Company
registration
in Portugal

Portugal ranks among the top 10 safest countries globally, holding the sixth position in the Global Peace Index in 2023. It also has a low level of corruption, ranking 33rd out of 180 countries in the Corruption Perceptions Index for 2022, with a score of 62. Foreign nationals can be founders & owners of Portuguese company, even without permanent residency, making the setup process straightforward. Portuguese companies benefit from all advantages of European businesses, including trade with other registered EU companies and access to unified European VAT system. Portugal has a developed tech ecosystem and a rapidly growing startup sector. The government offers various incentives for tech firms, tax benefits, financial support for innovative projects.

Benefits of doing business in Portugal with Finevolution

• Full company registration within agreed time frames
• Assistance with opening a bank account
• Post-registration maintenance
• Accounting & legal support

Choosing a business structure

Portugal companies can be either private or public, with different registration and operational requirements. The most common type is a private limited company (Sociedade por Quotas, LDA), similar to an LLC.

Private limited company (LDA):

• Requires a minimum of two founders, each responsible for a share of the capital
• At least one director is needed
• No min. capital requirement; shares must be worth at least €1 each
• Only registered shares are permitted
• Standard set of documents, unique name, and description of future activities
• Owners hold quotas described in the company’s Articles of Association. Previously, minimum capital was €5,000, now reduced to €1,000. LDA is exempt from annual audits if it meets two out of three criteria for two consecutive years:
• Assets below €1.5 million
• Income under €3 million
• Fewer than 50 employees

Public company (SA):

• Suitable for larger ventures:
• Minimum of 5 founders
• Minimum capital of €50,000
• More complex structure, suitable for medium to large enterprises with high investment levels
• Shareholders’ liability is limited to their contributions.

Both forms have distinct benefits and requirements. Choice depends on the scale, number of founders, and plans for growth and investment. Most clients choose to register as LDA business in Portugal.

Steps for registering Portuguese company

• Initial consultation with Finevolution experts
• Select name, verify and register it with the National Registry of Legal Entities (Registro Nacional de Pessoas Colectivas)
• Prepare the Articles of Association and necessary documents (passport copies, signature samples, special forms). Confirm a registered office address in Portugal
• Choose and appoint an accountant (Finevolution partners with local professionals)
• Open corporate account and deposit the capital
• Submit documents to the Portuguese Legal Entities Register
• Register with tax and social security authorities
• Notarize the Company Incorporation Act in Portugal

Registration timeline

The entire process typically takes 3 weeks. However, to complete the registration, entrepreneurs must open a bank account within 15 days of registration. In practice, this timeline is challenging, leading to an automatic €75 fine. Average timeframe for account opening is 3-4 weeks.

Requirements for LDA registration in Portugal

• International passports of owners & director
• Bank statement from the last three months showing income
• Tax return for sole proprietors
• Certificate from business registry (if applicable)
• Tax identification number

What’s included in the cost of registration?

Portuguese company registration package includes:

1. Initial consultation
2. Document preparation
3. State fee (€360)
4. Personal presence during registration
5. Bank account opening
6. Beneficial ownership registry entry
7. VAT registration
8. One-week personal visit to Lisbon
9. Additional costs for legal address rental

Business taxation in Portugal

• Corporate income tax — 21% (with local taxes in some zones, up to 31.5%)
• Dividend tax — 28%
• Reduced corporate income tax rate — 17% applies to SMEs on the first €25,000 of taxable income (standard rate applies beyond that)
• Directors must pay themselves a salary. For a minimum salary of €470, pension contributions amount to €150.

If you decide to register in Portugal, don’t delay. Our team will gladly provide business and legal consultations, prepare the necessary documents, and complete company registration in Portugal. Send a request through the form below or a message on Telegram bot/Viber, WhatsApp chat, for consultations. Our working hours are 9:00-19:00 from Monday to Friday.