportunities for starting a new company or franchising in some of the top business sectors.

Changing the company structure – is it a hard process?

No, changing the company structure is not complex in Portugal, and entrepreneurs can easily transform the sole trader into a limited liability company. However, there are few requirements to pay attention to if you want to change a sole proprietorship (EIRL) into an LDA:

1. The minimum share capital needs to be deposited for opening an LDA in Portugal.
2. A new name for the business (if the owner wants so) and the registration for other tax liabilities are the next step in changing the structure.
3. If the company will have employees, the registration for social contribution is needed.
4. The company secretary and the representative will have to be appointed.
5. The new firm will need a company stamp.

Regardless of the business structure you want to change, the legal aspects will have to be explained by a team of lawyers in Portugal, in order to align with the requirements in this matter. You can also ask for legal advice for EORI registration in Portugal.

What you need to know about the Company Act in Portugal

Based on the Portuguese Commercial Code in Portugal, the Company Act is an important set of laws that comprises information about the types of companies available for business in Portugal, the activities they can develop, the specific legislation for investors from abroad, plus the conditions in which a company can be registered in Portugal. The Company Law in Portugal provides information about the Articles of Association, the company’s main documents, the rights and responsibilities of the company owners and also details about how the company liquidation is made in Portugal. It is good to know that the Company Law in Portugal observes the Labor Code and therefore, the terms and conditions for the employment contract, the rights, and responsibilities of employees in this country, whether they are locals or foreign citizens. 

Knowing how the business runs in Portugal, in agreement with the applicable legislation, will in many cases make the foreign investor decide on the proper type of structure, in agreement with his/her activities. Do not hesitate to address your inquiries to our consultants if you are interested in establishing a company in Portugal.

How can I have access to the Portuguese Trade Register?

The Portuguese Trade Register is open to public access, especially after the information on companies is published in the official journal or on the website. Anyone who wants to find out details about certain organizations can request to search for details in the Trade Register or go online and find the desired data.

How can I open an LDA in Portugal?

A private limited company, or an LDA, as it is known in Portugal, can be registered by foreign investors in compliance with the requirements of the Company Registry in Portugal. As soon as the Articles of Association of the company are accepted by this institution, your company will receive a certification of registration which is necessary for the following stages of the company formation, like registering for VAT, for social contributions and for applying for the company seal. We remind that it is the most popular business structure which can be established with a minimum share capital of EUR 5,000.

Company verification with the Company Registry in Portugal

Before opening a company in Portugal, it is suggested to make a verification for the chosen name, in order to see if another company is registered with such a name or not. The Company Registry in Portugal allows business persons to make a verification in this sense, with a specific form provided by the institution. Also, if you would like to know information about a particular company and information about its shareholders, the capital contribution, the profits, and losses, you can make a verification in this sense with the Company Registry in Portugal and for a specific fee.

Company types in Portugal

Foreigners wanting to open companies in Portugal should solicit information about the available types of structure, in order to decide for the proper business form. Limited liability companies, public and private companies, general and limited partnerships, and sole proprietorships are the types of structures which can be registered by entrepreneurs from abroad who want to expand their businesses in Portugal. Each structure is subject to different requirements, but in most cases, the legislation imposed observes the European directives, plus the local requirements.

LDA, the proper business form for foreigners

Investors from abroad looking to incorporate a business in Portugal can choose the LDA or the private limited liability company, the preferred business structure available. The simple registration formalities plus the opportunity of establishing any kind of activities are a few of the benefits of an LDA in Portugal. With EUR 5,000 as the minimum share capital, a local bank account, a local business address, a shareholder which can also be the director, your LDA in Portugal can be easily registered and ready for business within a few days. You might want to observe the tax benefits linked to an LDA, among which we remind the double tax treaties that protect revenues from the double taxation.

The characteristics of a sole trader

The sole proprietorship is a business developed by a single individual who can perform an activity in sectors such as commercial, industrial or agricultural services. The legal forms for establishing a business for a single investor are a sole proprietorship, a single shareholder in a limited liability company or an individual limited liability establishment. In a sole proprietorship, there is no separation between the personal assets and those assigned to the company, as the individual entrepreneur responds for the debts contracted in the exercise of the business activity towards its creditors, on all goods that comprise the assets.

The sole proprietorship is the type of business that doesn't require to have a minimum capital to start the activities. Also, there is no need for an individual entrepreneur to have a social contract. The sole trader must adopt a firm name (trade name of merchant) made up of his civil name, full or abbreviated, but he may add a nickname by which he is most known in the business world and even the reference to the business and can never take more than one signature.

What are the characteristics of the partnership?

Another form of business is the partnership, which consists of several partners that contribute to the business’ responsibilities as provided in the agreement signed at the constitution moment.

There are several forms of partnerships, for example:

• - the general partnership;
• - the limited partnership;
• - the partnership limited by shares.

In the partnership, the partners have unlimited responsibilities in relation to society’s assets and before the company's creditors. The company must be composed of a minimum of two partners who sign a social pact for the allocation process of profits and losses.

The limited partnership must be composed of a minimum of two shareholders fully responsible for the company’s debts and legal compliance and other shareholders with limited responsibilities. Each of the limited partners is liable only for its entry, while the general partners are liable for the debts of the company. It is a mixed liability company because it gathers limited partners, who contribute to the share capital and partners with unlimited liability who contribute with goods or services, assuming the management of the company.

The consortium consists of the contracts by which two or more persons are obliged to undertake a certain activity or make a certain contribution for the purpose of pursuing any of the objectives set by law. Where the Consortium is considered as external, for example when the activities are directly provided to third parties by the Consortium, one of the members shall be appointed as head of the consortium and must assume the duties of this position, including representation authority.

Obtaining guidance in tax matters from our advisors and getting rid of the bureaucratic procedures in Portugal will help you start your business in a fast manner. Contact our team of company formation agents in Portugal if you want to start a small business in the country.

Lisbon is the capital of Portugal and an appealing business center for numerous foreign investors looking for a suitable business climate and competitiveness. The finance, the tourism, and the trading sectors make Lisbon a city recognized as an alpha-level global city according to the Globalization and World Cities Study Group, and furthermore, a representative and attractive destination among the ones suitable for high standard living. If you want to place your operations in Lisbon and benefit from a multitude of advantages as a foreign investor, we suggest you address to our company formation agents in Portugal.

Establishing a company in Lisbon

Foreigners should first of all explore and identify the proper business entity necessary for their future activities in Lisbon. According to the Company Act in Portugal, the following types of companies are available for registration and for doing business:

• private limited company;

• public company;

• limited partnership;

• general partnership;

• company with a single shareholder.

Most operations in Portugal and particularly in Lisbon are made through a private limited company (sociedade por quotas – LDA) which can be registered if EUR 5,000 are provided as a minimum share capital in a Portuguese bank account. This type of business offers liability to owners only on their capital contribution in the company. Among the conditions imposed for an LDA in Portugal, we mention the following:

• it can be set up by at least two shareholders;

• there is no need for a board of managers;

• a managing director can be appointed by the owners;

• a legal representative with residency in Portugal can act on behalf of the company;

• the name of the company must contain the letters LDA at the end of it.

We remind foreign investors that they can talk to one of our company incorporation specialists in Portugal if they are looking for a legal representative for their new company in Lisbon.

Economic facts for Lisbon

Lisbon is the largest city and the capital of Portugal, an appreciated destination for business due to a reliable economy and solid efforts made by the government which sustains the foreign investments in any industry. Lisbon has important exits to the Atlantic Ocean which ease the connections for trading purposes with several countries worldwide, as it is part of the Luso-Afro-Americo-Asiatic Capital Cities Union. Its cultural inheritance and the rich history attracts numerous tourists each year, making Lisbon an important engine for the overall economy. The agriculture, the transportation, and the import & export activities are extremely developed in Lisbon, placing the city among preferred destinations for multinational companies willing to expand in this area of Europe.

What company formation services we can offer in Lisbon

Even if the company formation in Portugal is an easy process, subject to fewer formalities, it is best to address all your inquiries to our team of advisors who can offer assistance in any company matters. In this sense, please observe the following company services we can provide for you in Lisbon:

• support in preparing the company’s documents;

• assistance with the local Trade Register;

• company management;

• tax advice;

• obtaining special licenses and permits;

• drafting contracts;

• professional translation services;

• virtual office services.

Foreign investors who want to set up companies in Lisbon can contact our company formation representatives in Portugal for complete assistance.

If you are interested in enlarging your operations in the Iberian Peninsula and particularly in Portugal, the city of Porto might represent a proper destination. With important exits to the Atlantic Ocean, a favorable climate for agriculture, and located alongside the Douro River, Porto is a representative city in Portugal and part of the UNESCO World Heritage Site. These attributes and the economic stability make Porto a significant business center in Portugal. If you want to make investments in Porto and you want a starting point, we suggest you address to our company formation agents in Portugal for complete assistance and guidelines.

Opening a company in Porto

Entrepreneurs in Porto have several options for company formation and those are the private limited company, the public company, the limited partnership, the general partnership, and the company with a single shareholder, the latter one observing business persons who want to operate as single shareholders. The private limited company or Sociedade for Quotas – LDA is the popular business structure in Porto which can be set up by at least two shareholders and a minimum share capital of EUR 5,000. The following documents and information are necessary at the time of incorporation of your company in Porto:

•    the Articles of Association;

•    information about the business address, the owners, and their nationality;

•    an appointed representative;

•    bank statements providing the minimum share capital;

•    the identification number for tax purposes in Portugal.

One should bear in mind that the name of the company must contain the letters LDA at the end of it, and furthermore, it is recommended to make a name verification with the local Trade Register in Porto.

Company formation services we can provide in Porto

Because Porto is an appealing business destination, many foreign investors decide to test the market and open companies in the city’s well-developed sectors. To ease the company formation process in Portugal, including in Porto, our company incorporation specialists in Portugal come to your attention with complete support in the following matters:

•    preparing and submitting the company’s documents;

•    providing professional translation services on request;

•    company management;

•    tax advice;

•    tax planning;

•    accounting services;

•    special permits and licenses;

•    wealth management;

•    virtual office services.

Moreover, if it is the case, our team can offer assistance for company restructuring or company liquidation.

Summary of the economy in Porto

Porto is known particularly for its special wines recognized worldwide. The proper climate stands at the base of the winery industry which was highly developed by the British way back in the 18th century, a tradition that continues to prosper considering the profits registered each year. Porto is also a stable financial hub, aligning with major players on the stock exchanges like Amsterdam, Paris, or Brussels, through the “Bolsa de Valores de Lisboa e Porto” (Lisbon and Porto Stock Exchange). The tourism in Porto represents another important source of income in Portugal and a sector in which many entrepreneurs successfully perform their operations.

If you consider Porto a suitable city for your future businesses, please feel free to contact our team of company incorporation consultants in Portugal for assistance in company formation.

Foreign entrepreneurs can establish their business presence in Amadora, an important financial hub in Portugal. Limited liability companies, partnerships, joint stock companies or sole proprietorships are the main business entities which can be registered in Amadora with complete support offered by our team of company formation agents in Portugal. Our team of advisors is at your disposal with comprehensive information in this sense, no matter the business entity you choose for establishing the activities in Amadora.

The company formation services we can provide you in Amadora

Whether you would like to act as a sole proprietorship or develop a large business, it is mandatory to ask for information and guidance from our team of advisors who can help you pass the language barrier and the registration formalities. In this sense, we can offer you support in the following matters:

•    preparing the Articles of Association;

•    filling the forms with the Trade Register;

•    appointing a representative for your firm (we can act on behalf of your company on request);

•    support when applying for tax purposes;

•    accounting services on request;

•    tax advice;

•    business consultancy;

•    company management;

•    applying for special licenses and permits;

•    drafting contracts and establish the negotiations with local partners.

