QUICK & SIMPLE
Incorporate Your Subsidiary, Company, or Branch in Portugal
Setting up a subsidiary, new company, or branch in Portugal offers an excellent opportunity to expand your business into the European market. Portugal’s strategic location, business-friendly environment, and access to the EU make it an ideal destination for establishing your operations. Whether you’re launching a new venture, creating a subsidiary, or expanding an existing company, we provide comprehensive support throughout the incorporation process, ensuring compliance with local regulations and guiding you through every step, from selecting the right business structure to completing all necessary registrations. Our team will streamline the process, allowing you to focus on growing your business in this thriving market.
Tailored Solutions
Receive personalized support from our experts, guiding you through every step of your business incorporation.
Legal Entity Registration
We handle the full registration process for your company or branch, ensuring compliance with Portuguese law.
Seamless Setup
A smooth and efficient incorporation process with minimal steps, allowing you to focus on your business growth.
All you need to know
When incorporating a business in Portugal, choosing the right entity type is a critical step. Portugal offers several options, each suited to different business needs, levels of liability, and investment goals. Below, we outline the most common types of entities you can establish, whether you’re creating a new company, a subsidiary, or a branch of an existing business.
1. Private Limited Liability Company (LDA)
An LDA (Sociedade por Quotas) is the most common business structure for small to medium-sized companies in Portugal. It limits the liability of shareholders to their contributions, offering personal asset protection.
- Minimum Shareholders: 1 or more.
- Minimum Share Capital: €1 per shareholder (commonly €5,000+ for practical purposes).
- Liability: Limited to the company’s assets, protecting shareholders from personal liability.
- Best For: Small to medium-sized businesses and family-run enterprises.
2. Public Limited Company (SA)
An SA (Sociedade Anónima) is ideal for larger companies that may seek public investment or issue shares on the stock exchange. It has stricter regulatory requirements but allows for more flexible capital structures.
- Minimum Shareholders: 5 or more (can be reduced to 1 in specific cases).
- Minimum Share Capital: €50,000.
- Liability: Limited to the value of shares owned.
- Best For: Larger enterprises, multinational companies, or businesses planning to raise capital publicly.
3. Subsidiary
A subsidiary is a separate legal entity established by a parent company in another country. The subsidiary operates independently in Portugal but remains under the control of the parent company.
- Legal Status: Separate legal entity from the parent company.
- Liability: Limited to the subsidiary’s assets, protecting the parent company.
- Best For: Companies looking to expand internationally with independent operations in Portugal.
4. Branch (Sucursal)
A branch is an extension of a foreign company that operates in Portugal. Unlike a subsidiary, a branch is not a separate legal entity, and the parent company is fully liable for the branch’s activities.
- Legal Status: Not a separate legal entity.
- Liability: The parent company is fully responsible for the branch’s liabilities.
- Best For: Foreign companies seeking to establish a presence in Portugal without creating a separate legal entity.
5. Holding Company
A holding company is primarily created to own shares in other companies. This structure is often used for tax optimization and asset management across multiple companies.
- Legal Status: Separate entity that controls other companies.
- Liability: Limited to the holding company’s assets.
- Best For: Investors and corporations managing multiple entities, particularly for strategic investment and tax purposes.
Choosing the Right Structure
The type of entity you choose will depend on several factors, such as your business goals, liability preferences, and the level of independence required from the parent company. Our experts are here to help you assess your specific situation and guide you in selecting the most appropriate structure for your new business or branch in Portugal.
Ensuring that your company or branch is fully compliant with Portuguese legal and tax regulations is essential for a smooth and successful operation. Portugal has a business-friendly environment, but companies must adhere to a number of regulatory requirements to avoid legal issues or penalties. This section covers the key aspects of legal and tax compliance that you need to be aware of when incorporating and operating in Portugal.
1. Company Registration and Legal Formalities
Once you decide on the type of entity to establish, several legal steps must be completed to formally incorporate your company or branch. These include:
- Commercial Registration: All businesses must be registered with the Commercial Registry Office (Conservatória do Registo Comercial) in Portugal. This registration provides your company with legal recognition and ensures that your business can operate under Portuguese law.
- Company Name Approval: Before registering, your company name must be approved and confirmed to be unique through the Portuguese Institute of Industrial Property (INPI).
