Set up Company in Portugal
Company formation in Portugal requires completing some actions before the company is ready to begin its activity. It is necessary for a new company in Portugal to draft the articles of association and all other documents such as passport copies, specimen signatures and special forms from the company registration office. Some public notary procedures also must be taken care of, as well as finding a registered office for company registration in Portugal. An accountant and a bank account are mandatory for company formation in Portugal.
TYPES OF COMPANIES
- Portuguese Private Limited Company (Sociedadepor Quotas - LDA) – this structure is recommended for small and medium sized companies in Portugal. It is actually the most common type of business in Portugal. A minimum share capital of 5,000 EUR has to be provided for company formation in Portugal and at least two members have to set up this type of company in Portugal.
- Portuguese Public Company (SociedadeAnónima SA) – a Portuguese SA is usually designated for large companies and requires at least 50,000 EUR as initial contribution. Its structure is a bit more complex than a LDA and it needs a minimum number of five shareholders in order to be set up. The liability of the founders is limited to the extent of their contribution.
- Portuguese Branch, Subsidiary or Representative Office – this type of company can be a separate entity in Portugal or an extension of the parent company.
INCORPORATION PROCEDURE IN PORTUGAL
Company formation is Portugal is usually not restricted for the residency of the shareholders, nor the directors in the management board of the company. Some supplementary documents might be needed however for members who are not residents in the European Union. Company formation in Portugal can be performed by a legal representative appointed by a power of attorney.
Company registration in Portugal is usually followed by the procedure of registration for VAT. This is only required for companies that are subject to VAT in Portugal. Local tax authorities must be informed of the company formation in Portugal and after that, an application form must be submitted, together with the articles of association, registration certificate and other details about the shareholders. A VAT number is received after company registration in Portugal.
After company registration in Portugal is completed, the company is ready to begin activity and must hire personnel. In order for the decisions to be made according to the job descriptions, company representatives may choose to use specialized websites or recruitment agencies. This way, the criteria for choosing the right employees is more likely to be met. Anyhow, an employer has to know that the average salary in Luxembourg for an employee is 1,600 EUR per month.
ECONOMY OVERVIEW IN PORTUGAL
Portugal’s economy is mainly based on agriculture, tourism and trade. As a matter of fact, Portugal is an important partner in international trading. Besides, Portugal is well-known for its production of cork oak and olive oil.
Incentives are offered for foreign company formation in Portugal, such as the development of renewable energies, specifically solar energy. Moreover, foreign investors can ask for help at the Agency for Investments and External Commerce in Portugal in order to find out more about the company formation in Portugal.
Foreign company formation in Portugal represents approximately 2.5% of the Gross Domestic Product over the past years. In 2008, the Bank of Portugal registered a sum of 31.9 million EUR from foreign investments in Portugal. The main investors in Portugal are Germany, UK, Spain, France and the Netherlands.
Partners: Company Formation Switzerland