Please bear in mind that we can handle debt collection or company liquidation with complete support offered by our local legal advisors at any time. The company formation in Portugal observed great improvements in recent years, and entrepreneurs can rapidly open their companies in Amadora, as the bureaucratic process is subject to fewer formalities.

Economy facts about Amadora

There are numerous foreign corporations with operations in Amadora and particularly in the city’s industrial zones which highly developed in the past decade. The economy of Amadora is sustained by the flourishing tourism sector, the real estate domain, the energy field, the financial services and the proactive technology field which is strongly appreciated. As for workforce available in Amadora, foreign investors can rely on the highly educated and skilled labor force in most of the important domains.

If you want to benefit from our company formation services in Amadora, we suggest you contact our team of company formation specialists in Portugal for in-depth information and guidelines.

Braga is a multicultural and historical city in Portugal, but also a solid and appreciated business hub among entrepreneurs who already have established activities in this city. Our company formation agents in Portugal can offer complete services for foreigners who want to register a business in Braga. Please feel free to get in touch with our team of advisors if you intend to open a company in Portugal and you need help with the formalities and authorities in charge of business registration.

Types of companies you can open in Braga

The prolific business sectors in Braga are open for all investors who want to set up their operations. Limited liability companies, joint stock companies, general & limited partnerships and sole proprietorships are among popular business forms chosen by foreigners in Portugal. A limited liability company in Braga can be established with a minimum share capital of EUR 5,000. As for a public company incorporation, this can be set up with a minimum share capital of EUR 50,000. We mention that the company registration starts with drafting the documents at the Business Registry through the local offices in Braga. If you would like to incorporate your business in Braga, we can help you with the following matters:

• support with the authorities in charge of registration;

• guidance when applying for special licenses and permits;

• help when registering for tax purposes;

• accounting services on request;

• tax advice;

• business management;

• virtual office services;

• wealth management.

We are at your disposal with support and recommendations in order for investors to rapidly enter the Portuguese business market.

Facts about the economy in Braga

Braga has an interesting history behind and represents a cultural point of attraction which is why the tourism sector is well-developed. The economy of Braga is also sustained by strong and competitive industries like metallurgy, IT, energy, manufacturing, and engineering. Many investors choose Braga for business considering not only the opportunities but also the well-made infrastructure, the transportation (air, sea, land) and the workforce.

For a better understanding of how companies can be established in Braga, please do not hesitate to contact our team of company incorporation specialists in Portugal.

A good accounting is a vital organizational element for any successful business. It helps you hold the record of transactions, to manage your documents, and to develop your company. All the accounting services give an entrepreneur the basis for the analysis of the business trajectory and further decisions. Our company formation agents in Portugal can help you register a company in Portugal at any time. Besides that, our advisors can provide you with complete accounting services.

What is covered by accounting services in Portugal?

Since the very beginning, when forming a company in Portugal, you will need as well to keep the record of the profits and losses of the company and to fill several reports annually. This would be only one example, followed by many others, of what an accounting service can do for you. 

The problem of tax planning and compliance is another issue in which you need to use the accounting services in Portugal, for a newly incorporated company. Most of the accounting activities are regular, such as: billing, bank account management and contract management. This constitutes a strong reason for which good accounting services in Portugal are needed, in order to serve in the administration of your business. The professionality of the service is vital and you must choose an accounting service which is transparent and correct. Otherwise, the growth strategies of your recently opened business in Portugal could be delayed or even endangered.

Bookkeeping services

Bookkeeping refers to the verification and control of payable and receivable accounts of a company with activities in Portugal. Besides these, the cash management, banking operations, the issuance of invoices, and effecting payroll are part of essential bookkeeping services. It is important to note that all the financial activities and records of a company in Portugal enter the attention of an accountant, alongside petty cash books, journals, income statements, daybooks, and many more. If you would like to know more about the bookkeeping services we can offer for your company, please do not hesitate to talk to our specialists. Our team of accountants in Portugal is at your disposal from the beginning of your company.

Payroll services in Portugal – What you need to know

Another important aspect of accounting rules and regulations refer to the payroll services. The distribution of electronic payroll records, payroll tax calculations, salary calculation are part of the payroll services. There are numerous companies in Portugal that benefit from the services of an accounting firm. These are externalized services that come with a series of benefits and often the choice of company owners who do not want to create an accounting department. Domestic and foreign entrepreneurs interested in starting a business in Portugal should contact us for complete support and guidance. We can handle the registration process of companies in Portugal and we can also provide complete accounting services.

Do I need tax minimization solutions for my company in Portugal?

Yes, if you would like to cut the amount of taxes in the company, you might be interested in a series of tax minimization tools offered by our accountants in Portugal. For instance, paying the credits in advance might be a suitable option, or creating a charity. Having a retirement plan can also be an excellent option and part of the tax minimization solutions for your firm in Portugal. Our experts will attentively analyze the financial status in the firm and then propose a few tax minimization tools, suitable for your business. We are at your disposal if you need help in this direction.

FAQ about accounting in Portugal

1. Should I choose externalized accounting services in Portugal?

Yes, hiring an accounting firm for your company in Portugal is a great option if you are looking for professional and transparent services. All the financial aspects of the firm can be properly and correctly handled by a team of experienced accountants in Portugal. 

2. Can I receive payroll and bookkeeping services for my company in Portugal?

Yes, payroll and bookkeeping services are important aspects part of general accounting matters. We mention that our team of accountants in Portugal respect the local and general accounting rules.

3. Can I get help with tax registration and compliance in Portugal?

Yes, our team of advisors can help you register the company for tax purposes in Portugal. Then, all the tax calculations and related aspects will enter the attention of our consultants with experience in this important area.

4. Are annual financial statements important?

Yes, the annual financial statements must be submitted to the entitled authorities in charge of company verification in this sector. Such documents are extremely important and comprise all the financial information of your firm in Portugal.

5. How do I choose an experienced accountant in Portugal?

An experienced accountant in Portugal needs to be a Certified Public Accountant, and such information is normally provided by the Portuguese Chartered Accountants Association (OCC) that has more than 69,000 members, among which, our advisors too. OCC is part of prestigious local and international associations and agencies in the accounting field.

What to consider when choosing the accounting services in Portugal

First check the testimonials of the accountant’s clients that you want to work with. Further on you can check at the relevant institutions whether your accountant is chartered or certified. It is also a central aspect to look for an accountant that is proactive, who keeps you informed on the changes in legislation which are important for your business. A good accounting service will also use good accounting computer programs, for more efficient bookkeeping and tax planning.

Making investments in Portugal

Without any questions, Portugal is a great business choice for local and international entrepreneurs who want to generate money in this part of Europe. With great port openings to the Atlantic Ocean for business and commercial affairs, Portugal is quite interested in the eyes of entrepreneurs of any kind. We have gathered some facts and figures about the economy in Portugal that you might find it useful:

• • the latest figures show that the total FDI stock for 2019 in Portugal was of around USD 161,6 billion;
• • the 2020 Doing Business report issued by the World Bank ranks Portugal 39th out of 190 economies in the world;
• • Luxembourg, Spain, UK, and the Netherlands are the main investors in Portugal;
• • about 6,100 new jobs were created in 2018 in Portugal, due to a series of FDI business projects.

Our experts in company formation in Portugal are willing to help you choose the most suitable accounting services for your business taking into consideration the number of your employees and the specific requirements of your company, so don’t hesitate to contact us.

The Value Added Tax (VAT) is a type of indirect tax levied in Portugal on the supply of goods and services. Implementing this tax is based on several EU directives, and Portuguese companies must comply with the taxation regulations enforced in the country. Both a standard rate and a reduced VAT rate are applicable in Portugal. Foreign investors interested in doing business in one of Portugal’s most significant cities can request the services of a law firm in Portugal and those provided by local tax experts.

The VAT rate in Portugal

The value-added tax is imposed on providing services, goods and imports. A standard rate of 23% applies, with an intermediate rate of 13% and a reduced rate of 6%. Different rates apply in the autonomous regions of Portugal: 22%, 12% and a lower rate of 5% in Madeira and rates of 18%, 9% and 4% in the Azores.

Service providers and suppliers are required to register for VAT purposes in Portugal. Monthly returns are required when the annual turnover exceeds a certain amount, and the VAT returns have a filing deadline. Monthly and quarterly VAT returns are applicable in Portugal.

Certain VAT refunds may apply for non-resident companies providing services in the country but cannot register for a Portuguese VAT number. You can talk to an expert in tax laws, like one of our lawyers in Portugal, to learn more about the requirements for foreign companies operating in the country.

How do I register for VAT in Portugal?

The registration for VAT in Portugal is not subject to a specific threshold. It is imposed on companies having import and export activities, supplying and installing services, organizing live events, selling goods to EU countries, internet retailing and many more. The company’s documents are needed for  VAT registration in Portugal, and the entire process takes around 14 days, depending on the entitled authorities and if the documents are correctly drafted. It is essential to know that non-EU companies must have a VAT fiscal representative in charge of tax registration. Such a condition does not apply to companies with establishments and origins in EU countries. The legal aspects of VAT registration in Portugal can be explained by one of our Portuguese lawyers, who can also assist investors in setting up their companies in Portugal.

Some companies are not registered for VAT in Portugal, but in this situation, such companies sell and deliver products from another member state to clients and firms. If the value of these sales surpasses a threshold of EUR 35,000, it is compulsory to register for VAT in Portugal. Ensure you understand all the conditions of VAT registration in Portugal and request professional help from our lawyers in Portugal. Also, the following example regards  VAT registration in Portugal:

• companies selling products to EU countries from Portugal must register for VAT;
• the import of products into Portugal is subject to VAT;
• internet retailing or online product sales of companies with establishments in Portugal must register for VAT;
• companies that organise conferences, events or anything related have the obligation of registering the firm for VAT;
• companies that deal with supply and install services for over a year are subject to VAT.

VAT returns in Portugal

Companies subject to VAT in Portugal must submit regular returns with information about the taxable sales and costs. If the turnover equals or exceeds EUR 650,000, the VAT returns are offered monthly, as stated by the VAT Directive and Articles 170-171. Some companies might need to submit the Portuguese Intrastat return, a document comprising additional statistical information. Non-EU companies presenting VAT refunds must offer details of each invoice connected to VAT, the summary of the refund request and claimant details. Our lawyers in Portugal can provide extra information on this matter and all the legal aspects.

Who must register for VAT in Portugal?

Any company from abroad looking for a business in Portugal must register for VAT as soon as the firm is incorporated. This isn’t a complex process, but instead of facing problems with the authorities, it is best to have the support of a local team of lawyers in Portugal. Companies dealing with trading activities, supply, installation, events and warehouse owners must pay attention to a VAT registration in Portugal. If you are looking for support in terms of VAT registration, you can rely on the assistance offered by our team of advisors.

VAT implementation in Portugal

Portugal implemented the VAT in 1986 as an alternative to the transaction tax code imposed for goods and services meant for sale purposes. This tax was also applied in Madeira and Azores, the autonomous regions of Portugal. All the EU directives regarding the VAT have been implemented in Portuguese laws since this tax was used in Portugal. The scope of the VAT in Portugal involves varied transactions of companies in this country, and the tax applies to the supplies of goods and services, intra-community acquisitions of goods, the imports of goods, etc. 