- Articles of Association: Drafting and notarizing the articles of association is required. These documents outline your company’s structure, shareholding, and operational guidelines.
- Taxpayer Identification Numbers (NIF): Both the company and its shareholders must obtain a NIF (Número de Identificação Fiscal) to conduct any legal and financial transactions in Portugal.
2. Taxation in Portugal
Portugal offers a competitive tax regime, but businesses must comply with national tax laws to operate effectively. Here are the key taxes your company will need to consider:
Corporate Income Tax (IRC):
Corporate income tax in Portugal is generally 21% on the company’s taxable profit. Companies may also be subject to municipal taxes of up to 1.5%, depending on the location. For small and medium-sized enterprises (SMEs), a reduced rate of 17% may apply on the first €50,000 of taxable income.Value-Added Tax (VAT):
The standard VAT rate in Portugal is 23%, but reduced rates of 6% or 13% apply to specific products and services. All companies providing goods or services must register for VAT and comply with VAT reporting requirements.Social Security Contributions:
Employers are required to contribute to the Portuguese social security system. The current employer contribution rate is 23.75% of an employee’s gross salary, while employees contribute 11%.Withholding Taxes:
Companies must withhold taxes on payments made to non-residents, including dividends, interest, and royalties. The standard rate is 25%, though this may be reduced under applicable tax treaties.
3. Accounting and Reporting Requirements
Portuguese law requires businesses to maintain accurate financial records and adhere to strict accounting standards. Some key obligations include:
Annual Financial Statements:
All companies must prepare and submit annual financial statements in accordance with Portuguese GAAP (Generally Accepted Accounting Principles) or International Financial Reporting Standards (IFRS), depending on the size of the company.Monthly and Quarterly Reporting:
Businesses are required to file VAT returns on a monthly or quarterly basis, depending on turnover, and submit regular reports for social security contributions and income tax withholdings.Auditing:
Large companies or those meeting certain financial thresholds (e.g., exceeding €3 million in turnover) must have their accounts audited annually by an independent certified accountant or auditor.
4. Employment Law Compliance
If your business intends to hire employees in Portugal, compliance with Portuguese employment law is mandatory. Key areas of focus include:
Employment Contracts:
All employees must have a written employment contract, and these contracts should comply with local labor laws regarding wages, working hours, and employment conditions.Labor Rights:
Portuguese law guarantees certain rights to employees, including paid vacation (22 working days per year), public holidays, maternity and paternity leave, and protections against unfair dismissal.Work Permits for Foreign Employees:
If you plan to hire foreign nationals, you must ensure they have the proper work permits or residency visas. Non-EU workers will need a work visa, which requires sponsorship by the company.
5. Data Protection (GDPR)
Portugal is part of the European Union and must comply with the General Data Protection Regulation (GDPR). This regulation imposes strict rules on how companies handle and protect personal data, including customer and employee information.
Data Collection and Consent:
Companies must obtain explicit consent before collecting or processing personal data.Data Breach Reporting:
In the event of a data breach, companies must notify the relevant authorities within 72 hours and take appropriate measures to mitigate any harm.
6. Ongoing Compliance and Renewals
Compliance is not just a one-time process; it requires continuous monitoring and adherence to regulations. Key ongoing obligations include:
Annual Reporting:
Companies must file an annual tax return and submit financial statements to the relevant authorities.Licenses and Permits:
Depending on the nature of your business, you may need specific licenses or permits (e.g., for hospitality, food services, or construction). Make sure all licenses are up to date and renewed as necessary.Updates to Corporate Structure:
Any changes to the company’s structure, such as new shareholders, directors, or changes in share capital, must be reported to the Commercial Registry and updated accordingly.
Navigating Legal and Tax Compliance with Expert Support
Ensuring full legal and tax compliance can be complex, especially when operating in a foreign country. Our team of legal and tax professionals is here to guide you through every aspect of the process, from initial incorporation to ongoing compliance. We ensure your company meets all regulatory obligations, allowing you to focus on growing your business while staying in line with Portuguese law.
Incorporating your company, branch, or subsidiary in Portugal involves a number of legal steps and formalities. This process can be streamlined with the right guidance and support. Below is a detailed outline of the key steps involved in setting up your business in Portugal, from initial preparation to final registration.
