Portugal Company Formation

The Portuguese economy has had some difficulties in keeping pace with the rest of the European Union and its gross domestic product remains significantly below the EU average.

However, Portugal is far from being a poor prospect for international investors. A natural hub for trade between Europe and the Americas, the country has an open economy and actively seeks to attract foreign investment, with plenty of incentives available.

If you’re considering how to set up a Portuguese company then please contact us for expert advice and information.

A summary of Portugal Corporate Taxes is available here.

What options are available in Portugal?

Frequently Asked Questions about Portugal

What are the main types of company available in Portugal?

There are two main forms of Portuguese company for foreign investors to incorporate:
– Public Limited Liability Company (S.A.)
– Private Limited Liability Company (Lda)

What are the main features of a Public Limited Liability Company (S.A.)

– This is the standard format for large businesses
– The minimum share capital is €50,000
– The minimum number of shareholders is five
– There are stringent accounting and auditing requirements

What are the main features of a Private Limited Liability Company (Lda)?

– This is the most popular format for small and medium businesses
– The minimum share capital is €1
– The minimum number of directors is one
– There are no restrictions on foreign shareholders

What are the Corporation Tax levels in Portugal?

Corporation Tax in Portugal is at a rate of 25% plus 2.5% local tax, although this is an improvement as before 2005 the rate was 30% plus 3% local tax.

Portugal can however offer the Madeira Free Trade Zone, which has a much lower rate of Corporation Tax, between 5% and 12.5%.

How easy is it to recruit staff in Portugal?

Portugal has a strong and highly developed recruitment industry. There is no shortage of well-qualified applicants for jobs, but it is important to make certain that you are dealing with a trustworthy recruitment agency.

It is also worth noting that Portuguese labour laws protect the employee and so it is essential to take advice before entering into a contractual arrangement.

If you want the pick of the crop, our recruitment specialists are ready to help.

How easy is it to close a Portuguese company?

Please contact us in order to discuss closing your company in Portugal.

What about banking facilities in Portugal?

Most major international banks and financial institutions are established in Portugal and offer a full range of banking facilities to investors.

The local financial sector is also more than capable of meeting the needs of the international investment community.

For assistance with opening a bank account in Portugal, please contact us.

What are the financial incentives available in Portugal?

Portugal offers generous incentives, many of them backed by EU funds, to attract foreign companies wishing to invest.

Special incentives are available for large investment projects and for proposals that would impact positively on tourism, science and the environment.

What is the Portuguese regulatory environment like?

For centuries Portugal has relied on international trade, and this is reflected today in the liberal nature of its economy. The regulatory environment is easy going, while maintaining standard EU rules.

Foreign companies are free to invest as they wish, although there are limits in certain strategic sectors. There are no obstacles for capital entering the country, nor any restraint on the repatriation of profits or dividends.