There are many reasons to set up a company in Portugal. It offers a simplified process for setting up a company, and the tax rates are very attractive.
To start a business in Portugal, you need to register your company with the Portuguese Tax and Social Security Authorities. You can register your company online, but you will also need to submit some paperwork by post. The cost of registering your company is €100.
The process of starting up in Portugal is much simpler than in other countries in Europe as there is no minimum capital requirement or minimum shareholding requirement for private limited companies.
The Legal Requirements for Setting up Companies in Portugal
In Portugal, there are a number of legal requirements that need to be met before you can set up a company. For example, you will need to have the following:
- A minimum of 2 shareholders
- All the shareholders must be over 18 years old and have Portuguese citizenship or residency status in Portugal
- A minimum of €5,000 in capital (equity)
| Quick Facts | |
| Types of companies | Limited liability company joint-stock company limited partnership general partnership branches of foreign companies sold proprietorship |
| Minimum share capital for LTD Company | EUR 1 |
| Minimum number of shareholders for Limited Company | 2 |
| The time frame for the incorporation (approx.) | 2 weeks |
| Corporate tax rate | 21% |
| Dividend tax rate | 28% |
| VAT rate | 23%, a reduced rate of 13% also applies to certain goods |
| Number of double taxation treaties (approx.) | 52 |
| Do you supply a registered address? | Yes |
| Local director required | No |
| Annual meeting required | Yes |
| Re-domiciliation permitted | Yes |
| Electronic signature | Yes |
| Is accounting/annual return required? | Yes |
| Foreign-ownership allowed | Yes |
| Are any tax exemptions available? | Tax credits |
| Tax incentives | Regional incentives |
Start-Up Costs and Documents Necessary for Registering an Enterprise in Portugal
The registration process is fairly simple and straightforward. The company must be registered at the Portuguese Company Registry (Registo Nacional das Pessoas Colectivas – RNPCC) where it will be assigned a number, which is used in all subsequent dealings with the authorities.
The most important document needed for registration is the Articles of Association, which set out the objectives of the company, its legal form, and its management structure.
Taxes That You Must Pay When Starting A Business In Portugal
In Portugal, the taxation system is progressive, meaning that the higher your income is, the higher your tax rate will be. The tax rate for startups in Portugal is 25%.
The Portuguese government has implemented a new policy to encourage entrepreneurship. The “Startup Visa” gives entrepreneurs from outside of Portugal residency and work permits if they create a startup in Portugal.
Marketing Strategies For New Ventures In The Portuguese Market
Marketing is the most important aspect of any business, it is what drives the success of a company.
It is the process of communicating with the customers to achieve a desired response or action. It is not just about advertising and sales, it also includes things like public relations, customer service, and branding.
Conclusion
If you are looking to start a business in Portugal, you will need to familiarize yourself with the country’s immigration laws and business regulations. Here at 10 Pro Consulting, we are the leading experts in Portuguese immigration and can assist you with every step of the process. Contact us today for a free consultation to learn more about how we can help you set up your company in Portugal.
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