1. Initial Consultation and Planning
The first step is a detailed consultation to understand your business goals and identify the most suitable business structure. Whether you’re setting up a new company, a subsidiary, or a branch, we’ll help you assess the best fit based on your operational needs, investment goals, and liability considerations. During this stage, we will also discuss:
- Entity type (Private Limited Company, Public Limited Company, Branch, Subsidiary, etc.)
- Shareholder and director requirements
- Capital requirements
- Regulatory considerations depending on your industry
2. Obtaining a Portuguese Tax ID (NIF)
Before you can incorporate a company in Portugal, both the company’s shareholders (individuals or companies) and directors need to have a Portuguese Tax Identification Number (NIF). Our team will handle the process of obtaining the NIF on your behalf, ensuring all stakeholders are set up correctly for the next steps.
3. Drafting the Articles of Association
The Articles of Association are a key legal document that outlines your company’s structure, governance, and operating guidelines. This document typically includes:
- Company name and legal form
- Business activity
- Share capital and share distribution
- Responsibilities of directors and shareholders
- Voting rights and decision-making processes
Our legal team will help draft and notarize this document, ensuring that it complies with Portuguese law and meets your business needs.
4. Company Name Registration and Reservation
You will need to register your company name with the National Registry of Legal Entities (RNPC) to ensure that your chosen name is unique and not already in use by another entity. We will manage this process for you, including submitting your name options and ensuring the chosen name is reserved for your business.
5. Commercial Registration
Next, your company must be registered with the Commercial Registry Office (Conservatória do Registo Comercial). This official registration gives your company legal recognition in Portugal and allows it to operate formally. Our team will handle the submission of all necessary documents, including:
- Articles of Association
- Proof of share capital deposit
- NIF numbers of shareholders and directors
- Company name approval
6. Opening a Corporate Bank Account
To incorporate in Portugal, you will need a Portuguese corporate bank account. This account will be used to deposit your company’s share capital and handle business transactions. We will assist you in opening a business bank account remotely, working with our network of trusted banks to ensure the process is smooth and compliant with local banking regulations.
7. Depositing Share Capital
Once the bank account is set up, you will be required to deposit the minimum share capital as outlined in the Articles of Association. For most entities, this is €1 for an LDA, though typically higher amounts are deposited for practical purposes, and €50,000 for an SA (Public Limited Company). Proof of deposit is required to proceed with incorporation.
8. Registering for Tax and Social Security
After incorporation, your company will need to be registered with the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) and the Social Security Institute. This is necessary for paying corporate taxes, VAT (if applicable), and making social security contributions for employees. The key registrations include:
- VAT (Value-Added Tax) registration
- Corporate Income Tax (IRC) registration
- Social Security registration (if you have or plan to hire employees)
We will ensure your company is correctly registered and fully compliant with these obligations from the outset.
9. Registration of Beneficial Ownership
In Portugal, companies must declare their Ultimate Beneficial Owners (UBOs). This refers to individuals who directly or indirectly hold at least 25% of the shares or voting rights in the company. Our team will assist in submitting this information to the Central Register of Beneficial Ownership (RCBE), as required by law.
10. Obtaining Licenses and Permits
Depending on your business activity, you may need additional licenses or permits to operate legally in Portugal. For example, sectors such as construction, hospitality, and healthcare often require special authorizations. We will help you identify any necessary permits and handle the application process to ensure your business is fully licensed to operate.
11. Hiring Employees and Labor Law Compliance
If your company plans to hire employees in Portugal, you must comply with Portuguese labor laws. This includes providing employment contracts, registering employees for social security, and adhering to health and safety regulations. Our team can guide you through the process of:
- Drafting employment contracts
- Ensuring compliance with local labor laws
- Registering employees for social security and tax purposes
12. Final Review and Launch
Once all the steps are completed, your company will be fully incorporated and ready to operate in Portugal. We will conduct a final review to ensure everything is in order, including confirming tax registration, social security compliance, and any additional regulatory requirements. From this point, your company can begin its operations legally in Portugal.
Our Support Throughout the Incorporation Process
Incorporating a company or branch in Portugal involves several legal steps, but with the right guidance, it can be a straightforward process. Our team of legal, financial, and business experts will be with you every step of the way, from the initial consultation to the final registration. We streamline the incorporation process to ensure your business is up and running smoothly, so you can focus on your growth and operations in Portugal.
