Portugal (officially called the Portuguese Republic) is a well-developed country located on the Iberian Peninsula. The main sectors of the country's economy include tourism, agriculture, metallurgy, mechanical engineering & textile industry.
Portugal ranks 10th in the category “Registration of companies”. Entrepreneurs choose this country for a number of reasons, including:
- low tax rates;
- business-friendly legislation;
- low operating costs;
- an investor-friendly government.
Economic experts call Portugal a new star of the Eurozone and predict a great future for it.
Looking to open a company in Portugal? Why not order a consultation on company registration in Portugal from YB Case experts? A wide range of services, as well as the availability of established contacts in this jurisdiction make setting up a company in Portugal a breeze for us.
Those planning to open a company in Portugal can do it using 2 forms, namely:
- Sociedade Limitada Lda;
- Sociedade anonima (Sociedade Aberta SA).
Being an analogue of LLC, LDA is the most popular business organization form. CJSC is an analogue of JSC and used for opening large businesses.
How to Register an LDA in Portugal?
Please note that our company provides comprehensive assistance in registration of a business in Portugal. Registration requirements include:
- having no less than 1 director;
- having no less than 2 participants;
- having 1 director.
Participants become owners of shares and have financial liabilities proportionate to the number of shares owned by them. There are no requirements for the share capital; however, the cost of each share must be at least 1 EUR. Only registered shares can be issued.
How to Set up a Sociedade Anonima (Sociedade Aberta SA)?
As mentioned above, this form is primarily used by large enterprises and includes the following requirements:
- having no less than 5 participants.
- having a share capital of no less than 50,000 EUR (depending on the type of business);
- paying 30% of the share capital at the time of registration, with the remainder being paid over time (but not later than in 5 years).
- a company must be managed by a Board of Directors;
- a company can only issue registered, ordinary, privileged and bearer shares;
- a company’s charter must be approved by the Registrar of companies.
Accounting and Auditing in Portugal
Those looking to set up a Portuguese company are required to submit an annual audit report. The company appoints a state auditor if 2 of 3 following conditions are fulfilled for 2 consecutive years (after opening the company):
- profit: EUR 3 million and more;
- net assets: EUR 1.5 million or more;
- number of employees: 50 people or more.
The tax rate for those interested in registering a company in Portugal is 23%.
Other taxes are:
- VAT - 23%;
- dividends tax - 20%;
- royalties tax: 15%..
Considering opening a Portuguese company? We can help you solve all problems related to opening a business abroad.
Other requirements for opening a company in Portugal include:
- providing a description of a company’s activities;
- providing a company’s name;
- having a charter;
- having a share capital and shareholders;
- shareholders must provide: a passport, confirmation of the residence address (e.g. a utility bill) & tax ID; if shareholders are individuals, they must specify their marital status; if they are married, they must provide a copy of their spouse's passport.
- remotely registering a company in Portugal may require providing additional documentation.
Please note that our experts will be happy to provide you with assistance in preparing all the necessary documents.
Considering setting up a company in Portugal? Need to open an account with a Portugal bank? Looking to do business in Europe or elsewhere in the world? Why not contact YB Case?
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