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Company Formation in Portugal

Company Formation and Taxes in Portugal

The company formation in Portugal offers many advantages.

Eder Herbert, the majority owner of consultancy group SLC

Portugal offers a place to form the branch office also after changes performed in the Middle and East Europe including great preferences for the Austrian companies and it is worth to be considered by selecting the company residence.

The preferences are represented by: low labour costs, with good management a high productivity, good infrastructure and finally the historical connections of Portugal with numerous former colonies.

Four company forms exist in Portugal:

  • sociedade em nome colectivo (approximately responds to the Public Company),
  • sociedade por quotas (Limited Liability Company),
  • sociedade anónimas (Joint Stock Company) and
  • sociedade em comandita (Limited Partnership).

The partners answer for the company liabilities with unlimited liability only in the Public Company (sociedade em nome colectivo) and in the Limited Partnership (sociedade em comandita simples).
The most common company forms in Portugal are the Limited Liability Company (sociedade por quotas) and the Joint Stock Company (sociedade anónimas).

No limits exist for the foreign capital. Only the projects concerning the public safety or health must be verified and permitted by the Associação Portuguêsa de Investimento (API). It is not necessary to have a Portugal partner thereto. The company will be classified as a firm with foreign capital, if its capital is controlled in more than 20 per cent by domestic persons, or in which the foreign persons hold more than 10 per cent of a company.

The regulation for reporting the investments, or statistic and administrative purposes thereof exist for foreign investors.

An average period required to form a company in Portugal, if one decides for very useful Centros de Formação de Empresa (CFE´s), is 23 days.
The costs arising at formation, regardless the corporation capital, amount approx. EUR 550 - the notarial fees, confirmation for registration, publishing in the newspaper Diário de República, etc.

Further information on company formation in Portugal

company formation, taxes, labour law, corporate law in Portugal

Trade Law in Portugal
Duty-Free Zone Madeira
Tax Law in Portugal
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