Incorporating a company or branch in Portugal involves several government fees at different stages of the process. Below is a breakdown of the typical costs you can expect.
1. Company Incorporation Costs
Physical Incorporation (« Empresa na Hora »): €360
Fast-track, on-the-spot incorporation.Online Incorporation (« Empresa Online »): €220
Incorporation with pre-approved articles of association, typically processed within 2 months.
2. Additional Corporate Name Costs
Name Request (Standard): €75
Standard name request process, which can take up to 2-3 months, depending on the backlog.Urgent Name Request: €150
Urgent name approval, processed within 48 hours.
3. Additional Costs for Branch or Subsidiary
- NIPC (Tax Identification Number for Collective Entities): €50
Required for the incorporation of a branch or subsidiary when the parent company is foreign.
All you need to know
When incorporating a business in Portugal, choosing the right entity type is a critical step. Portugal offers several options, each suited to different business needs, levels of liability, and investment goals. Below, we outline the most common types of entities you can establish, whether you’re creating a new company, a subsidiary, or a branch of an existing business.
1. Private Limited Liability Company (LDA)
An LDA (Sociedade por Quotas) is the most common business structure for small to medium-sized companies in Portugal. It limits the liability of shareholders to their contributions, offering personal asset protection.
- Minimum Shareholders: 1 or more.
- Minimum Share Capital: €1 per shareholder (commonly €5,000+ for practical purposes).
- Liability: Limited to the company’s assets, protecting shareholders from personal liability.
- Best For: Small to medium-sized businesses and family-run enterprises.
2. Public Limited Company (SA)
An SA (Sociedade Anónima) is ideal for larger companies that may seek public investment or issue shares on the stock exchange. It has stricter regulatory requirements but allows for more flexible capital structures.
- Minimum Shareholders: 5 or more (can be reduced to 1 in specific cases).
- Minimum Share Capital: €50,000.
- Liability: Limited to the value of shares owned.
- Best For: Larger enterprises, multinational companies, or businesses planning to raise capital publicly.
3. Subsidiary
A subsidiary is a separate legal entity established by a parent company in another country. The subsidiary operates independently in Portugal but remains under the control of the parent company.
- Legal Status: Separate legal entity from the parent company.
- Liability: Limited to the subsidiary’s assets, protecting the parent company.
- Best For: Companies looking to expand internationally with independent operations in Portugal.
4. Branch (Sucursal)
A branch is an extension of a foreign company that operates in Portugal. Unlike a subsidiary, a branch is not a separate legal entity, and the parent company is fully liable for the branch’s activities.
- Legal Status: Not a separate legal entity.
- Liability: The parent company is fully responsible for the branch’s liabilities.
- Best For: Foreign companies seeking to establish a presence in Portugal without creating a separate legal entity.
5. Holding Company
A holding company is primarily created to own shares in other companies. This structure is often used for tax optimization and asset management across multiple companies.
- Legal Status: Separate entity that controls other companies.
- Liability: Limited to the holding company’s assets.
- Best For: Investors and corporations managing multiple entities, particularly for strategic investment and tax purposes.
Choosing the Right Structure
The type of entity you choose will depend on several factors, such as your business goals, liability preferences, and the level of independence required from the parent company. Our experts are here to help you assess your specific situation and guide you in selecting the most appropriate structure for your new business or branch in Portugal.
Ensuring that your company or branch is fully compliant with Portuguese legal and tax regulations is essential for a smooth and successful operation. Portugal has a business-friendly environment, but companies must adhere to a number of regulatory requirements to avoid legal issues or penalties. This section covers the key aspects of legal and tax compliance that you need to be aware of when incorporating and operating in Portugal.
1. Company Registration and Legal Formalities
Once you decide on the type of entity to establish, several legal steps must be completed to formally incorporate your company or branch. These include:
- Commercial Registration: All businesses must be registered with the Commercial Registry Office (Conservatória do Registo Comercial) in Portugal. This registration provides your company with legal recognition and ensures that your business can operate under Portuguese law.
- Company Name Approval: Before registering, your company name must be approved and confirmed to be unique through the Portuguese Institute of Industrial Property (INPI).
- Articles of Association: Drafting and notarizing the articles of association is required. These documents outline your company’s structure, shareholding, and operational guidelines.