Short details about the corporate tax in Portugal

The standard corporate tax rate in Portugal is set at 21% and applies to the profits of the companies established in Portugal, except that small firms are subject to a different tax regime. For example, for the first Eur 15,000 taxable income, a corporate tax rate of 21% applies. It is essential to know the rules referring to the taxation regime in Portugal and to ask for complete legal advice if you intend to start a business in Portugal. In this matter, one of our Portuguese attorneys can stand at your disposal with assistance and legal support. They can also give you information and guidance about the incorporation process of a company, how to register a trademark or how you can obtain the EORI number.

Double tax treaties in Portugal

Avoiding double taxation and fiscal evasion is made with the help of the double taxation agreements signed by Portugal with countries worldwide. Algeria, Barbados, Austria, Brazil, Bulgaria, Belgium, Chile, Canada, Colombia, Cyprus, the Czech Republic, Cuba, China, Cape Verde, Denmark, Estonia, France, Finland, Greece, Hungary, Hong Kong, Iceland, Israel, Ireland, Italy, Guinea-Bissau, Lithuania, Luxembourg, Latvia, Kuwait, Malta, Macau, Morocco, Mozambique, Mexico, Norway, the Netherlands, Pakistan, Panama, Poland, Peru, Russia, Romania, Uruguay, Ukraine, Slovakia, Slovenia, Sweden Singapore, Switzerland, Venezuela, Turkey, and Tunisia are only a few of the countries that signed a double taxation agreement with Portugal. As for the provisions involved, we mention that the incomes are levied only in one of the states that marked such a treaty. Also, a credit applies to revenues assessed in both Portugal and the signatory country. You should talk to one of our specialists and ask for complete information about the taxes you must pay in Portugal and the double taxation agreements signed by this country.  

Registration of a company in Portugal

The limited liability company, or LDA as it is known in Portugal, is this country's most common business structure. Such an entity can be established by at least two partners or shareholders and a minimum capital of EUR 5,000 for a private LDA in Portugal. The minimum share capital of EUR 50,000 is needed for opening a public limited liability company in Portugal. The Articles of Incorporation comprise information about the owners, the company's name, the activities, the company representative's name, the general rules, the date of formation, the voting rights and how a company can be closed. Registration for tax purposes and social contributions is mandatory after the company is registered in Portugal. One of our lawyers in Portugal can give complete assistance and support for foreign investors interested in opening companies in this country, by providing legal advice.

Tax minimisation tools in Portugal

Avoiding the overpayment of fees in a company can be done with the help of a proper tax plan created by an experienced accountant or advisor. In this sense, a tax minimisation tool can be a suitable option, where all the taxes in the firm can be adequately verified. Paying in advance is a valuable tool for those wanting to cut fees by a serious per cent, and that is because creditors can offer different advantages. Some entrepreneurs might be interested in opening charities in Portugal to benefit from several tax deductions. Office supplies, bonuses, and gifts can be used as tax minimisation tools for companies in Portugal. The amount of money saved can be used by business persons for future investments in the company or any other project. It is essential to pay attention to the tax minimisation methods available for your company and solicit the assistance of a specialised consultant in this area.

Why make investments in Portugal

Portugal benefits from an excellent geographic location in Western Europe, having complete connections with all continents regarding business and trading. Import and export companies, tourist agencies, agriculture, fishery, IT, and energy companies are only a few business examples that already thrive in Portugal. International investors have numerous business opportunities in Portugal. They can benefit from an appealing and solid business climate encouraged by the Portuguese government interested in attracting more investments in all sectors of interest and placing FDI as a top priority. The Netherlands, Spain, and Luxembourg are the leading investors in Portugal, and below you can find exciting information and facts about the investment direction in Portugal:

• Around USD 4.9 billion was the FDI flow in Portugal in 2017;
• USD 135.8 billion was the total FDI stock registered in Portugal last year;
• Around 24.6% of the total FDI in Portugal came from the Netherlands;
• the technology-driven investments are sustained by several free trade zones in Portugal;
• the Golden Visa Program in Portugal grants citizenship to entrepreneurs making investments of at least EUR 250,000;
• Portugal ranks 34th out of 190 economies in the world, as stated by the "2019 Doing Business" report by World Bank.

It is needed and recommended to have the legal support of an advisor in a matter of business and taxation.

Taxation in Portugal 

Companies in Portugal are taxed on their profits which include business income, passive income, and any capital gains. Resident companies are taxed on their worldwide profits, whereas non-resident companies are only on their profits derived from the country. The corporate income tax in Portugal is 21%, and a reduced rate applies for the first 15,000 EUR for small and medium-sized companies. Apart from VAT other taxes like e real property tax, the stamp duty, or the transfer tax apply to corporations. A withholding tax on dividends, interest, and royalties also applies. Portugal has more than 60 double tax treaties in force that allow for the avoidance of double taxation in case of companies or individuals that derive income from both a foreign source and a Portuguese one.

For more information about tax laws and various tax provisions, please contact our law firm in Portugal. One of our experts will be able to answer your questions. 

The tax minimization in Portugal is an effective tool adopted by numerous companies with establishments in the country which want to reduce the tax contributions in a legal manner. In this field, the tax minimization is considered a proper and a legal way to maximize the incomes of a company. Our company formation specialists in Portugal can offer support for all interested persons in tax minimization in Portugal and necessary guidance once such financial tool has been adopted.

Tax minimization methods in Portugal

Any company in Portugal needs a suitable tax plan to help them avoid the overpayment of the fees. In this matter, the VAT, the withholding tax, the income and corporate taxes, some of the main fees a company deals with, should be attentively analyzed. Another tax minimization method you can adopt is related to the income tax on salaries of personnel which can be reduced if several social contributions are paid by each employee under a strict convention signed in this matter. The same tax minimization tool can also apply to gifts, bonuses, office supplies or several subscriptions of a company in Portugal. Tax deductions can be obtained once you set up a foundation in Portugal, an important tool considered by many entrepreneurs from abroad. Furthermore, the repatriation of profits can be subject to fiscal optimization, as part of the tax minimization method. It is good to know that each saved money due to a tax minimization procedure can be invested in diverse areas, whether in the company’s different sectors or abroad. 

We remind that the company registration procedure in Portugal is an easy process which can be done within a few days. Complete guidance and information in this matter can be offered by our company formation agents in Portugal. The same team can help you set up a company in Portugal, in respect with the legislation in this country.

Taxes in Portugal – what you need to know

Even though the taxation system in Portugal is complex, it comes with special rights for both citizens or foreigners established in the country. It is good to know that non-residents in Portugal are subject to a 28% tax rate for capital gains and 25% as an income tax. The corporate tax is set at 21% in Portugal and in Azores Island, which is a free trade zone. As for the companies set here, these are subject to a 17.5% corporate tax rate. The tax imposed on interests, capital gains and dividends is set at 28%, but with several exemptions in the real estate sector.

If you are interested in tax minimization for your company, please feel free to contact our team of company formation agents in Portugal. We can also help you set up a company in Portugal.

The favorable tax regime makes Portugal a preferred business destination among the European countries for many foreign entrepreneurs. Our company formation specialists in Portugal can provide information about the taxes a company needs to pay in this country. Also, assistance in company formation in Portugal is at the disposal of foreigners looking to start a business in Portugal.

What is the corporate income tax in Portugal?

The corporate income tax rate in Portugal is set at 21% and it is applicable to the taxable incomes of companies with establishments in Portugal. It is good to know that a reduced corporate income tax of 17% is applicable to businesses in Madeira, the autonomous region, for the first registered revenues of EUR 15,000. A corporate income tax of 16.8% is imposed in the Azores, a Portuguese region that has a special tax regime.

What is the non-habitual residents regime in Portugal?

The non-habitual residents regime or NHR as it is known offers a series of tax advantages for residents in Portugal for the first 10 years. For example, the incomes are levied at a 20% tax rate no matter the amount of the registered revenues. Tax exemptions are applicable to dividends and other investment revenues of foreigners in Portugal. A beneficial tax treatment is provided to individuals who contributed to pension funds in Portugal.

Tax facts in Portugal

The following tax matters should be in the attention of all foreign investors looking to register a company in Portugal. Before that, we remind that our company formation agents in Portugal can help them in setting up a company. Here is important information about the taxation in Portugal:

• • a tax rate of 28% is applicable to capital gains, dividends and interests generated from investments in Portugal;
• • the VAT rate in Portugal is set at 6% for fresh food category, hotel accommodations, and specific health services;
• • the wealth tax was introduced in 2017 and it is set at 1% for owners of properties of more than EUR 1 million;
• • the inheritance tax has a 10% rate and it is not applicable for assets distributed in the family.

You should request complete information about the taxes you need to pay in Portugal from our team of company incorporation representatives in Portugal. Feel free to contact us at any time.

Portugal is one of the most peaceful countries in the world with a high quality of life for its residents. It also has one of the youngest workforces in the world and, in terms of business, operating a company in Portugal does not cost you a ton of money. Investing in Portugal can be one of the best business decisions you will make. Its economy is moving upward with an annual growth rate of approximately 0.8 percent. Company formation in Portugal is also easy. Let one of our company formation agents in Portugal help you decide on why you should invest in Portugal. Before you decide to open a company in Portugal, it would be wise to take a look at some of the important factors that can stand at the base of your investments in Portugal.

Investing in real estate sector

The Golden Visa scheme is perhaps one of the most attractive reasons why you should invest in Portugal. It is a scheme wherein you can acquire residency when you purchase a property in Portugal. This means that company incorporation in Portugal could result to businessmen gaining residency once there is an investment in property, with minimal legal requirements and maximum benefits. With a minimum investment of €250,000.00 on property, you can already reap the benefits of this scheme.

Being part of the European Union

Portugal’s membership with the European Union is another important factor to consider if you want to set up a company in Portugal. Membership of the European Union means common currency and free movement and trade within all member states. Portugal is one of the leading members in the European Union in terms of providing services, biotechnology and information technology.

Foreign investment incentives

Foreign investments are one of Portugal’s top priorities. The government considers them as one of the most important factors in bringing about economic growth. This is the reason why its government has imposed lesser restrictions on its foreign investments as compared to other countries. It allows foreign investments in all activities under the private sector. If you plan to engage in governmental activities, all you have to do is to secure an approval from the government. This is just another reason why you should invest in Portugal.

Knowledgeable workforce  

In Portugal you will find a workforce that is young, brilliant and energetic. The Portuguese universities have seen the highest enrollment rate in recent years and they are expected to produce qualified graduates in upcoming years. Its universities have also partnered with schools like MIT in order to boost student knowledge in science and technology. Once you open a company in Portugal, you can be assured to have quality employees at your disposal.

Is it hard to open a company in Portugal?

No, the lack of complexities in terms of company formation in Portugal is appealing to international investors of any kind. They can easily set up limited liability companies, joint-stock companies, private and public partnerships or sole proprietorships in Portugal. The private LDA is the private limited liability company, the most common and used business structure in Portugal, and the main choice of foreign investors who are interested in a fast and reliable start on the market. The registration of a Portuguese LDA is not complicated, but it is important to pay attention to the conditions involved, like depositing the minimum share capital of EUR 5,000 in a local bank account or submitting the Articles of Incorporation with information about the owners, their nationality, the business activities, the representatives, the general rules, etc. The support of our company formation agents in Portugal will prove extremely helpful to foreign investors found for the first time with business intentions in Portugal.

