Company formation in Portugal

Portugal is a country that has successfully overcome the consequences of economic crises and offers favorable conditions for businesses. It encourages foreign entrepreneurs, investors and digital nomads as it helps them to generate their income without the heavy daily administrative business and tax burdens many jurisdictions have.

Manimama ensures a seamless company registration process in Portugal. Trust us to provide expert guidance and support, so your business can thrive from day one in Portugal. Start your journey with confidence, knowing you have the best team by your side.

Portugal

Legal Opinion about Portugal as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama, CEO

"Portugal is an attractive jurisdiction for company formation due to its strategic location within the EU, and ease of incorporation. Portugal's robust legal framework and stable economy further enhance its appeal as a destination for business ventures".

Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Company Formation

€5,500

  • Company formation in Portugal
  • Opening a bank account
Order now

Additional services

€1,000

  • Registered address for 1 year
  • VAT registration
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Documents

€600

  • Apostille corporate documents (Certificate of incorporation and Articles of Association)
  • Document delivery
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Key Numbers about Portugal as a Jurisdiction for Company Formation

1 month

average term of company formation

аt least 1

shareholder in the company

аt least 1

director in the company

21%

corporate income tax (CIT) rate

up to 48%

personal income tax (PIT) rate

23%

value-added tax (VAT) rate

Set up Your Company in Portugal in Several Steps

Step 1. Initial Setup

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Company registration

  • Verification and reservation of the company name at the National Registry of Companies
  • Open a corporate bank account
  • Incorporating the company's data into the National Registry of Companies
  • Obtain a Portuguese tax identification number (NIF)

Requirements for Company Formation in Portugal

Before deciding to set up a new company in Portugal, read the information below to understand the characteristics of a Limited Liability Company (LLC) / Sociedade por Quotas (Limitada - Lda):

Shareholders: at least one shareholder (there are no legal restrictions on nationality or place of residence).

Director: at least one director (there are no legal restrictions on nationality or place of residence).

Minimum Share Capital: €1.

Liability: liabilities are limited to the amount invested.

Accounting: annual financial statements must be filed with the Finance Ministry.

Taxes in Portugal

Corporate income tax (CIT)

All companies earning income in Portugal are subject to CIT.



CIT rates:

  • 21% in mainland Portugal;
  • 20% in the Autonomous Region of Madeira;
  • 16.8% in the Autonomous Region of the Azores.

The reduced CIT rate of 12.5% applies to companies meeting standards, like:

  • carrying out business for a period of less than ten years;
  • employing less than 250 employees;
  • having an annual turnover not exceeding € 50 million;
  • the company should not result from a corporate reorganization of a non-qualifying company;
  • the company should not be held, in more than 50%, by a non-qualifying company.

The following requirements also must be met:

  • new start-ups are innovative companies with a high growth potential; or the National Agency of Innovation recognized that they develop competent R&D activities or certification of the process of recognition of companies in the technology sector;
  • have completed at least one round of venture capital financing or have had contributions of equity or quasi-equity from business angels;
  • have been granted funds from the Portuguese Development Bank, or funds managed by this entity, or by its subsidiaries, or from one of its equity or quasi-equity instruments.

For small or medium-sized enterprises which have an agricultural, commercial or industrial economic activity as their main activity, a rate of 17% applies to the first € 25 000, and the standard rate to the remainder.



Companies with no registered office or permanent establishment in Portugal are subject to a rate of 25%, except for the following income where the rate is 35%:

  • prizes from draws, lotteries, lottery games, or in any draw or competition;
  • income paid or made available in accounts opened in the name of one or more holders but on behalf of unidentified third parties;
  • income earned by companies established in a country, territory or region subject to a significantly more favorable tax scheme.
Personal income tax (PIT)

Personal income tax applies to the income of citizens resident in Portuguese territory and non-residents who earn income in Portugal.



PIT rates for residents:

  • up to €7,703 - 13.25%;
  • €7,703 – €11,623 - 18%;
  • €11,623 – €16,472 - 23%;
  • €16,472 – €21,321 - 26%;
  • €21,321 – €27,146 - 32.75%;
  • €27,146 – €39,791 - 37%;
  • €39,791 – €51,997 - 43.5%;
  • €51,997 – €81,199 - 45%;
  • over €81,199 - 48%.

