Business opportunities in Portugal
With globalisation and the development of modern technology, starting a business abroad is becoming an increasingly attractive prospect for entrepreneurs. International markets offer new opportunities for expansion, customer acquisition and financial success. Portugal is an excellent platform for both starting and expanding your business, thanks to its favourable taxation, active support for start-ups, resident permit for investment in Portuguese companies and the ease with which you can set up your business.
Advantages
Ease of administration
The administrative procedures for doing business in Portugal are relatively simple and straightforward. This simplifies the whole process of running a business.
Residence permit
Business owners in Portugal have the possibility to obtain a residence permit. This can be an attractive for those who would like to live and work in here.
Quick incorporation procedure
In Portugal, the time required to set up a company is minimal - only 2 days. This contributes to a quick start and saves the entrepreneur's time.
Economic security
Portugal is known for its economic stability, which creates a favourable business environment. This contributes to the reliability and long-term viability of businesses.
Freedom to travel in the Schengen zone
Business owners in Portugal can move freely within the Schengen area. This facilitates business travel and the expansion of the business network.
Corruption-free environment for clean business
Clean business environment without corruption: Portugal is recognised as one of the countries with the lowest levels of corruption. This creates confidence in the business environment and promotes fair and transparent transaction terms.
Low tax rates
Low tax rates: Portugal offers attractive tax rates for companies. This can be advantageous for entrepreneurs wishing to optimise their financial obligations.
Types of enterprises in Portugal
Individual businesses
In Portugal, entrepreneurs can choose from several types of company, depending on their needs and objectives.
Sole proprietorship
(Empresário em Nome Individual, ENI)
This is the simplest and most common type of company in Portugal. It is intended for small businesses with low investment and low risk. The owner of the company is a single natural person and the company name must contain his full or short name. The company name must include his full or abbreviated name and may also include an expression related to the activity carried out. It is important to note that personal and business assets are combined and the entrepreneur is liable for the debts of the company with his personal assets.
Individual Limited Liability Company
(Estabelecimento Individual de Responsabilidade Limitada, LDA)
This type of company allows a single natural or legal person to set up a company with limited liability. The share capital is held by the sole shareholder, who may be a natural or legal person. The company name must contain the prefix "Unipessoal" or "Sociedade Unipessoal" followed by "Limitada" or "Lda".
One-member private limited company
(Sociedade Unipessoal por Quotas)
In this type of company, the share capital is divided into shares, which may be divided among several investors, but only one natural or legal person may be the sole owner. The minimum amount of the share capital is determined by the shareholders.
Joint venture
Portugal offers a flexible and friendly environment for registering and operating a business,
allowing entrepreneurs to choose the most appropriate form for their joint venture.
General partnership
(Sociedade em nome coletivo)
This type of company can be formed by two or more partners and has no minimum capital requirement. The personal assets of the partners and the assets of the company are pooled and each partner is responsible for his own debts and the debts of all the partners.
Collective company with limited liability
(Sociedade por quotas)
This is a legal form of limited liability company consisting of two or more shareholders. The company's capital is divided into shares. Only the company's assets are liable to creditors, and the partners have no legal obligation to pay the company's debts with their personal assets.
Public limited company
(Sociedade anónima, S.A.)
This is a legal form of company registration in which the share capital is divided into shares that can be freely traded without the need for a public or notarial deed. As a limited company, the profits generated are distributed to the shareholders. Each shareholder is liable only for the value of their shares, and liability for any debts incurred rests with the company as a whole.
Limited partnership Collective company or limited partnership
(Sociedade em comandita)
This is a business entity with pooled capital consisting of two categories of members: general partners, who contribute capital and manage the company, and limited partners, who contribute goods or services. To set up such a company, a minimum compulsory capital of €50,000 is required.
Production Cooperative
(Cooperativa)
is a form of autonomous organisation made up of members of a particular economic or social group who seek to carry out a particular activity for the common benefit.
Paperwork
Once the type of company has been selected, the relevant documents must be prepared.
The following documents are required for natural persons:
1. Identity document, cartão de cidadão (citizen's card), título de residência (residence permit) or passport.
2. Portuguese taxpayer identification number (número de identificação fiscal, NIF).
3. Settlement account in Portuguese bank
4. Proof of place of residence in Portugal
The following documents are required for legal entities:
1. Identity card of the legal entity.
2. Minutes of the general assembly meetings which authorise the legal representatives to establish the company.
3. Documents identifying the legal representatives of the company, such as residence permit (título de residência) or passport.
4. Certificate of ownership, current memorandum of association or social contract of the collective organisation
It is important to note that citizens of any country can register a business in Portugal by simply providing an identity document and a Portuguese tax identification number. However, the entrepreneur must be legalised in Portugal by obtaining a D2 visa in order to carry on business.
If you decide to open a company in person, all the co-founders must be present at the registration of this legal entity.
When the company is formed, a company agreement (pacto da sociedade) is drawn up and a commercial registration (registo comercial) is made.
The following set of documents will be issued:
1. Social contract
2. Access code for the permanent commercial certificate (código de acesso à certidão permanente comercial)
3. Access code for the company/collective card (código de acesso ao Cartão da Empresa/Pessoa Coletiva)
4. Social Security Number of the company (número de identificação de segurança social da empresa, NISS)
Once the company has been registered, the founder or partners must pay the initial capital into the company's bank account within five working days. It is also possible for the partners to deposit the share capital into the company before the end of the first financial year. Once the company has been incorporated, a bank account must be opened. As mentioned above, the share capital must be paid into this account within five working days of opening. There are no restrictions on the choice of bank.
The final in the process of opening a business is the activation of your bank account number (NIB), which officially legalises your professional activity in the Portuguese Republic. This is usually done by an accountant and once this step is completed, your business is fully operational.