Establishing a Company in Portugal
The Portuguese Republic is located in the southwest of Europe, situated to the shores of the Atlantic Ocean. In addition, Portugal maintains sovereignty over two groups of Islands in the Atlantic, the Azores and Madeira. The nation’s capital is Lisbon, its spoken language is Portuguese and Catholic Christianity is the dominant religion. Portugal’s location along the coast and its control over key trade routes, helped the country become both a land and a sea-based power in the 15th and 16th centuries, with colonies in South America, Africa, and East Asia. Similarly, Portugal of the time sent out expeditions across globe led by famous explorers that discovered previously unknown marine routes. Through to the present, Portugal is known for exquisite beaches, that serve as popular tourist destinations.
In 1976 Portugal became and continues to be a democratic republic, and it has been a member of the European Union since 1986 – a significant advantage for companies seeking a entryway to the Union’s member countries.
- Football (soccer) is one of the country’s most popular sports. Portugal’s national team was first established in 1921, and its best achievement to date is winning the 2016 Euro Cup title.
- The portraits of 32 new world explorers, including iconic figures such as Vasco da Gama, Ferdinand Magellan, and Pedro Cabral, are immortalized in the “Padrão dos Descobrimentos” (Discoveries Monument) in Lisbon, sculpted as a colossal ship located on the very edge of the water.
- The Livraria Lello in Porto is considered to be one the world’s most beautiful libraries, and its design was the basis for the accounts of the Hogwarts school library in the Harry Potter books.
Portugal’s economic activity was traditionally agrarian, including fruit and vegetable crops, winemaking and fishing, and was based, as well, on its merchant fleet. Beginning in the 60s, Portugal witnessed an industrial development boom, including iron and steel, oil refineries, and petrochemical industry.
Portugal joined the European Union In 1986 and adopted the Euro as its currency in 1999. However, for a period of 25 years, Portugal was ranked amongst the Eurozone’s weakest economies and suffered from heavy external debt that threatened its economic stability and even brought the country to the brink of bankruptcy in 2011. 2015 marked a dramatic turning point, stemming from sweeping political and economic changes, foremost of which was the lowering of the barriers to naturalization and accelerated development of the tourism market. These changes caused foreign currency to pour into the state’s coffers, boosted investments in real-estate, and became some of the country’s largest growth engines. Today, Portuguese citizens are enjoying a constant rise in their standard of living, and with it the scope of business opportunities across all economic activities are growing as well, especially real-estate investments and tourism initiatives. Establishing a company in Portugal let’s you benefit from the state-sponsored easements provided to investors and to take part in the surge in Portugal’s economy.
General
Type of company |
Private Limited Company (Lda) |
Relevant Companies Law |
Portuguese Commercial Code 1986 |
Offices |
Businesses are required to provide the authorities with the address of a local office. |
Language of original incorporation documents |
Portuguese |
Finance and Taxation
Currency |
Euro (EUR) |
Corporate tax rate |
21% |
Standard share capital |
EUR 5,000 |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Not required |
Obligation to appoint local secretary |
Not required |
Type of entity that may function as company secretary |
Not applicable |
Director |
|
Obligation to appoint company director |
Required |
Obligation to appoint local company director |
Not required |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual and / or a company |
Shareholders |
|
Obligation to register shareholders |
Required |
Obligation to register local shareholders |
Not required |
Minimum number of shareholders |
2 |
Type of entity that may register as shareholder |
Individual and / or a company |
Type of shares |
Registered shares |
Accessibility of Information
Company registrar |
Information regarding corporate officers is publicly accessible. |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Required |
Obligation to prepare financial reports |
Required |
Obligation to submit financial reports |
Required |
Accept