Legislation related to foreign investments in Portugal 

The foreign investments made in Portugal are overseen by the Agency for Foreign Investment and Commerce in Portugal, an important institution that activates under the rules of the Investment Law. The legislation related to foreign investments in Portugal clearly states that both local and foreign entrepreneurs have equal rights on the business market, without any restrictions, except the state-owned affairs in the country. If an investment of at least 10% in a Portuguese company is made, this means that the entrepreneur is considered a foreign direct investor who can enjoy the benefits that come with this status. It is important to know that there is no need for a foreign entrepreneur to have a local partner to open a company in Portugal, as he or she can enjoy complete ownership in the firm, with no restrictions imposed. The legislation related to foreign investments in Portugal also mentions the taxation regime applicable in the same way to local and foreign entrepreneurs in matters of corporate tax, VAT, social contributions, etc. The support of the double taxation treaties signed by Portugal acts in a fair manner with the purpose of avoiding any possible financial risks or fiscal evasion. Being part of the European Union, Portugal aligns with the business conditions and directives imposed for all EU countries with no exception. For a better understanding of the legislation related to foreign investments in Portugal and its applicability, we kindly invite you to talk to one of our company formation agents or lawyers in Portugal.

Interesting business fields for foreign investors

Opening an agricultural business or setting up a construction company can be in the attention of entrepreneurs from abroad in Portugal. Also, investors can decide on opening IT companies, financial firms, casinos, trust companies, publishing businesses, restaurants, travel agencies and other types of businesses that can enjoy success in a proper environment and sustained by the Portuguese government in terms of incentives and encouragements.  

Holding companies might be appealing businesses for international investors looking to enlarge their portfolios and generate extra profits. Such companies benefit from varied tax exemptions that can be extremely attractive to foreigners. If you want to start a company in Portugal and need guidance throughout the entire registration process, you should address your inquiries to our company incorporation agents in Portugal.

Portugal in numbers

According to Trading Economics that gathers all the rating information about countries worldwide, Portugal’s credit rating established by Standard & Poor’s is BBB with a positive outlook. Moody’s set the same rating last year in August, believing that Portugal is on the right path when it comes to economic stability. The following numbers, facts and statistics can give confidence to international investors wanting to start a business in Portugal:

• • Portugal ranks 34th out of 190 economies in the world, as stated by the 2019 Doing Business report;
• • Portugal is considered the second-largest power plant in the world;
• • the total FDI stock recorded in 2018 in Portugal was USD 135,777 million;
• • non-EU investors can obtain Portuguese citizenship for investments of around EUR 250,000 in companies that need to be strengthened.

Portugal is for sure a great business destination for foreign investors, and those interested in this direction can benefit from complete facilities and tailored services from our team of consultants.

Credit rating for Portugal

There are a lot of entities that give sovereign credit ratings that are the credit ratings given to countries and that reflect their political and economic environment. A lot of companies treat these credit ratings as something very significant before deciding to engage in company formation in Portugal. The top three entities that give sovereign credit ratings are: Moody’s, Standard & Poor’s and Fitch. They have given their credit rating for Portugal.

1. Moody’s

They play an important role in the world market. This company has numerous experts and methods at its disposal in order to determine the transparence and integration of the financial market. For Portugal, Moody’s has given a credit rating of Ba1. This means that Portugal has a stable economy and it is not very vulnerable as compared to those with lower credit ratings.

2. Standard & Poor’s

This company has been engaged in business for 150 years and has made it that far because of the quality of service it provides to its clients and the amount of effort, expertise, and accuracy it puts in its ratings. For Portugal, Standard & Poor’s gave a credit rating of BB+, from a previous rating of BB. For businessmen who plan to open a company in Portugal, this means that they can expect a stable economy and economic growth to look forward to in the years to come.

3. Fitch Ratings Inc.

It is one of the few rating companies that has been acknowledged by the United States Securities and Exchange Commission, the entity that has supervision and control over all corporations in the country. It has conducted market research and other financial studies that are very valuable to an investor. Fitch Ratings gave a credit rating for Portugal of BB+.

This means that, despite a few risks, Portugal’s economy is relatively stable with a high chance of improving in the coming years.

Requirements for overseas investors in Portugal

Investors from abroad are invited to discover the numerous possibilities offered by important industries in Portugal, where sectors like energy, IT, communication, agriculture or automotive are among fields where foreign investments are expected. It is good to know that an entrepreneur from abroad can set up a company in Portugal of any kind, without any restrictions in this matter and the same conditions are also applied for local businessmen. The government in Portugal is aware of the importance of the foreign investments in the country, therefore, the legislation is permissive and there are numerous incentives offered in varied areas of interest.

One should know that The Agency for Foreign Investments and Commerce in Portugal is entitled to verify investors with small and medium companies and to guide them for venture capital support and technology transfer to the Institute of Support to Small and Medium Enterprises and Innovation in Portugal. Once you have decided to open a company in Portugal and to start your activities, we suggest you to talk to one of our company formation specialists in Portugal for comprehensive guidance and support.

Regulations regarding the FDI in Portugal 

Overseas businessmen who invest at least 10% in a company in Portugal are considered foreign direct investors and are entitled to make business decisions in that enterprise without any restrictions. We remind that local investors or those from abroad are treated equally regarding foreign direct investment matters and are invited to search the market and to discover the main industries with full potential in Portugal. One should know that special sectors like public telecommunications, water management, maritime and air transport, or defense need particular endorsements from the government regarding the foreign direct investments.

Requirements for financial businesses in Portugal

The National Bank of Portugal oversees the financial activity in the country and issues authorizations for investors wanting to open financial companies.  A particular fact to consider is related to the non-EU investors wanting to open financial firms or to establish a subsidiary in Portugal, where the local Ministry of Finance needs to analyze the impact of such businesses, their efficiency and if they are suitable for the country’s economy among many other aspects.

Conditions for foreign investors in Portugal

Portugal’s economy is mainly service-based. Key sectors include the technology sector, the information, and technology communication sector, the automotive sector, the energy, and biotechnology sectors. 

Foreign investors have the same rights to carry our business and economic activities as local investors. Foreigners can open any type of company in Portugal, however, special authorizations are needed in several sectors. These include the transportation sector, the water management sector or telecommunications. Credit institutions or finance companies in Portugal are subject to authorization from the Bank of Portugal or the Ministry of Finance. 

Our lawyers in Portugal can give you complete details about the laws for foreign investment and the protection of investments. The country has signed a number of double tax treaties and other bilateral agreements. They can also help you register the company for VAT and also obtain the EORI number.

Investment aid in Portugal

The economic environment in Portugal is investor friendly and a series of incentives welcome and encourage entrepreneurs. The national investment authority offers several fiscal measures to encourage investments and employment in areas that are considered economically disadvantaged. Portugal has a foreign free trade zone in Madeira. Tax reductions, tax investment credits, and EU aid funds are available under certain conditions. One of our lawyers in Portugal can give you complete details about the types of investment aid and how you can access them if you want to open a company in Portugal.

Reasons to choose Portugal

A good position in Europe and proximity to some of the most important markets in the EU is Portugal’s first advantage for investors. The country has good trade relations not only with EU countries but also with the United States, Brazil or countries in Africa. 

The workforce in Portugal is highly skilled and the costs for hiring employees are lower compared to other countries. This can be an important advantage to those investors interested in opening a start-up in Portugal. The country has a talented pool of young workers in fields like engineering or business. The country also has a well-developed transport infrastructure and ICT network

The business environment in Portugal is attractive for entrepreneurs in all business fields, and an important advantage is openness towards foreign investors and foreign employees. Moreover, Portugal has a high quality of life and many investors and expats enjoy living in this climate. The advantageous tax structure in Portugal is another reason for foreign investors to choose Portugal for business. You might want to ask for support for VAT registration and for obtaining the EORI number in Portugal.

Attractive investment fields in Portugal

Portugal has many investment opportunities for those who want to start a company. Among those with the highest potential for receiving FDI, we can list the following: tourism, biotechnology, the electric and electronics sectors, the new information and technology sectors, parts of the chemical manufacturing sector and the shared services centers (such as call centers). 

Companies that operate in some of these sectors need special permits and licenses. One of our attorneys in Portugal can help you apply for these and handle any other issues that may arise during the company formation process.
If you need more reasons to invest in Portugal, we have plenty of specialists in incorporating a company in Portugal. We are more than willing to cater to your needs, so all you have to do is to contact us.

Portugal is one of the most peaceful countries in the world with a high quality of life for its residents. It also has one of the youngest workforces in the world and, in terms of business, operating a company in Portugal does not cost you a ton of money. Investing in Portugal can be one of the best business decisions you will make. Its economy is moving upward with an annual growth rate of approximately 0.8 percent. Company formation in Portugal is also easy. Let one of our company formation agents in Portugal help you decide on why you should invest in Portugal. Before you decide to open a company in Portugal, it would be wise to take a look at some of the important factors that can stand at the base of your investments in Portugal.

Investing in real estate sector

The Golden Visa scheme is perhaps one of the most attractive reasons why you should invest in Portugal. It is a scheme wherein you can acquire residency when you purchase a property in Portugal. This means that company incorporation in Portugal could result to businessmen gaining residency once there is an investment in property, with minimal legal requirements and maximum benefits. With a minimum investment of €250,000.00 on property, you can already reap the benefits of this scheme.

Being part of the European Union

Portugal’s membership with the European Union is another important factor to consider if you want to set up a company in Portugal. Membership of the European Union means common currency and free movement and trade within all member states. Portugal is one of the leading members in the European Union in terms of providing services, biotechnology and information technology.

Foreign investment incentives

Foreign investments are one of Portugal’s top priorities. The government considers them as one of the most important factors in bringing about economic growth. This is the reason why its government has imposed lesser restrictions on its foreign investments as compared to other countries. It allows foreign investments in all activities under the private sector. If you plan to engage in governmental activities, all you have to do is to secure an approval from the government. This is just another reason why you should invest in Portugal.

Knowledgeable workforce  

In Portugal you will find a workforce that is young, brilliant and energetic. The Portuguese universities have seen the highest enrollment rate in recent years and they are expected to produce qualified graduates in upcoming years. Its universities have also partnered with schools like MIT in order to boost student knowledge in science and technology. Once you open a company in Portugal, you can be assured to have quality employees at your disposal.

Is it hard to open a company in Portugal?

No, the lack of complexities in terms of company formation in Portugal is appealing to international investors of any kind. They can easily set up limited liability companies, joint-stock companies, private and public partnerships or sole proprietorships in Portugal. The private LDA is the private limited liability company, the most common and used business structure in Portugal, and the main choice of foreign investors who are interested in a fast and reliable start on the market. The registration of a Portuguese LDA is not complicated, but it is important to pay attention to the conditions involved, like depositing the minimum share capital of EUR 5,000 in a local bank account or submitting the Articles of Incorporation with information about the owners, their nationality, the business activities, the representatives, the general rules, etc. The support of our company formation agents in Portugal will prove extremely helpful to foreign investors found for the first time with business intentions in Portugal.

Legislation related to foreign investments in Portugal 

The foreign investments made in Portugal are overseen by the Agency for Foreign Investment and Commerce in Portugal, an important institution that activates under the rules of the Investment Law. The legislation related to foreign investments in Portugal clearly states that both local and foreign entrepreneurs have equal rights on the business market, without any restrictions, except the state-owned affairs in the country. If an investment of at least 10% in a Portuguese company is made, this means that the entrepreneur is considered a foreign direct investor who can enjoy the benefits that come with this status. It is important to know that there is no need for a foreign entrepreneur to have a local partner to open a company in Portugal, as he or she can enjoy complete ownership in the firm, with no restrictions imposed. The legislation related to foreign investments in Portugal also mentions the taxation regime applicable in the same way to local and foreign entrepreneurs in matters of corporate tax, VAT, social contributions, etc. The support of the double taxation treaties signed by Portugal acts in a fair manner with the purpose of avoiding any possible financial risks or fiscal evasion. Being part of the European Union, Portugal aligns with the business conditions and directives imposed for all EU countries with no exception. For a better understanding of the legislation related to foreign investments in Portugal and its applicability, we kindly invite you to talk to one of our company formation agents or lawyers in Portugal.

