Portugal is a state with a fast-growing economy, that is attracting an increasing amount of foreign investment. A jurisdiction offers many incentives for its investors.
Forms of Portuguese enterprises
Foreign investors can establish a company in Portugal in the form of:
- a Public Limited Company (SA);
- an LLC (SpQ/Lda).
Conditions for registering an Lda in Portugal:
- A minimum share capital is 1 euro (paid until the end of the tax year, the year of a company registration).
- A min. share capital for an enterprise with 1 shareholder is 1 €, with 2 shareholders - 2 €.
- Opening an account with a Portuguese bank remotely is a required condition.
- Social Security payment is required immediately after a company registration.
- To receive a tax correspondence in this jurisdiction, you need an electronic mail box.
A structure of Lda:
- 1 director (a foreigner or a resident of Portugal);
- 1 shareholder, an individual or legal entity, who may be a director;
- company registers are not publicly available;
- a max. number of sharers is unlimited, a residency does not matter;
What are Portuguese SA characterized by:
- A min. authorized capital is 50,000 euros;
- A min. number of shareholders is 5;
- Strict accounting/auditing requirements.
To register an LLC in Portugal, you need:
- a unique name;
- data of directors/shareholders;
- forms of identification;
- a confirmation of a legal address (an enterprise must necessarily register an office in this jurisdiction in order to send official letters).
Qualified lawyers of IQD Consulting will provide legal support services in registering a physical office in Portugal.
Benefits of opening an Lda in Portugal:
- When registering a Portuguese Lda, a Company's Charter must be notarized. You must also open an account in Portugal.
- Non-residents (legal entities or individuals) have the opportunity to register an enterprise in Portugal.
- There is an opportunity to register a Portuguese company with 1 person, who can be both a director and a shareholder.
- A MOA describes specific actions or gives a broad description, that allows you to conduct a versatile business.
- If the Charter allows, it is possible to hold meetings of shareholders anywhere.
What else you need to know about registering Portuguese Lda:
- Lda members have quotas, described in the Charter.
- Lda requires 2 members, it is allowed to combine Lda with one quota holder.
IRC - Portuguese corporate tax standard
A corporate tax
Companies in the Azores
Companies in Madeira free trade area
A state fee, levied on residents and non-residents with a permanent establishment
3% for profits from 1,5 to 7,5 million euros; 5% on profits from 7,5 to 35 million euros; 7% of profits in excess of 35 million euros
A municipal levy, levied on residents and non-residents with a permanent establishment
Depends on the municipality, up to 1,5%
Taxes for foreign enterprises
The rate is the same, but only the source of income in Portugal is taxed. The tax rate on investment income is 35%.
Is it difficult to register a company in Portugal?
Professional advice remains necessary, when registering a Portuguese enterprise. Experienced lawyers of IQD Consulting will provide a full range of legal assistance in registering a company in Portugal.