- Taxpayer Identification Numbers (NIF): Both the company and its shareholders must obtain a NIF (Número de Identificação Fiscal) to conduct any legal and financial transactions in Portugal.
2. Taxation in Portugal
Portugal offers a competitive tax regime, but businesses must comply with national tax laws to operate effectively. Here are the key taxes your company will need to consider:
Corporate Income Tax (IRC):
Corporate income tax in Portugal is generally 21% on the company’s taxable profit. Companies may also be subject to municipal taxes of up to 1.5%, depending on the location. For small and medium-sized enterprises (SMEs), a reduced rate of 17% may apply on the first €50,000 of taxable income.Value-Added Tax (VAT):
The standard VAT rate in Portugal is 23%, but reduced rates of 6% or 13% apply to specific products and services. All companies providing goods or services must register for VAT and comply with VAT reporting requirements.Social Security Contributions:
Employers are required to contribute to the Portuguese social security system. The current employer contribution rate is 23.75% of an employee’s gross salary, while employees contribute 11%.Withholding Taxes:
Companies must withhold taxes on payments made to non-residents, including dividends, interest, and royalties. The standard rate is 25%, though this may be reduced under applicable tax treaties.
3. Accounting and Reporting Requirements
Portuguese law requires businesses to maintain accurate financial records and adhere to strict accounting standards. Some key obligations include:
Annual Financial Statements:
All companies must prepare and submit annual financial statements in accordance with Portuguese GAAP (Generally Accepted Accounting Principles) or International Financial Reporting Standards (IFRS), depending on the size of the company.Monthly and Quarterly Reporting:
Businesses are required to file VAT returns on a monthly or quarterly basis, depending on turnover, and submit regular reports for social security contributions and income tax withholdings.Auditing:
Large companies or those meeting certain financial thresholds (e.g., exceeding €3 million in turnover) must have their accounts audited annually by an independent certified accountant or auditor.
4. Employment Law Compliance
If your business intends to hire employees in Portugal, compliance with Portuguese employment law is mandatory. Key areas of focus include:
Employment Contracts:
All employees must have a written employment contract, and these contracts should comply with local labor laws regarding wages, working hours, and employment conditions.Labor Rights:
Portuguese law guarantees certain rights to employees, including paid vacation (22 working days per year), public holidays, maternity and paternity leave, and protections against unfair dismissal.Work Permits for Foreign Employees:
If you plan to hire foreign nationals, you must ensure they have the proper work permits or residency visas. Non-EU workers will need a work visa, which requires sponsorship by the company.
5. Data Protection (GDPR)
Portugal is part of the European Union and must comply with the General Data Protection Regulation (GDPR). This regulation imposes strict rules on how companies handle and protect personal data, including customer and employee information.
Data Collection and Consent:
Companies must obtain explicit consent before collecting or processing personal data.Data Breach Reporting:
In the event of a data breach, companies must notify the relevant authorities within 72 hours and take appropriate measures to mitigate any harm.
6. Ongoing Compliance and Renewals
Compliance is not just a one-time process; it requires continuous monitoring and adherence to regulations. Key ongoing obligations include:
Annual Reporting:
Companies must file an annual tax return and submit financial statements to the relevant authorities.Licenses and Permits:
Depending on the nature of your business, you may need specific licenses or permits (e.g., for hospitality, food services, or construction). Make sure all licenses are up to date and renewed as necessary.Updates to Corporate Structure:
Any changes to the company’s structure, such as new shareholders, directors, or changes in share capital, must be reported to the Commercial Registry and updated accordingly.
Navigating Legal and Tax Compliance with Expert Support
Ensuring full legal and tax compliance can be complex, especially when operating in a foreign country. Our team of legal and tax professionals is here to guide you through every aspect of the process, from initial incorporation to ongoing compliance. We ensure your company meets all regulatory obligations, allowing you to focus on growing your business while staying in line with Portuguese law.
Incorporating your company, branch, or subsidiary in Portugal involves a number of legal steps and formalities. This process can be streamlined with the right guidance and support. Below is a detailed outline of the key steps involved in setting up your business in Portugal, from initial preparation to final registration.