Interesting business fields for foreign investors

Opening an agricultural business or setting up a construction company can be in the attention of entrepreneurs from abroad in Portugal. Also, investors can decide on opening IT companies, financial firms, casinos, trust companies, publishing businesses, restaurants, travel agencies and other types of businesses that can enjoy success in a proper environment and sustained by the Portuguese government in terms of incentives and encouragements.  

Holding companies might be appealing businesses for international investors looking to enlarge their portfolios and generate extra profits. Such companies benefit from varied tax exemptions that can be extremely attractive to foreigners. If you want to start a company in Portugal and need guidance throughout the entire registration process, you should address your inquiries to our company incorporation agents in Portugal.

Portugal in numbers

According to Trading Economics that gathers all the rating information about countries worldwide, Portugal’s credit rating established by Standard & Poor’s is BBB with a positive outlook. Moody’s set the same rating last year in August, believing that Portugal is on the right path when it comes to economic stability. The following numbers, facts and statistics can give confidence to international investors wanting to start a business in Portugal:

• • Portugal ranks 34th out of 190 economies in the world, as stated by the 2019 Doing Business report;
• • Portugal is considered the second-largest power plant in the world;
• • the total FDI stock recorded in 2018 in Portugal was USD 135,777 million;
• • non-EU investors can obtain Portuguese citizenship for investments of around EUR 250,000 in companies that need to be strengthened.

Portugal is for sure a great business destination for foreign investors, and those interested in this direction can benefit from complete facilities and tailored services from our team of consultants.

Credit rating for Portugal

There are a lot of entities that give sovereign credit ratings that are the credit ratings given to countries and that reflect their political and economic environment. A lot of companies treat these credit ratings as something very significant before deciding to engage in company formation in Portugal. The top three entities that give sovereign credit ratings are: Moody’s, Standard & Poor’s and Fitch. They have given their credit rating for Portugal.

1. Moody’s

They play an important role in the world market. This company has numerous experts and methods at its disposal in order to determine the transparence and integration of the financial market. For Portugal, Moody’s has given a credit rating of Ba1. This means that Portugal has a stable economy and it is not very vulnerable as compared to those with lower credit ratings.

2. Standard & Poor’s

This company has been engaged in business for 150 years and has made it that far because of the quality of service it provides to its clients and the amount of effort, expertise, and accuracy it puts in its ratings. For Portugal, Standard & Poor’s gave a credit rating of BB+, from a previous rating of BB. For businessmen who plan to open a company in Portugal, this means that they can expect a stable economy and economic growth to look forward to in the years to come.

3. Fitch Ratings Inc.

It is one of the few rating companies that has been acknowledged by the United States Securities and Exchange Commission, the entity that has supervision and control over all corporations in the country. It has conducted market research and other financial studies that are very valuable to an investor. Fitch Ratings gave a credit rating for Portugal of BB+.

This means that, despite a few risks, Portugal’s economy is relatively stable with a high chance of improving in the coming years.

Requirements for overseas investors in Portugal

Investors from abroad are invited to discover the numerous possibilities offered by important industries in Portugal, where sectors like energy, IT, communication, agriculture or automotive are among fields where foreign investments are expected. It is good to know that an entrepreneur from abroad can set up a company in Portugal of any kind, without any restrictions in this matter and the same conditions are also applied for local businessmen. The government in Portugal is aware of the importance of the foreign investments in the country, therefore, the legislation is permissive and there are numerous incentives offered in varied areas of interest.

One should know that The Agency for Foreign Investments and Commerce in Portugal is entitled to verify investors with small and medium companies and to guide them for venture capital support and technology transfer to the Institute of Support to Small and Medium Enterprises and Innovation in Portugal. Once you have decided to open a company in Portugal and to start your activities, we suggest you to talk to one of our company formation specialists in Portugal for comprehensive guidance and support.

Regulations regarding the FDI in Portugal 

Overseas businessmen who invest at least 10% in a company in Portugal are considered foreign direct investors and are entitled to make business decisions in that enterprise without any restrictions. We remind that local investors or those from abroad are treated equally regarding foreign direct investment matters and are invited to search the market and to discover the main industries with full potential in Portugal. One should know that special sectors like public telecommunications, water management, maritime and air transport, or defense need particular endorsements from the government regarding the foreign direct investments.

Requirements for financial businesses in Portugal

The National Bank of Portugal oversees the financial activity in the country and issues authorizations for investors wanting to open financial companies.  A particular fact to consider is related to the non-EU investors wanting to open financial firms or to establish a subsidiary in Portugal, where the local Ministry of Finance needs to analyze the impact of such businesses, their efficiency and if they are suitable for the country’s economy among many other aspects.

Conditions for foreign investors in Portugal

Portugal’s economy is mainly service-based. Key sectors include the technology sector, the information, and technology communication sector, the automotive sector, the energy, and biotechnology sectors. 

Foreign investors have the same rights to carry our business and economic activities as local investors. Foreigners can open any type of company in Portugal, however, special authorizations are needed in several sectors. These include the transportation sector, the water management sector or telecommunications. Credit institutions or finance companies in Portugal are subject to authorization from the Bank of Portugal or the Ministry of Finance. 

Our lawyers in Portugal can give you complete details about the laws for foreign investment and the protection of investments. The country has signed a number of double tax treaties and other bilateral agreements. They can also help you register the company for VAT and also obtain the EORI number.

Investment aid in Portugal

The economic environment in Portugal is investor friendly and a series of incentives welcome and encourage entrepreneurs. The national investment authority offers several fiscal measures to encourage investments and employment in areas that are considered economically disadvantaged. Portugal has a foreign free trade zone in Madeira. Tax reductions, tax investment credits, and EU aid funds are available under certain conditions. One of our lawyers in Portugal can give you complete details about the types of investment aid and how you can access them if you want to open a company in Portugal.

Reasons to choose Portugal 

A good position in Europe and proximity to some of the most important markets in the EU is Portugal’s first advantage for investors. The country has good trade relations not only with EU countries but also with the United States, Brazil or countries in Africa. 

The workforce in Portugal is highly skilled and the costs for hiring employees are lower compared to other countries. This can be an important advantage to those investors interested in opening a start-up in Portugal. The country has a talented pool of young workers in fields like engineering or business. The country also has a well-developed transport infrastructure and ICT network

The business environment in Portugal is attractive for entrepreneurs in all business fields, and an important advantage is openness towards foreign investors and foreign employees. Moreover, Portugal has a high quality of life and many investors and expats enjoy living in this climate. The advantageous tax structure in Portugal is another reason for foreign investors to choose Portugal for business. You might want to ask for support for VAT registration and for obtaining the EORI number in Portugal.

Attractive investment fields in Portugal

Portugal has many investment opportunities for those who want to start a company. Among those with the highest potential for receiving FDI, we can list the following: tourism, biotechnology, the electric and electronics sectors, the new information and technology sectors, parts of the chemical manufacturing sector and the shared services centers (such as call centers). 

Companies that operate in some of these sectors need special permits and licenses. One of our attorneys in Portugal can help you apply for these and handle any other issues that may arise during the company formation process.
If you need more reasons to invest in Portugal, we have plenty of specialists in incorporating a company in Portugal. We are more than willing to cater to your needs, so all you have to do is to contact us.

Portugal has a complex economy and the exports are in accordance with the main developed industries, directing the country on the 46th place among countries worldwide. The trading activities in Portugal have a major impact on the economy and comply the international rules and regulations. If you are interested in opening a trading company in Portugal, we remind that our company formation specialists in Portugal can help.

Exports of Portugal

Spain, US, Germany, UK, Italy, the Netherlands, and France are top export destinations of Portugal. Petroleum products, chemicals, cars, leather, food, beverages, and medication are among products which are sent from Portugal to countries from Europe and also from other continents. According to numbers and statistics, about $ 2.25 billion has been registered for the exports of leather footwear and around $ 3 billion represents the refined petroleum exports.

Due to the numerous investment possibilities in the trading sector in Portugal, entrepreneurs choose to set up their import and export activities in the Portuguese market and benefit from numerous advantages. Businessmen interested in opening companies in the import and export sector in Portugal are invited to ask for information and guidance from our company formation agents in Portugal. Furthermore, an entrepreneur can set up a company in Portugal and receive varied advantages among which we mention the company registration in Portugal which is an easy process.

Imports of Portugal

Vehicle parts, textiles, industrial machinery, natural gas, agricultural products, chemical, and plastics are significant products imported from outside Portugal. Countries like Spain, France, Germany, Austria, the Netherlands or China are the main importers for Portugal. We remind that special licenses and permits are necessary if you want to start a business in the trading field in Portugal. Please keep in mind that our advisors can help you open a trading company in Portugal and can explain the entire procedure step by step.

Why open an import and export company in Portugal?

Once you have obtained the special licenses and permits with the support of our team of consultants, you can start your activities in the trading sector in Portugal. The country is an old trading partner of numerous countries worldwide, due to its excellent geographic location with exits at the Atlantic Ocean. The infrastructure is well developed and numerous projects have been adopted in this important sector which will help the trading businesses grow. Furthermore, the economy in Portugal has shown numerous signs of recovery with the help of various reforms in the country’s key industries, including the import and export section.

We remind that if you want to know more details about the legislation related to the trading activities in Portugal and the possibilities of opening a company in this area, you are invited to contact our team of company formation agents in Portugal.

With a great geographic location, infrastructure and logistics among many others, Portugal represents a suitable choice for businessmen who want to expand their activities on the West Coast of Europe and connect with other continents.  As it is known, a successful business will also depend on the quality of the employees, a matter in which Portugal is proud to offer skilled workforce. If you are interested in setting up a company in Portugal and need assistance, you can rely on our company formation specialists in Portugal.

Experienced people for your company in Portugal

Once the company registration in Portugal has been successfully made, it is time to focus on the workforce and the people you can hire for your business. Sectors like healthcare, IT, finance, education, business and administration, and engineering are effective areas where companies have skilled people, suitable prepared, and with a high diploma. Universities from Porto, Lisbon, Braga, Coimbra, or Evora are the most preferred colleges that give all students the possibility of discovering their skills and gaining knowledge in varied areas. It is good to know that more than 100,000 students graduate each year, and the government in the country invests around 100 million to qualify the present workforce and to direct it to another level of qualifications.     

You can rely on the prepared workforce in Portugal and you can ask details about how to hire Portuguese staff for your business if you get in touch with our company incorporation agents in Portugal. We also remind that if you want to open a company in Portugal, proper support and guidance are on request from our advisors.

The reasons to hire the workforce in Portugal

The Portuguese workforce is made of skilled people who can speak English, French, and Spanish. Another aspect you should consider when hiring staff from Portugal is related to the proper adaptability and high motivation of experienced persons willing to fill in the available positions in local or foreign companies. We remind that the company registration procedure in Portugal has been simplified, numerous companies being registered in a short amount of time if the documents are as requested by the authorities or entities in charge. 

For complete details about how to set up a company in Portugal and the workforce available for your business, please feel free to contact our team of company formation agents in Portugal.

