How to Start a Small Business in Portugal
If you are interested in opening a company in Portugal, you can solicit guidance and assistance from our Portuguese company formation specialists.
Would you like to know the steps of starting a small business in Portugal? You may read the following lines and then access our online services for support. You can benefit from the assistance of our Portuguese agents.
| Quick Facts | |
|---|---|
| Who can register companies in Portugal | Local and foreign entrepreneurs |
Types of companies | – private and public limited liability company, – general and limited partnership, – sole proprietorship |
Number of shareholders for LLC | At least 1 shareholder |
| Formalities for starting a business | – make a name reservation; – draft the Articles of Association; – appoint the board of managers; – apply for licenses and permits; – register for taxation |
| Minimum share capital (YES/NO) | Yes |
| Local corporate bank account | Yes, but not mandatory |
| Tax registration (YES/NO) | Yes |
| Time frame for starting a business | Around 2 weeks |
| Board of managers (YES/NO) | Yes |
| Legal representative (YES/NO) | Yes |
| Resident director required (YES/NO) | No |
| Office rent (YES/NO) | Yes |
| Possibility of hiring expats (YES/NO) | Yes |
| Annual financial statements required (YES/NO) | Yes |
| We provide support for business registration (YES/NO) | Yes |
What are the optimal business structures in Portugal?
- Sociedade Unipessoal por Quotas - Unipessoal Lda., or Single-Member LLC
- Sociedade por Quotas – LDA or the limited liability company.
The following infographic contains information on the steps for setting up a business in Portugal:
What is the minimum share capital required for an LLC in Portugal?
EUR 1 for LDA and Unipessoal Lda.
Would you like to know short facts about how to open a small business in Portugal? The following video might help:
Is the sole trader a business option for small entrepreneurs in Portugal?
Yes, this is also a good business choice. Read here the key conditions.
What are the general steps in opening a small business in Portugal?
- ensure a business address and a trade name, previously reserved,
- obtain NIF - the Portuguese Tax Identification Number,
- appoint a fiscal representative if you are an entrepreneur from a non-EU/EEA country,
- draft the Articles of Association,
- deposit the minimum share capital in a Portuguese bank account,
- apply for a business license in Portugal,
- register the Ultimate Beneficial Owners (UBOs),
- register for taxation with the Portuguese Tax and Customs Authority,
- register the staff with the Social Security in Portugal, etc.
NOTE: All foreign documents must be translated into Portuguese before submission.
Are there any extra approvals to obtain in Portugal as a small entrepreneur?
Yes, in accordance with the activities you want to develop, or the specific sector you wish to operate in.
Are virtual offices recommended for small businesses in Portugal?
Absolutely. Check our article here for more details about VOs in Portugal.
What is the taxation of companies in Portugal?
CIT or IRC in Portugal:
- 15% tax rate on the first EUR 50,000 of the company’s taxable profit,
- 5% tax rate for qualifying small & medium enterprises imposed on the first EUR 50,000 of taxable profit,
- 5% municipal tax, but it depends on the city/region where the small enterprise is registered.
NOTES:
- CIT in Madeira and Azores is 13.3%,
- CIT in Madeira Free Trade Zone is 5% for licensed companies within the International Business Centre of Madeira.
What is the VAT rate in Portugal?
- 23% standard rate in Portugal,
- 22% standard rate in Madeira,
- 16% standard rate in the Azores.
What is the time frame to start a small business in Portugal?
About 2-4 weeks.
What are the most recommended business sectors in Portugal for small entrepreneurs?
- e-commerce,
- tourism,
- food & hospitality,
- wellness services,
- consulting and many more.
Ready to explore more about how to start a small business in Portugal? Please contact our Portuguese agents today. You can benefit from assistance in opening a company in Portugal.
Gabriel Guimarães Barreto, Attorney at Law · 2 October 2026Gabriel has a law degree from Pontifícia Universidade Católica do Rio de Janeiro, and currently is a Master’s Degree candidate of Corporate Sciences at the University of Lisbon.