Are you considering starting a business in Portugal? If so, you have come to the right place, as Company Formation in Portugal is pretty simple. Portugal has become one of Europe’s most attractive destinations for entrepreneurs, thanks to its strategic location, robust infrastructure, and business-friendly regulations. Over the past few years, the country has seen impressive economic growth and increasing investment in innovation and technology. With a growing consumer base and a supportive startup environment, Portugal offers a golden opportunity for anyone looking to expand into European markets. Whether launching a new venture or scaling an existing one, now is the perfect time to take advantage of what Portugal offers.
This article will elucidate the benefits of starting a business in Portugal, the necessary procedures to follow, and more.
Steps to Start a Business in Portugal?
Starting a business in Portugal is a straightforward process, and here are the essential steps to help you get started:
- Choose Business Type:
Before registering your business in Portugal, you need to choose the type of business entity you wish to establish. The basic options include sole proprietorship, partnerships, limited liability companies (LLC), and public limited companies (PLC).
- Choose a Business Name:
Choose a unique name for starting a Business in Portugal. Make sure that it is not already taken by someone else.
- Procure a Fiscal Number:
You would require a fiscal number for tax purposes.
- Open a Bank Account:
Afterwards, you would need to open a business bank account in Portugal. This will allow you to manage your finances and business transactions properly. - Register Your Business:
You must register your business with the Portuguese commercial registry. However, this also includes the submission of mandatory documents and payment of the registration fees.
- Comply with Licensing and Permits:
You would require licenses or permits based on your business type and industry. It is important to note that you comprehend and comply with all legal requirements.
- Register for Social Security:
You must register your business with the Portuguese social security system to keep staff.
- Tax Registration:
You must register your business for taxation with the Portuguese Tax Authority, which includes procuring a VAT number (NIF-IVA) if applicable.
- Hiring Employees:
You must understand Portugal’s labour and employment laws and regulations to hire employees.
- Stay in the loop:
You must keep updated about Portugal’s latest business laws and regulations to ensure everything is compliant.
Benefits of Expanding your business to Portugal:
Portugal has recently gained popularity and is recognised as the ideal country for investment. Let’s explore why Portugal is no longer just a tourist paradise but also an admirable destination for launching a business.
- Access to the European Market:
If you are a member of the European Union and the Schengen Area, then Portugal could be the best start for your Company Formation. Many investors choose this country due to its Golden Residence Permit Program. This permits foreigners to move there easily, and one of the investment options is launching a business and creating at least five full-time jobs. The minimum investment amount for this option is £500,000.
However, there are other options too for the investors to get a Portuguese Golden Visa that include:
- Supporting arts and cultural heritage £250,000
- Purchasing investment fund units £500,000
- Investing in research£500,000
- Transferring capital £1,500,000
The best part about getting a Portugal Golden visa is that it does not require you to learn Portuguese. Moreover, a foreigner must spend 7 days a year in Portugal to maintain residency, and investors can get Portuguese citizenship in just 5 years. In addition to this, there is also no need to reside in the country to qualify for the passport.
- Beneficial Tax System:
Portugal offers tax benefits, ensuring the protection of your interests. The foremost benefit of Portugal is the participation exemption regime, which allows dividends paid to companies by their subsidiaries to be exempt from taxation. Any capital gains from the sale of shareholdings in subsidiary companies are also exempt from tax. Portugal imposes a corporate income tax (IRC) rate of 20% on its companies.
- Advanced Infrastructure:
The advanced infrastructure permits businesses to transport goods easily and promptly. It also offers numerous companies the opportunity to travel to Europe, as visiting Madrid or Paris in a few hours is easy. London, which is known as the world’s financial capital, could also be reached within 3 hours. However, along with discounts, bus and railway tickets are also budget-friendly in Portugal.
- Multiple Residence Permits:
If you are an outsider and wish for Company Formation in Portugal, then procuring a residence permit is one of the first things to consider. The permit is specifically made for entrepreneurs and investors, making the permit-making process easy and quick. However, the Start-up visa is a residence permit designed for international entrepreneurs and investors. Suppose you wish to be eligible for this. In that case, you need to show that your business idea is innovative and has the potential to offer jobs and contribute to the Portuguese economy. Another option is for entrepreneurs who aspire to start a. Business in Portugal or for remote workers who come all the way to live in Portugal. Enjoying all these benefits means making it possible to enjoy the fact that Portugal offers as a destination for entrepreneurship and innovation.
- Skilled Workforce:
One of the most significant factors making Portugal the best choice is the substantial government investment in education and research. Portuguese universities and research centres educate individuals, enabling them to become engineers, scientists, and managers, while also acquiring other top talent. The workforce in Portugal is both productive and skilled, and they speak fluent English.
- Lower Business Cost:
Portugal is one of Europe’s most affordable countries. Lisbon is considered the cheapest city to live in compared to other capitals like Rome or Paris. The typical cost of registering a business in Portugal is around 400 pounds. If you are seeking an affordable business structure in Portugal, your options include a Private Limited Company or an LDA.
- Complete Safety & Stability:
Portugal is known as one of the safest countries in the world. The crime rate is low, and people are welcoming, inclusive, and tolerant. Portugal’s Mediterranean climate, fine gastronomy, and renowned wines make it one of the best countries for expatriates’ quality of life. Moreover, its stability is the main factor in attracting foreign investment, and the safest social environment complements a stable and reasonable political environment
- Trusted Partners:
Investing in a foreign country can be challenging sometimes, requiring proper local information, experience, and attentive and thorough follow-up. However, we can help you get complete services to establish and maintain your investments in Portugal’s best country. We can help you with everything so you can focus on your business without worrying about administrative, tax, or legal issues.
Final Thoughts:
It is worth noting that Portugal offers a compelling package to businesses and entrepreneurs looking for opportunities in 2025. Investing in Portugal requires partnering with an experienced firm that can help navigate the local business landscape, including business setup, accounting, tax compliance, procuring permits, and real estate matters. Reach out to us and see what wonders we do for you.