The target of business consulting companies in Portugal is to provide the needed support and guidance for entrepreneurs looking to thrive through their businesses in this country. Proposing a series of plans and strategies for future business developments and performances is also on the list of a business consultant in Portugal. We invite you to address to our team of company formation specialists in Portugal and find out more details about the business consulting services we can offer, in agreement to your needs. Also, if you are an entrepreneur from abroad looking to start a business in Portugal and need to know the requirements in this sense, you may talk to our specialists.

Understanding the business needs in Portugal

Most of the entrepreneurs are aware of the fact that a company needs to develop on a daily basis and must operate in an efficient manner aligning with today's business conditions. There are cases in which a good business direction can be recommended by an experienced consultant who can provide support in matters like:

• • varied business solutions can be implemented in the firm once a verification is made;
• • there can be financial solutions provided for optimizing this important sector in the company;
• • future operations can be developed with the idea of aligning the company with the demands on the market;
• • future investments can be proposed for potential profits in the company;
• • capitalizing the opportunities is among the targets of a business consultant in Portugal.

It is good to know that our company formation agents in Portugal can help investors start a business in Portugal and can also act as business consultants on the long term.

Can I receive marketing strategies in the company?

Yes, a business consultant in Portugal has sufficient qualifications to determine the key sectors in your company and to recommend a series of plans and strategies that can lead to extended portfolios and collaborations with international markets in the industry your business activates. It is highly recommended for small entrepreneurs to interact with a business consultant in Portugal and solicit such services for future developments.

Financial plans for your company in Portugal

There are many tax minimization solutions a Portuguese company can receive. A business consultant can provide the needed options for your firm if you would like to cut the costs and direct your profits to a different sector in the firm. The potential of a specific area in the company can be even more exploited with the help of a business consultant who can expose and develop the opportunities.

Implementing IT solutions in your firm

The digital support develops in a very fast manner in Portugal and there are many entrepreneurs who consider that a business can grow with the help of technology and varied operational systems. The dynamic needs in a company are strongly related to the ways in which the technology is developed, in order to provide quality services for domestic and foreign clients. The IT solution may perfectly blend with future marketing strategies that can bring a new direction for your business.

Why you should hire a business consultant in Portugal

A business consultant in Portugal has enough experience and knowledge to be, for a specific period of time, the support in your company. Mixing the theory with practice can offer not only value in the company but also many benefits in a competitive market. The business consultancy services in Portugal may represent the fresh viewpoints a company needs from time to time. It is recommended to work with consultants with a great portfolio and experience with international companies. Another suggestion for domestic and foreign entrepreneurs in Portugal is to welcome the changes in the firm and to let a business consultant grow a series of strategies and plans for future growths and results. There are cases in which your consultant can suggest organizational changes for a complete optimization in the company, even though it might involve hiring or firing staff. It is good to know that a business consultant in Portugal is not a permanent employee and can work with a temporary contract in a cost-efficient manner.

As a short conclusion, business consulting strategies for your company in Portugal may represent, at a certain point, the needed help for a wanted and expected growth in the firm.

We kindly invite you to get in touch with our team of company formation representatives in Portugal and solicit complete assistance and information about how to open a company in Portugal and about the business consulting services we can provide.

The decision of buying shares in a company established in Portugal is often the choice of international investors interested in extending their portfolios for larger profits. In this sense, the stocks in a company can be purchased by other companies or by investors who can join mutual investment funds under certain rules. Many companies in Portugal are available for this kind of transactions, in respect with the international and local laws, but for more details in this sense, you can talk to one of our company formation specialists in Portugal. Our team of consultants is at your disposal if you would like to open a company in Portugal.

Who can buy stocks in a company in Portugal?

Any entrepreneur looking for investment and profit opportunities in Portugal can purchase company stocks straight from a chosen company or with the help of a direct stock purchase plan. It is good to know that a licensed broker in Portugal can help an investor purchase shares in a company in Portugal. Even an investment advisor can offer the needed support for the type of investors looking for portfolio development. Let us tell you that our team of specialists is at your service if you would like to purchase shares in a Portuguese company by providing the necessary assistance and guidance.

The investment plan for buying shares in a company

It is important to know that a business plan is needed at the time you decide on buying company stocks in Portugal. The following matters are involved in an investment plan and can be explained by licensed brokers or advisors in Portugal:

1. An entrepreneur will have to present the investment purposes at the time a plan is concluded.

2. Tax advice and details about the budget are necessary.

3. The financial plan is the starting point when planning a company share purchase in Portugal.

4. Opening an investment fund is the next thing to do.

5. An investment fund can have a single owner or more, depending on the business target.

Let us remind you that our team of consultants is at your disposal if you are interested in purchasing stocks in a company in Portugal. Also, you can address your inquiries to our team if you want to register a company in Portugal.

What is a direct stock purchase plan?

Companies issuing stocks allow any investor to access the shares as individual investors, with the help of a direct stock purchase plan. It is good to know that such a plan is cheaper compared to the one in which a licensed broker is involved, meaning that there is no need to consider any additional fees. The direct stock purchase plan is often the solution of foreign investors interested in acquiring a small number of shares.

Can I access a dividend reinvestment plan in Portugal?

Yes, you can consider a dividend reinvestment plan if you are the owner of a company and would like to have extra business options. In this case, an investor will not receive any dividends from the company and instead will invest in company shares. Reinvesting the issued dividends into extra company stocks is among the business possibilities a foreign entrepreneur can have in Portugal. Let us tell you more about the options you can have when purchasing company shares in Portugal.

Can I purchase shares in more than just one company in Portugal?

Yes, it is advisable to buy stocks in more than just one company in Portugal, if you are the kind of entrepreneur looking for risk-free business. Variety is in most cases the key for successful investments in Portugal, especially if you would like to extend more and create a solid portfolio. Investing on a regular basis and decide on buying company shares are often a great solution for both domestic and foreign businessmen.

Are there any risks when buying company shares?

It is good to bear in mind that there are cases in which investors might be victims of scams, meaning that they are tempted to buy particular shares in a company which it doesn’t exist, even if it has an extremely attractive presentation. Non-existent or overpriced company shares that promise high returns will in most cases lead to money loses. This is why you should ask for professional advice when decided for purchasing shares in a Portuguese company, in order to avoid as much as possible any kind of investment fraud that might appear.

If you are interested in company formation in Portugal or if you would like to know the procedure of acquiring shares in a company, we kindly invite you to get in touch with our team of company incorporation specialists in Portugal for comprehensive information in these matters. You can also solicit a personalized offer at any time.

Investors in Portugal may decide at a certain point to a different method to increase the profits in a company, such as selling shares. This kind of method might be necessary for covering certain debts in the firm, but not limited to these. If you would like to know more about how you can open a company in Portugal and about how you can sell the shares of a Portuguese company, we invite you to talk to our company formation specialists in Portugal.

What are the reasons for selling shares of a company in Portugal?

Paying the debts of a company might solicit a significant step in this process, meaning that the owners can consider selling stocks of a Portuguese company. There are many investors who decide on the following reasons for selling shares in the company, such as:

1. Sometimes, selling shares might be the proper option for charitable donations if it is the case.
2. The personal assets can be diversified if an investor decides to sell a few shares of the company.
3. The ownership transfer or succession might start with the sale of shares of a company in Portugal.
4. If you do not want to develop your business, you can start selling stocks.

What is a partial sale of shares of a company?

A partial sale involves only a portion of the stocks, as decided by the owners of the company in Portugal. The proprietor of the company will have to consider how much they want to sell in order to not transform into a minority investor and not have control in the firm and make decisions. A partial sale of stocks of a company in Portugal can support raising the capital in the firm and even encourage employees in this direction. Moreover, the ownership transition might start with a partial sale of company stocks. Let our company formation agents in Portugal tell you more about how you can sell shares in your company in Portugal. Also, if you would like to open a company in Portugal, feel free to address your inquiries to our team.

What is a complete stocks sale in Portugal?

Selling all shares of a company in Portugal means that the investor decides on ending the participation and the control in such a firm. This is a straightforward process which might be structured in such a way for an entrepreneur to receive annuity payments. This means that you may receive monthly incomes through the annuitization method or choose the life option providing incomes for life. Businessmen might be interested in a specific payment period, choosing to be paid for 10, 15 or 20 years, with the mention that in the case of deceased, the family members receive the payment as established by a contract in this sense.

Deciding on the company share selling option

It is quite important to know what the options are for selling stocks of a company in Portugal, in order to make a business plan in accordance. Here are the main ways through which you can sell shares of a Portuguese company:

• • Going public – a public listing of shares is an expensive option, but a great choice for large companies who want to maximize the value.
• • Selling stocks to private investors – private share sales address to specific type of investors, and it is subject to low costs.
• • Selling stocks to employees – there are many business owners who decide on in-house share sales.
• • Shares for smaller investors – this is a less restrictive method in terms of company rules for selling stocks but complicated in matters of finances.

Selling shares of a Portuguese company is often the decision of foreign investors who want to change the business direction, raise capital in the company or simply looking to retire from a business. All the requirements and procedural formalities can be explained by our team of company formation representatives in Portugal. They can help foreign business persons start companies in Portugal by providing support for entitled authorities.

Asking for support for selling company stocks in Portugal

The lack of experience in business, particularly when deciding on selling company stocks should determine an entrepreneur on asking for support from a specialist. A consultant or a business broker might be the ideal choice for this kind of job, as their purpose is to create and present a solid and real business plan comprising methods through which a company can sell shares. Once the value of the business is determined, an entrepreneur can solicit support for trading stocks on the market. Your consultant can handle the document requirements, can look for a potential buyer and can close a deal in a fast manner and no harsh formalities.

We invite you to contact our team of company incorporation experts in Portugal and solicit information about how to sell shares of a Portuguese company.

Retail funds can be established in Portugal, in respect with the applicable laws and EU directives. UCITS are Undertakings for Collective Investment in Transferable Shares which can be easily established, a matter where our company formation specialists in Portugal can provide support and guidance. The same team can offer assistance for opening all sorts of entities, among which, the limited liability companies in Portugal, joint venture companies, sole proprietorships.

What types of investment funds are available in Portugal?

As mentioned above, UCITS are among the funds which can be established in Portugal and meant for the investments of capital gained from the public. AIFs or Alternative Investment Funds can be opened in Portugal, and are publicly issued real estate investments, in respect with the EU Directive 2011/61. Open-ended and close-ended retail funds are also types of investment funds that can be in the attention of a domestic or foreign entrepreneur.

Details about open-ended retail funds

Open-ended retail funds are available in Portugal and can be created with the support of financial services groups registered in the country. The following information explains how open-ended retail funds work:

• • open-ended funds are useful investment tools that work with customers’ savings;
• • there are many financial institutions in Portugal that deal with open-ended investment funds;
• • the Portuguese Fund Managers Association oversee the activities of funds established in this country;
• • one must have a management company when opening an open-ended fund in Portugal.

If you would like to open a fund in Portugal or if you are interested in company formation in Portugal, you can talk to one of our company formation representatives in Portugal.

Closed-ended retail funds in Portugal

Compared to open-ended retail funds, open-ended funds are not that  chosen by investors and that because the first ones can be easily transferred. This is why the market for closed-ended retail fund is smaller, according to recent statistics. However, if you are interested in such funds, feel free to ask for the support of our consultants.

Rules for establishing funds in Portugal

The regulatory framework for funds in Portugal is straightforward and based on the directives established by important authorities and bodies in EU. The Portuguese Security Code which entered into force in 2000, alongside the Undertakings of Collective Investment Law, plus specific EU regulations are among the laws controlling the funds available in Portugal. The Securities Market Commission or CMVM in Portugal is the main regulatory body of retail funds in this country. This institution authorizes and supervises the funds in Portugal. Above all, the National Bank of Portugal oversees the activities of all financial institutions in this country.

