Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Portugal
In Portugal, both locals and foreigners are free to start a business of their choice, provided that they have the requisite permits and minimum capital investments. Not long ago, the country was hostile to foreign investors. The high levels of bureaucracy and red tapes made company registration in Portugal for foreigners a daunting task. However, things have since changed. The government is not only encouraging foreigners to do business in Portugal but made the company registration process easy. You don’t have to wait for weeks or months to have your new business up and running.
Business Entities Investors Can Register in Portugal
The Portuguese law allows for the formation of the following business entities in Portugal:
Private Limited Company
This is the most common type of investment vehicle that foreign and local investors like to register in Portugal. There have to be at least two founders and minimum share capital of EUR 5000. Just like with other limited liability entities, they limit the shareholders’ liabilities to the amounts of their share contributions.
Public Limited Company
It requires at least five shareholders and minimum share capital of EUR 50,000 for public limited company. They limit the liability of the shareholders to their contributions towards the share capital. The general meeting of the shareholder appoints a board of directors. They assure the management of the entity.
In a limited partnership, at least two partners are needed – one will be a general partner who will have the full liability for the obligations of the entity, while the other one will be a silent partner who will be responsible for providing the capital for the business.
A general partnership is another option for partners interested in company registration in Portugal. At least two partners, who will have full liabilities for the obligations of the business are necessary for the formation of this entity. The partners will also have equal responsibilities in the running of the business. There is no minimum share capital requirement for the formation of a general partnership.
The Process of Company Registration in Portugal
Before the commencement of company registration in Portugal, the promoters must check the National Registry of Collective Entities to see if their preferred company name is available. The company name has to be unique, and not in use by any other entity in Portugal.
The founders will then submit an official application, including the name approval and articles of associations to the authorities. Following the submission of the above, the company’s social security number, the corporate tax number and a declaration for the commencement of business activities will be issued by the authorities.
If the company hires employees, they must register with the Business Registry Office at least 24 hours before they report to work or no more than ten days after the declaration for the commencement of business.
Finally, the founders must notify the Labor Inspectorate about the existence of the new business by providing the name and tax number of the business, the headquarters’ address, a list of the company’s activities, and a copy of the announcement about the company’s incorporation.
Work With Us
The process of company registration in Portugal may sound overwhelming if you don’t know where to start or where to get the necessary incorporation documents. At 3E Accounting, our business is to help both local and foreign investors incorporate their preferred entities without any hassles. We are knowledgeable about the law and the business formation procedures in Portugal, and working with us will not just save you a lot of time, but also will ensure that you get things done right the first time. Contact us now and let us worry about registering your company in Portugal.