1. Initial Consultation and Planning
The first step is a detailed consultation to understand your business goals and identify the most suitable business structure. Whether you’re setting up a new company, a subsidiary, or a branch, we’ll help you assess the best fit based on your operational needs, investment goals, and liability considerations. During this stage, we will also discuss:
- Entity type (Private Limited Company, Public Limited Company, Branch, Subsidiary, etc.)
- Shareholder and director requirements
- Capital requirements
- Regulatory considerations depending on your industry
2. Obtaining a Portuguese Tax ID (NIF)
Before you can incorporate a company in Portugal, both the company’s shareholders (individuals or companies) and directors need to have a Portuguese Tax Identification Number (NIF). Our team will handle the process of obtaining the NIF on your behalf, ensuring all stakeholders are set up correctly for the next steps.
3. Drafting the Articles of Association
The Articles of Association are a key legal document that outlines your company’s structure, governance, and operating guidelines. This document typically includes:
- Company name and legal form
- Business activity
- Share capital and share distribution
- Responsibilities of directors and shareholders
- Voting rights and decision-making processes
Our legal team will help draft and notarize this document, ensuring that it complies with Portuguese law and meets your business needs.
4. Company Name Registration and Reservation
You will need to register your company name with the National Registry of Legal Entities (RNPC) to ensure that your chosen name is unique and not already in use by another entity. We will manage this process for you, including submitting your name options and ensuring the chosen name is reserved for your business.
5. Commercial Registration
Next, your company must be registered with the Commercial Registry Office (Conservatória do Registo Comercial). This official registration gives your company legal recognition in Portugal and allows it to operate formally. Our team will handle the submission of all necessary documents, including:
- Articles of Association
- Proof of share capital deposit
- NIF numbers of shareholders and directors
- Company name approval
6. Opening a Corporate Bank Account
To incorporate in Portugal, you will need a Portuguese corporate bank account. This account will be used to deposit your company’s share capital and handle business transactions. We will assist you in opening a business bank account remotely, working with our network of trusted banks to ensure the process is smooth and compliant with local banking regulations.
7. Depositing Share Capital
Once the bank account is set up, you will be required to deposit the minimum share capital as outlined in the Articles of Association. For most entities, this is €1 for an LDA, though typically higher amounts are deposited for practical purposes, and €50,000 for an SA (Public Limited Company). Proof of deposit is required to proceed with incorporation.
8. Registering for Tax and Social Security
After incorporation, your company will need to be registered with the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) and the Social Security Institute. This is necessary for paying corporate taxes, VAT (if applicable), and making social security contributions for employees. The key registrations include:
- VAT (Value-Added Tax) registration
- Corporate Income Tax (IRC) registration
- Social Security registration (if you have or plan to hire employees)
We will ensure your company is correctly registered and fully compliant with these obligations from the outset.
9. Registration of Beneficial Ownership
In Portugal, companies must declare their Ultimate Beneficial Owners (UBOs). This refers to individuals who directly or indirectly hold at least 25% of the shares or voting rights in the company. Our team will assist in submitting this information to the Central Register of Beneficial Ownership (RCBE), as required by law.
10. Obtaining Licenses and Permits
Depending on your business activity, you may need additional licenses or permits to operate legally in Portugal. For example, sectors such as construction, hospitality, and healthcare often require special authorizations. We will help you identify any necessary permits and handle the application process to ensure your business is fully licensed to operate.
11. Hiring Employees and Labor Law Compliance
If your company plans to hire employees in Portugal, you must comply with Portuguese labor laws. This includes providing employment contracts, registering employees for social security, and adhering to health and safety regulations. Our team can guide you through the process of:
- Drafting employment contracts
- Ensuring compliance with local labor laws
- Registering employees for social security and tax purposes
12. Final Review and Launch
Once all the steps are completed, your company will be fully incorporated and ready to operate in Portugal. We will conduct a final review to ensure everything is in order, including confirming tax registration, social security compliance, and any additional regulatory requirements. From this point, your company can begin its operations legally in Portugal.
Our Support Throughout the Incorporation Process
Incorporating a company or branch in Portugal involves several legal steps, but with the right guidance, it can be a straightforward process. Our team of legal, financial, and business experts will be with you every step of the way, from the initial consultation to the final registration. We streamline the incorporation process to ensure your business is up and running smoothly, so you can focus on your growth and operations in Portugal.
Incorporating a company or branch in Portugal involves several government fees at different stages of the process. Below is a breakdown of the typical costs you can expect.
