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Company Formation Portugal



Main Reasons for Doing Business in Portugal

Updated on Sunday 18th April 2021

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Main reasons for doing business in Portugal.jpgDoing business in Portugal as a foreigner is not complicated if the regulations mentioned by the Company Act and other sets of laws are respected. The legislation related to foreign investments offers equal rights to local and international entrepreneurs in Portugal. We present you a few reasons why starting a business in Portugal is beneficial, mentioning that our Portuguese company formation agents can manage the formalities involved.

1. The registration process of a company is simple and fast

In most cases, a LDA or the Portuguese variant of a limited liability company represents the main business structure. The incorporation is simple if two shareholders get involved and deposit a minimum share capital of EUR 5,000 in a bank account in Portugal. There is also the possibility of registering a public company or sociedade anonima that requires a minimum share capital of EUR 50,000 and at least 5 stockholders. The Articles of Association are the main documents of a company in Portugal that provide information about the owners of the business, place of operations, general rules, voting rights, and more. The lack of complexities for company registration in Portugal is one of the business advantages very much appreciated by investors from overseas. If you need help for business registration in Portugal, please feel free to discuss all the aspects with our company formation specialists in Portugal.

2. Portugal enjoys an excellent geographical location

Portugal is part of the Iberian Peninsula and is an extremely appreciated country from this point of view. The country is known for its excellent wines that take the export road in overwhelming proportions, but also for the quality gastronomic products that can be found all over the world. What makes it interesting and attractive from this point of view is the optimal climate for a prolific agricultural sector. In addition, Portugal is connected by air, sea, and land with all continents of the world from a business point of view. This is another strong reason for doing business in Portugal.

3. The labor force is appreciated by foreign investors

Business people who want to develop their operations in Portugal can benefit from an experienced and multilingual workforce. Quality is the strongest point of this sector, so do not hesitate to hire a local workforce if you plan to grow your business in Portugal.

4. The real estate sector is constantly expanding

The real estate market in Portugal is extremely prolific and attractive for foreign investors who know what kind of profits this sector can generate. It is quite simple to set up a construction company in Portugal or a real estate agency to address both tourists and those who want to relocate to Portugal. The luxury real estate sector is the most representative in Portugal and is addressed to those who want to make major investments of hundreds of thousands of euros and benefit from multiple advantages offered by the state. Those who want to open their real estate businesses in Portugal can talk to our specialists. There are many reasons for doing business in Portugal and this is one of them.

5. Investment incentives offered in Portugal are appealing

Several incentives are being offered by the Portuguese government to businessmen abroad to encourage investment as much as possible. Here, an important role is played by the corporate tax regime, which is one of the most advantageous in Europe. Many tax cuts apply to companies at the beginning of the road but also to those who reinvest the profits in the company. This is another excellent reason for doing business in Portugal. If you would like to open a company in Portugal, feel free to discuss with our specialists and solicit assistance.
We present you some statistical figures that underline both the Portuguese economy and the business direction:
  1. More than EUR 161 billion represented the total FDI of Portugal in 2019.
  2. According to the 2020 Doing Business report, Portugal ranked 39th out of 190 worldwide economies in matters of ease of doing business.
  3. Most of the FDIs registered in 2018 in Portugal were absorbed by the financial and insurance sector.
  4. The Netherlands directed more than 20% of the total FDI in Portugal, being the main investor of the country.
  5. Right after the Netherlands, Spain, UK, France, Germany, Luxembourg, Brazil and Belgium are other important countries than direct huge investments in Portugal.
Foreign investors interested in doing business in Portugal can get in touch with our specialists. We are here to offer the necessary help for company registration and more.

Meet us in Lisbon


Call us now at +351 21 020 0969  to set up an appointment with Federico Richardson, the head of Lexidy Law Boutique SLP. Alternatively you can incorporate your company without traveling to Portugal. As our client, you will beneficiate from the joint expertize of local lawyers and international consultants. Furthermore we offer you the following:

- cost-efficiency: competitive company formation prices;

- prompt response to your inquiry (maxim 24 hours);

- free and complete legal information featured on our site, at your disposal.

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The team from CompanyFormationPortugal.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.

Mihai Cuc, Partner of
Enescu&Cuc; Law Firm

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