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A favorable company registration in Portugal in 2020

Company incorporation

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.

Read also:
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.
Corporate taxes

IRC - Portuguese corporate tax standard

21%

A corporate tax

17%

Companies in the Azores

16,8%

Companies in Madeira free trade area

5%

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.

  • The information outlined in the article is actual at the time of its publication.
  • Please refer to our specialists for checking possible solutions for your business.
  • Still have any questions?

    Fill out the form or contact us as you find convenient. Our experts will help you resolve the issue.

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