What are the necessary documents for opening a fund in Portugal?

KIID is the Key Investor Information Document which needs to be drafted for opening a fund in Portugal. Also, the prospectus of the fund must comprise complete information about the fund regulation. These documents, alongside papers proving the approval of the activities of the fund by parties involved must be drafted for the authorization of CMVM. It is important to know that it takes around 20 days until the authorization is confirmed, however, there won’t be an announcement made in this sense, if the fund is accepted. In the case of a refusal from the CMVM, investors have the possibility of making a new application and revise the documents.

Can funds be marketed in Portugal?

Yes, funds can be promoted via local newspapers, on media channels and on the internet with the help of specialized websites, but not limited to these. Opening a fund  in Portugal might seem complicated, but the support of our company formation agents in Portugal can prove necessary and mandatory and that because you can skip potential errors at the time of registration.

In matters of investments in Portugal, foreigners have numerous opportunities in most of the fields and can pay attention to a few facts and statistics in this direction:

1. Around USD 4.90 million was the FDI inward flow for Portugal in 2018.
2. Approximately 27% of the total FDI stock in Portugal were directed to the financial and insurance services sector in 2018.
3. Of the total FDI stock registered in Portugal last year, around 19% come from Spain.
4. An investment of around EUR 350,000 grants the Portuguese citizenship.

If you are an investor interested in opening a fund in Portugal, we recommend you contact our company formation specialists in Portugal.

The Visa D2 was developed with the goal of attracting international entrepreneurs who want to invest in Portugal and start small and medium-sized businesses that are economically, technologically, or culturally significant to the country.

Who can use Visa D2?

A D2 Visa may be issued to foreign nationals from countries outside the European Union wishing to pursue an independent professional activity and:

• Have a contract or written proposal for a service contract in the liberal professions;
• Are qualified to exercise the independent activity, whenever applicable.

This may also be granted to enterprising immigrants wishing to invest in Portugal, provided that:

• Have carried out investment operations;
• Proof that they have available financial means in Portugal, including those arising from financing obtained from banks in Portugal, and demonstrate by any means their intention to undertake an investment operation in Portuguese territory;
• Develop an entrepreneurial project, including the creation of an innovative grassroots company integrated in a certified incubator.

If you would like to know more about what types of visas the Portuguese government offers, please visit our website.

The Portugal Golden Visa is a residence visa issued to non-EU nationals who have made a significant investment in Portugal, such as purchasing real estate, making a capital investment, or creating employment opportunities.

It is a fast-track process for obtaining permanent residence and citizenship in an EU country – via the Golden Visa, you can become eligible for Portuguese citizenship in as little as five years.

Portugal Golden Visa Investment Options

To be eligible for a Golden Visa in Portugal, you must make one of the following investments:

• Purchase a property worth at least €500,000. If you purchase in a low-density area, the investment amount is €400,000.
• Invest €350,000 in a property in a Portuguese urban regeneration area. If you invest in a low-density area, the investment amount is €280,000. The project should qualify for investment by the Portuguese Immigration and Borders Service – SEF.
• Invest at least €350,000 in a qualifying Investment Fund. The investment options are regulated by the Portuguese CMVM (Securities Market Commission), and usually include venture capital investment in real estate or start-up tech companies.
• Make a capital transfer of at least €1 million in a Portuguese bank account.
• Purchase company shares worth at least €1 million.
• Invest at least €1 million in a company.
• Create at least ten jobs for Portuguese nationals.
• Invest at least €350,000 for the creation of a commercial company or to reinforce the share capital of a commercial company, through which you create at least five full-time jobs.
• Make a capital transfer of at least €350,000 for research activities in science or technology by either public or private scientific research institutions.
• Make a capital transfer of at least €250,000 to support the arts or reconstruction of national heritage.

Important note: From July 2021, you will not qualify for a Golden Visa if you invest/purchase property in metropolitan or coastal cities such as Lisbon or Agrave, as the Portuguese government is hoping to increase foreign investment in low-density areas of the country.

Who Is Eligible to Apply for a Golden Visa for Portugal?

To be eligible for a Golden Visa for Portugal, you have to fulfil the following requirements:

• You must be over the age of 18
• You must make a significant investment that is beneficial to the Portuguese economy
• You must have no history of criminal records
• You must own the money you seek to invest
• You must commit to maintaining the investment for at least another five years

Can You Get Portugal Citizenship by Investment?

Yes, if you receive a Golden Visa, you become eligible for citizenship after five years. Unlike other countries, you do not actually need to live in Portugal during that period to acquire citizenship via the Golden Visa route. You only need to spend seven to fourteen days per year in the country.

However, you will have to prove you have accommodation in Portugal, a steady income, as well as knowledge of the Portuguese language, at least on a basic level.

Benefits of the Portugal Golden Visa

The Golden Visa for Portugal is a coveted visa for wealthy investors as it offers a wide range of benefits, such as:

• You can include the following family members on the visa with you:
  • Your spouse
  • Children under the age of 18
  • Dependent adult children who are full-time students (up to age 26)
  • Dependent parents of either yourself or your spouse
  • Any other dependents, such as minor siblings
• You and your family members will enjoy visa-free travel to the Schengen Zone countries for up to 90 days in any 180-day period.
• You don’t need to stay in Portugal full-time to renew the visa. You only need to stay for seven days every year.
• If you chose to, you and your family members can live in Portugal and have access to its healthcare and education.
• You can apply for a Portugal passport after 5 years. Since Portugal is part of the EU, a Portuguese passport will give you access to the EU free market as well as the freedom to travel to more than 100 countries around the world.

How to Apply for a Portugal Golden Visa?

You have to apply for a Portugal Golden Visa at the Portuguese Immigration and Borders Service’s (SEF).

• Register with the ARI Portal (here), which is the SEF’s online portal for handling Golden Visa Application (Residence Permits for Investment Activities – ARI). You can register yourself or a legal representative may do it on your behalf.
• Attach electronic copies of the required documents (in PDF, and no bigger than 4MB).
• Pay all the relevant fees.
• Wait for confirmation from the SEF.
• Schedule an appointment to submit your Golden Visa application at a local branch of the SEF.

If you do not wish to apply in person, you can hire a legal representative to apply on your behalf. The Portuguese authorities will accept this application as well.

You must have already performed your investment before you apply, as you must submit proof of the investment as well as the fact that you intend to maintain it for at least five years.

Application for family members: If applying for family reunification, then your family members can apply via the same portal and method. They can apply at the same time as you or later on.

Required Documents for Portugal Golden Visa Application

When submitting the Portugal Golden Visa application, you must have the following documents:

• The official Portugal Visa Application Form. This is downloadable from the Portuguese visa portal.
• Valid passport.
• Two passport-size pictures, which are in line with Portugal visa photo requirements.
• Proof of having obtained health insurance valid in Portugal.
• Proof of having no previous criminal records. You need a certificate from any country in which you have lived longer than one year. The certificate has to be issued by the relevant authorities within the previous three months and translated into Portuguese.
• Sworn Statement that you will maintain your investment for a minimum period of five years.
• Payment receipt from the ARI portal.
• Any documents related to your investment, as detailed below.

Purchasing real estate property worth at least €500,000

• Acquisition deed of the property or the pre-contract agreement.
• Declaration from a financial institution authorised or registered in Portugal, which proves the effective international transfer of the assets.
• The Land Register Certificate along with the records, endorsements, and registration in force, attests to the ownership of the property.
• The legal description of the property, if applicable.

Investment of  €350,000 in a property in a Portuguese urban regeneration area

• The above-mentioned documents
• Declaration from a competent entity proving that the property is in a regeneration area

Capital transfer of at least €1 million in a bank account

• Declaration from a financial institution that is registered in Portugal, attesting to the deposit. The transfer must be free from any charges and obligations.

Creation of at least ten job positions

• Declaration from a financial institution that is registered in Portugal, attesting to the required deposit.
• Individual employment contracts between the employer and the employees.
• If you are a shareholder in a company: Extract from the register of companies

Investment in the arts

• A Declaration issued by the Portuguese Strategy, Planning and Cultural Assessment Office, stating they have consulted with the competent authorities in the sector and attesting your investment in the support of the arts or restoration and maintenance of the national cultural heritage
• A Declaration from a financial institution in Portugal attesting the transfer of the assets

Investment in research activities

• A Declaration from the public or private scientific research institution, attesting the investment
• A Declaration from a financial institution in Portugal attesting the transfer of the assets

The Validity of Portugal Golden Visa

The Portugal Golden Visa is initially valid for one year. You can then continue to renew it for two-year periods, provided that you have maintained your investment. After five years (1+2+2) you become eligible for permanent residence or citizenship.

Obtaining a Portuguese passport gives you access to EU citizen rights, such as the freedom of movement and access to the free market.

How Long Do You Have to Live in Portugal to Maintain Golden Visa?

To maintain your Portugal Golden Visa, you have to stay in the country for at least 7 days in the first year and then fourteen days in the following two-year periods.

Unlike other types of investment visas, you do not have to live in Portugal permanently in order to renew your Golden Visa or to receive permanent residence or citizenship.

Changes to the Portugal Golden Visa Program 2021 

Starting from July 2021, if you invest in a high-density, metropolitan area of Portugal, such as Lisbon, Porto, Algarve, the Silver Coast, or Setubal, you will not qualify for a Golden Visa. These new changes intended to promote foreign investment in low-density areas of the country, considering that the majority of investment since the Golden Visa Program was implemented in 2012 have been in metropolitan and coastal areas.

After the new rules come into effect, there will be a transition period that will run to the end of December 2021, so that investors who applied in the first half of 2021 will be able to finalize their investment and visa applications.

Changes to the Portugal Golden Visa in January 2022

Starting from January 2022, requirements for certain investment options will change. Namely: 

• Purchasing real estate: Only properties in low-density and rural areas, as well as certain portside territories, will be eligible (listed here). 
• Capital transfer in a Portuguese bank account: You will have to invest €1.5 million instead of €1 million.
• Capital transfer for research activities: You will have to invest €500,000 instead of €350,000.
• Capital transfer in a qualifying Investment Fund: You will have to invest €500,000 instead of €350,000.

Creation of a company and jobs: You will have to invest €500,000 instead of €350,000 for the incorporation of a commercial company or to reinforce the share capital of a commercial company, and create at least five jobs (this remains the same).

In Portugal, the average monthly salary for a delivery driver is roughly 760 EUR. The lowest pay is 390 euros, while the highest is 1,160 euros (highest).

This is the typical monthly wage, which also includes housing, transportation, and other amenities. Based on factors including geography, gender, experience, and talents, delivery driver earnings might vary greatly. You can find a thorough analysis based on a variety of factors below.

Delivery Driver Salary Distribution in Portugal

The median, the maximum, the minimum, and the range

• Salary Range

  Delivery Driver salaries in Portugal range from 390 EUR per month (minimum salary) to 1,160 EUR per month (maximum salary).

• Median Salary

  The median salary is 730 EUR per month, which means that half (50%) of people working as Delivery Driver(s) are earning less than 730 EUR while the other half are earning more than 730 EUR. The median represents the middle salary value. Generally speaking, you would want to be on the right side of the graph with the group earning more than the median salary.

• Percentiles

  Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of Delivery Driver(s) are earning less than 500 EUR while 75% of them are earning more than 500 EUR. Also from the diagram, 75% of Delivery Driver(s) are earning less than 910 EUR while 25% are earning more than 910 EUR.

