Portuguese Company Formation
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Portugal’s geographical location is one of its major attractions to foreign investors, facilitating trade between Europe and the Americas. The country also has an open economy and liberal regulatory environment, and foreign investment is encouraged by a range of financial incentives. Portugal also boasts the Madeira Free Trade Zone which counters the country’s relatively high tax regime by offering a reduced Corporation Tax of between 4% and 12.5%.
Universal Company Incorporations has extensive knowledge and expertise in Portuguese company formation. Our team of local specialists will support your business with every aspect of its Portuguese incorporation, and are focused on your specific business requirements to save you time and money.
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Further Information
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Company formation in Portugal is simple, with two main forms for foreign investors to incorporate:
- Public Company (S.A.) – this is the standard format for larger businesses and has more demanding incorporation requirements, including five shareholders and stringent accounting and auditing requirements
- Private Limited Company (Lda) – this is the most popular format for small and medium businesses and has much more accessible requirements, including a share capital of just €1.
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The Portuguese regulatory environment maintains EU standards as well as a liberal economy, a combination that forms a structured but relaxed business centre. There are no restrictions on foreign investment in the country, no constraints on the repatriation of profits or dividends, and no controls over capital entering the country.
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The banking centre in Portugal offers a comprehensive range of business banking facilities. All major international banks are represented in the country and there are also a number of local banks providing international investment and banking facilities. A local bank account must be set up during incorporation.
Portugal offers a range of generous financial incentives. Foreign investors involved in large investment projects or business proposals encouraging areas such as tourism, science and the environment can take advantage of EU funds backed by the Portuguese government.
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Labour laws in Portugal are relatively strict and are mainly concerned with the protection of employees. As an employer legal support is advised when drawing up a contractual arrangement. The various recruitment specialists in Portugal’s highly developed recruitment industry provide expert support with staff recruitment.
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