Non-residents are taxed at a flat rate of 25% on their taxable remuneration (e.g. employment, self-employment, and pension income).



Value-added tax (VAT)

VAT in Portugal is payable by all businesses with a turnover of more than €14,500 on taxable goods and services.

In Portugal, there are three rates of VAT:

  • a reduced rate of 6% in mainland Portugal, 4% in the Autonomous Region of the Azores and 5% in the Autonomous Region of Madeira for goods and services in List I of the Value Added Tax Code;
  • an intermediate rate of 13% in mainland Portugal, 9% in the Autonomous Region of the Azores and 12% in the Autonomous Region of Madeira for goods and services in List II of the Value Added Tax Code;
  • a standard rate of 23% in mainland Portugal, 16% in the Autonomous Region of the Azores and 22% in the Autonomous Region of Madeira for all remaining goods and services.

Double taxation avoidance agreements in Portugal: Algeria, Andorra, Angola, Austria, Bahrain, Barbados, Belgium, Brazil, Bulgaria, Canada, Cape Verde, Chile, China, Colombia, Croatia, Cuba, Cyprus, Czech Republic, Denmark, East Timor, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Guinea-Bissau, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Ivory Coast, Japan, Kenya, Korea, Kuwait, Latvia, Lithuania, Luxembourg, Macau, Malta, México, Moldova, Montenegro, Morocco, Mozambique, Netherlands, Norway, Pakistan, Panama, Peru, Poland, Qatar, Romania, Russia, San Marino, Sao tome and Principe, Saudi Arabia, Senegal, Singapore, Slovakia, Slovenia, South Africa, Sultanate of Oman, Switzerland, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uruguay, Venezuela, Vietnam.

Start Your Company Formation Process with Manimama

There are numerous reasons why Manimama is the leading company formation agent in Portugal:

Expertise in Regulations of Portugal

  • 1. Manimama has an in-depth understanding of the legal and regulatory framework of Portugal.
  • 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

Local and International Experience

  • 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
  • 2. Our expertise spans various industries, providing customized solutions for each client.

Efficient and Timely Service

  • 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
  • 2. Our efficient processes minimize delays and get your business up and running quickly.

Client-Centric Approach

  • 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
  • 2. Our dedicated team is always available to address any concerns and provide expert advice.

Robust Network of Local Partners

  • 1. We have established strong relationships with local authorities, banks, and service providers.
  • 2. This network ensures that your business receives the best possible support and resources.

Ongoing Compliance Support

  • 1. We provide continuous support to ensure your business remains compliant with the laws of Portugal.
  • 2. Our team keeps you updated on any regulatory changes that may impact your company.

Frequently Asked Questions

  • What is the most popular type of company in Portugal?
    The most popular type of company in Portugal is the Sociedade por Quotas (LDA).
  • What are the minimum capital requirements to register a company in Portugal?
    An LDA typically requires a minimum share capital of €1.
  • What is the corporate tax structure for companies in Portugal?
    Corporate tax in Portugal is 21% for most companies, with reduced rates available for small and medium-sized enterprises (SMEs).
  • What advantages do foreign investors have when setting up a company in Portugal?
    Portugal offers access to the European market, competitive tax incentives, a skilled workforce, and various support programs for foreign investors.
  • Which sectors of the economy are most attractive for investment in Portugal?
    Renewable energy, tourism, real estate, technology, and manufacturing are among the sectors attracting significant investment in Portugal.
  • What tax incentives and exemptions are available for companies in Portugal?
    Incentives include reduced corporate tax rates for SMEs, tax credits for R&D activities.

Client Feedbacks

"Great experience working with the team at Manimama OU! Thanks to their assistance, we were able to avoid legal difficulties and achieve success in our affairs".

"Collaborating with Manimama OU proved to be highly professional and efficient. The firm's lawyers promptly addressed all the issues we brought forward and provided comprehensive consultations".

"Manimama OU is a reliable partner in legal matters. Through our joint efforts, our problems were successfully resolved".

Manimama as the Best Solution for Your Company Formation in Portugal

Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

Comprehensive Legal Expertise
Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

Results-Driven Approach
Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

Global Presence and Local Expertise
Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

Community Commitment
At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

By choosing our company formation service in Portugal, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Portugal and pave the way for your business success.

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.