Job Description

Company is seeking a friendly and helpful food delivery driver to support our customers. As our newest driver, you’ll help us feed as many hungry people as possible—growing customer loyalty through pleasant interactions and excellent service.  

The ideal candidate will be a great communicator who possesses a valid driver’s license. If you enjoy a fast-paced role and are looking for flexibility in your schedule, we welcome you to apply.

Objectives of this Role

• Provide excellent customer service and build customer loyalty by delivering food in a timely, cordial manner
• Ensure orders are delivered accurately and in good condition
• Communicate any issues or delays that arise and resolve problems efficiently
• Represent the company with excellence and professionalism by driving safely, exercising good judgment, and treating customers with respect

Daily and Monthly Responsibilities

• Manage multiple orders, delivery locations, and customers at the same time
• Deliver orders within an optimal period of time, ensuring freshness of food and respecting customer preferences
• Safely operate a vehicle in all types of weather conditions
• Navigate local streets and highways with ease using a GPS
• Communicate clearly with customers and food service employees, demonstrating an eagerness to work through any issues or points of confusion
• Verify orders before each delivery and maintain a detailed, comprehensive delivery log

Skills and Qualifications

• Previous delivery or customer service experience in any industry
• Proven track record of succeeding in a time-sensitive setting
• Experience handling cash and giving change
• Familiarity with the local area, including streets, highways, and buildings

Portugal D1 visa (subordinate worker visa)

To be eligible for D1 Visa Portugal, they must have recently received a job offer in Portugal. The Portugal D1 Visa is also valid for immigrants with a job contract lasting at least 12 months.

What does a D1 subordinate worker visa mean? 

Unlike the popular F2 visa for students, D1 Visa in Portugal or the subordinate worker visa is not a regular kind of Visa. It is a special visa for people with a job offer to work in the country (Portugal). If the immigrant is a professional or has professional qualifications (e.g., lawyer, doctor, nurse, etc.), they will be eligible for a D1 professional worker visa.

Meanwhile, if the immigrant is a subordinate worker, they will be eligible for a D1 subordinate worker visa. This Portugal Visa features an essential contract for Portugal workers endorsed by the Employment and Vocational Training Institute.

D1 subordinate worker visas must also be applied for at the appropriate places, such as the Portuguese consulate or embassy in your home country. Once the job offer factor has been settled, an immigrant can successfully secure a residence in Portugal and start working.

However, please remember that the D1 visa Portugal applicant employment offer must be valid for at least one year before the Visa can be approved. An IEFP (Institute for Employment and Vocational Training) statement is also needed to complete the visa applicant’s registration.

Who can partake in this visa application? 

Non-European Union citizens who have an employment contract in a Portuguese company can proceed to fill out a work visa form. This citizen or the family member of the citizen must also apply in any nearby embassy located at or nearer to their neighbourhood.

The citizen must fill a particular vacancy supporting their embassy profile. The IEFP will authorise the vacancy. Professionals and subordinate workers from other countries can also apply for a work visa in Portugal.

In summary, the D1 Portugal visa is not for someone who wants to move into the country to search for jobs. Instead, the applicant must already have an employment offer in Portugal.

Can a Tourist apply for a Portugal D1 worker visa?

A tourist can apply for a D1 work visa, depending on the conditions. If the tourist has been in Portugal for a while and can provide a valid employment contract, they can obtain a work visa.

Tourists must also meet some additional criteria before confidently applying for residence visas. These requirements include:

• Proof of employment contract.
• A valid residence address.
• Proof of previous contribution to social security.
• An income that meets up with or surpasses the Portuguese minimum wage.

How to process D1 subordinate worker Visa Portugal

To start processing the Visa Portugal, candidates should first make an online appointment with the appropriate visa-issuing embassies. After that, some essential procedures can be considered.

Sometimes, the SEF might summon candidates to gather more information to clarify the visa application process. So in a situation like this, the SEF will direct questions and demand some documents from the applicants. Once this documentation can be presented, the Visa will be approved and issued after some days.

The D1 subordinate worker visa and the D1 professional worker visa usually take 30 to 90 days to be issued. The applicant can request their Visa at the Portuguese consulate. But the candidate should also remember that the application might not be approved for some reason.

Thus, it will be wise for applicants to postpone any hotel reservation and other steps till after the visa approval. This is to prevent inconvenient expenses on the part of the candidate. Also, the applicant can only secure a legal residence in Portugal if the Portuguese consulate has granted the Visa.

On arrival of applicants in Portugal, they must attend the SEF (Aliens and Border Service) program for about three days to validate their documentation.

General requirements for processing A D1 subordinate worker Visa 

This section covers all the documents you need to process a Portugal Visa and other requirements. Some of these requirements also apply to other types of visas, such as the F4 visa, E1 visa, etc.

Let’s look at some documents required for an immigrant to process their Visa.

• A copy of an employment contract signed by the candidate and the employer (or business company) in Portugal.
• A letter from the Portuguese business company that spotlights why they need to hire the applicant.
• One copy of the applicant’s curriculum vitae and other documents that display the applicant's professional qualifications.
• A statement of approval endorsed by IEFP on the applicant's employment contract.
• A declaration signed by the applicant. This declaration document must contain the applicant’s estimated period of stay in Portugal, legal residence details, and the main reason for the visa application.
• International medical travel insurance, which is valid for the applicant’s period of stay in Portugal.
• A Portuguese criminal record certificate with a maximum issuance lifespan of 3 months.
• A valid passport of the applicant (a maximum of two).
• A copy of the applicant’s recent or last income tax return.
• An invitation letter of accommodation acceptance from someone with Portuguese nationality. This Portuguese citizen must also have a legal residence in the country.
• A copy of the candidate’s birth certificate. However, in the case of a married candidate, a marriage certificate should be submitted along with the children’s birth certificates.

Medical Requirements

When planning a trip to Portugal in respect of professional activity, a lot of people often underestimate the most important thing. It’s one’s health!

Overview

The reason is simple. Most professionals would instead focus on other documentation, especially the curriculum vitae.

For some professionals, the evidence of no previous criminal records is at the top of their pecking order. It is because human beings are naturally defensive. However, when it comes to our health, we are less defensive.

Now back to the grind. The Portuguese territory is an alluring travel destination. In any case, there are some medical requirements to enter the country. They are as follows:

International Travel Insurance

International travel insurance is one of the most significant medical requirements when applying for a D1 worker visa.

Every applicant who is not of Portuguese nationality must get this insurance for one good reason. It allows one to weather medical storms/emergencies in Portugal.

Sometimes, your professional activity can get rosier in Portugal, and you may decide to give up. In case of this, you should know all the details of securing international travel insurance.

Who needs International Travel Insurance?

As stated earlier, anyone who is not a Portuguese national needs it. In this case, individuals from the United Kingdom, Korea, Australia, the United States, and many others will need to secure insurance.

An applicant may need to present some documents to enter Portuguese territory during visa application. International travel insurance is a mandatory one as far as this is concerned.

How does Travel Insurance work?

International travel insurance must cover the entire period of one’s residence in Portugal.

Aside from that, the insurance must cover the costs of repatriation in cases of death or grievous accidents.

How much does the Insurance cost?

The cost of Insurance varies based on several factors. The factors include:

• Insurance plan.
• Age
• Professional activity.
• Country of origin.
• Duration of the trip and many other factors.

Travel insurance is expected to cover at least 4% of the total amount spent on your trip, especially the border services.

For instance, if the trip costs ?4,000, travel insurance may cost a minimum of ?160.

Would you like International Travel Insurance?

Most visa applicants mention the two documents interchangeably.

However, the truth is that international travel insurance and travel insurance are different documents. They offer peculiar incentives for different cases.

In any case, it depends on the duration of the applicant’s trip to Portugal. It also depends on one’s other needs.

Travel insurance is recommended if the visa applicant’s professional activity will last for a short period. This short period may imply about 1 to 3 months.

However, international travel insurance is recommended if the applicant wants to relocate to Portugal for over a year.

Upsides of International Health Insurance and Travel  Insurance to Portugal.

International Travel Insurance

Travel Insurance

1. It covers emergency and routine healthcare in Portugal, such as medical check-ups.

It is limited to travel-related situations such as flight cancellations.

2. It offers medical coverage in every country.

It offers medical coverage only in the country.

What are the ideal options for health insurance for  Professionals in Portugal?

Excellent international travel health insurance options exist for professionals who have received job offers in Portugal.  They are as follows:

• Portugal Travel Insurance.
• Allianz Travel Insurance.
• Cigna Global Health Insurance and many others.

Fees Involved

The fee for processing a D1 work visa application is 90?.

An applicant will also need to work around some incidental expenses that pertain to obtaining a visa. It may relate to the costs of presenting the documents required for residence permits.

The following categories of persons are exempted from paying any visa fee:

• Applicants engaged in highly qualified research activities.
• Applicants whose descendants hold a residency permit under the family reunification clauses and many others.

What to Expect in a D1 professional worker visa Interview

Persons who apply for resident permits or D1 visas need to attend a face-to-face interview at the Portuguese consulate in their country of residence.

The most important part of the interview is maximum preparation. This is where most people get it wrong. Once the visa applicant prepares in advance, they will know what to say and how to respond to questions skillfully.

There is a list of common questions that are often asked in a D1 visa interview.

• Have you been to Portugal before?
• Do you have relatives or friends currently in Portugal?
• How long will you be staying in Portugal?
• Are you married?
• Do you have children? Who will take care of them while you are away?

The questions still need to be completed. The consular office will also ask about your job offer or professional activity in Portugal. Hence, the applicant should be prepared to ace them!

What to do after getting the D1 Visa?

After the D1 visa has been approved, the applicant can take it along with the necessary documents to Portugal.

Upon arrival in the Portuguese territory, the visa applicant must reach the local immigration department. The immigration officer will work with the applicant through all they need to know about the issuance of a residence permit and how to secure it.

The applicant can then apply for citizenship after five years of residence in the Portuguese territory.

For the Employer

Are you looking to Hire? Let us help you find the perfect candidates!

Step 1: Fill out the employer's questionnaire. Please provide us with the necessary details about your job requirements and company. We'll use this information to customise our services for you.  Fill in the form.

Step 2: Choose the best offer. Once we receive your completed questionnaire, we'll prepare a tailored proposal for recruitment, employee leasing, or outsourcing services.

Step 3: Welcome your new employee. We'll utilise our extensive network and resources to find the ideal candidate for your business. Please don't worry; we'll ensure favourable conditions for you and the employee.

Take advantage of exceptional talent for your company. Complete the employer's questionnaire today, and let us handle your hiring needs.

For Job Seeker Registration

If you are looking for Truck Drivers, such as our guest today, we would like you to fill out the application form on our website. After reviewing the details of the completed offer, a representative of AtoZ Serwis Plus will contact you and tell you about all the details.  Fill in the form.

Would you like some advice? So that you know, the information I've included here is for you to review. You'll always need to consult with your legal and tax advisor(s) and follow their guidance. AtoZ Serwis Plus cannot assist with legal or tax matters. The information presented is not specific to any particular company or workforce nor reflects how AtoZ Serwis Plus products are distributed in any jurisdiction. Instead, it is general. AtoZ Serwis Plus makes no representations or warranties regarding this information's accuracy, completeness, or timeliness. It shall not be liable for any losses from using or relying on it. I think it is your responsibility to exercise caution when using this information.

Disclaimer: www.atozserwisplus.Pl is a FREE visa database and marketplace for immigration experts. This page's content does not provide legal advice. Before applying, kindly consult an expert.