INTRODUCTION TO OPEN A COMPANY IN PORTUGAL

The Portuguese economy has some difficulties in keeping pace with the rest of the EU, and its GDP is still much lower than the EU average. This does not mean that Portugal has a poor outlook for international investors-far from it. The Portuguese company is a natural trading hub between Europe, Africa and the Americas, the economy is open, and it actively seeks to attract foreign investment and provides a large number of incentives.

What are the main types of Portuguese companies established?

There are two main forms of company structure for foreign companies, namely:

• Public company (S.A.)
• Private Limited Company (Lda)

What are the main characteristics of listed companies?

• This is the standard format for large enterprises
• Minimum share capital is 50,000 euros
• The minimum number of shareholders is five
• Stringent accounting and auditing requirements

What are the main characteristics of a private limited company?

• The most popular format for SMEs
• The minimum share capital is now only 1 Euro (previously 5,000 Euro)
• The minimum number of directors is one
• No restrictions on foreign shareholders / directors
• Liabilities are limited to investment

Will it be complicated to set up a company in Portugal?

More complicated than before. Portugal has simplified registration procedures in recent years, although professional advice is still absolutely necessary. We are experts in the establishment of Portuguese companies, so please ask for more details.

What about corporate tax?

Compared to 2005, Portugal ’s corporate tax was 21%. The tax rate is 30%. However, Portugal can provide a Madeira free trade zone, and the company's corporate tax rate is much lower, at 5%.

How easy is it to recruit employees in Portugal?

Portugal has a strong and highly developed recruitment industry. There is no shortage of qualified job seekers, but it is important to ensure that you are dealing with trusted recruitment agencies. We have a group of recruiting experts recommended by Portugal, just ask for detailed information. It should also be noted that the Portuguese labor law protects employees and therefore must be consulted before signing the contract. We have a network of local experts who are happy to help you, so please contact us.

What is the regulatory environment?

For centuries, Portugal has relied on international trade, and today ’s economic freedom reflects this. The regulatory environment is easy-going while maintaining standard EU regulations. Foreign companies can invest freely, although there are limitations in certain strategic areas. There are no obstacles for capital to enter the country, and there are no restrictions on the return of profits or dividends.

Are there economic incentives for Portuguese company registration?

Portugal has provided generous incentives to attract foreign companies wishing to invest, many of which are supported by EU funds. For large investment projects and proposals that will have a positive impact on tourism, science and the environment, special incentives can be used.

What about bank facilities?

Most major international banks and financial institutions are in Portugal, providing investors with a full range of banking services. The local financial sector is also capable of meeting the needs of the international investment community. If you want to open a company in Portugal, you will need a bank account: On Demand International will be happy to help you open a bank account in Portugal.

How can I get more information about opening a company in Portugal?

On Demand International makes it easy for you to open a company in Portugal, so please contact us immediately for more detailed information about our Portuguese company establishment and company services!