1. Company Incorporation Costs
Physical Incorporation (« Empresa na Hora »): €360
Fast-track, on-the-spot incorporation.Online Incorporation (« Empresa Online »): €220
Incorporation with pre-approved articles of association, typically processed within 2 months.
2. Additional Corporate Name Costs
Name Request (Standard): €75
Standard name request process, which can take up to 2-3 months, depending on the backlog.Urgent Name Request: €150
Urgent name approval, processed within 48 hours.
3. Additional Costs for Branch or Subsidiary
- NIPC (Tax Identification Number for Collective Entities): €50
Required for the incorporation of a branch or subsidiary when the parent company is foreign.
How it works?
OnBoarding
We’ll start with an initial consultation to understand your business goals and the type of entity you wish to establish. During the onboarding call, we’ll outline the key steps, required documents, and set a clear timeline to ensure a smooth process.
NIPC Request (for Branch or Subsidiary)
For a branch or subsidiary of a foreign company, the first step is to request the NIPC (Tax Identification Number for Collective Entities). This is required before proceeding with any other formalities, including the company name registration.
Name Request
We will submit your company’s name request. You can choose between the standard process, which may take 2-3 months, or the urgent process, which typically takes 48 hours.
Sign your Power of Attorney
This allows us to incorporate your company on your behalf.
Application Submission
Once all the required documents are gathered, we will proceed with the application submission to the Commercial Registry. This step officially registers your company or branch in Portugal.
Bank Account Opening
Once the company is incorporated, open a corporate bank account to manage finances and conduct business operations in Portugal.
Final Registration
Complete registration with the Tax Authorities (Finanças), Social Security, and the Central Register of Beneficial Ownership to ensure full compliance and enable your company to operate legally in Portugal.
still some questions?
FAQ
What are the main types of business entities I can incorporate in Portugal?
You can choose between several business structures, including:
- Private Limited Company (LDA): Ideal for small to medium-sized businesses.
- Public Limited Company (SA): Suitable for larger companies, often used for businesses planning to go public.
- Branch: A foreign company's extension operating in Portugal, with full liability remaining with the parent company.
- Subsidiary: A separate legal entity controlled by a foreign parent company.
What is the difference between a branch and a subsidiary?
A branch is not a separate legal entity from its parent company, meaning the parent company is fully liable for its operations in Portugal. A subsidiary, on the other hand, is a distinct legal entity, which limits the liability of the parent company to its ownership stake in the subsidiary.
What documents are needed to incorporate a company in Portugal?
You will need:
- Identification documents (passports) of shareholders and directors.
- Portuguese Tax Identification Numbers (NIF) for shareholders and directors.
- Articles of Association outlining the company’s structure and purpose.
- Proof of share capital deposit (for certain types of entities).
- For branches or subsidiaries, documentation proving the parent company’s legal existence.
How long does it take to incorporate a company in Portugal?
Incorporation can be done in as little as 1 to 2 business days with the "Empresa na Hora" (on-the-spot incorporation) service. For online or custom incorporations, the process may take up to 2 months, depending on the complexity and name approval process.
Is it mandatory to have a Portuguese resident director?
No, it is not mandatory to have a Portuguese resident director. However, all directors must have a Portuguese Tax Identification Number (NIF), which we can help you obtain.
Do I need to open a bank account in Portugal before incorporation?
No, the bank account is usually opened after incorporation. Once the company is fully incorporated, you can open a corporate bank account to manage your business’s financial operations.
What are the ongoing legal and tax obligations after incorporation?
After incorporation, you must:
- Register with the Tax Authorities (Finanças) for corporate tax and VAT (if applicable).
- Register with Social Security.
- Submit annual tax returns and financial statements.
- Declare the company's Beneficial Owners to the Central Register.
Can I incorporate a company remotely from abroad?
Yes, the entire incorporation process can be managed remotely. We will handle the necessary paperwork, including obtaining the NIF, opening a bank account, and registering the company with the appropriate authorities.
What are the tax benefits of incorporating in Portugal?
Portugal offers competitive corporate tax rates, with a standard rate of 21%. Small and medium-sized enterprises (SMEs) may benefit from a reduced rate of 17% on the first €50,000 of taxable income. Additionally, companies may benefit from investment incentives and tax credits, depending on their industry and location.