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Portugal

Steps to Set Up a Company:

Portugal

Choose a Business Structure

  1. Sole Trader (Empresário em Nome Individual): Single owner, full liability.
  2. General Partnership (Sociedade em Nome Colectivo - SNC): Two or more partners, shared liability.
  3. Limited Partnership (Sociedade em Comandita - SC): General and limited partners.
  4. Private Limited Liability Company (Sociedade por Quotas - Lda.): Separate legal entity, limited liability.
  5. Public Limited Company (Sociedade Anónima - SA): Separate legal entity, limited liability, shares can be traded publicly.
  6. Branch (Sucursal): A branch of a foreign company operating in Portugal.
  7. Representative Office (Representação Permanente): Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

  1. Choose a Company Name: Ensure it is unique and follows naming regulations.
  2. Prepare the Articles of Association: Outlining the company’s structure and rules.
  3. Notarize the Articles of Association: Required for certain company types.
  4. Open a Bank Account: Deposit the initial capital required for the company type.
  5. Register with the Commercial Registry (Registo Comercial): Submit the incorporation documents and pay the registration fee.
  6. Obtain a Tax Identification Number (NIF) from the Tax Authority (Autoridade Tributária e Aduaneira): For tax purposes.
  7. Register for Value Added Tax (VAT) with the Tax Authority: If applicable.

Open a Portuguese Bank Account

  1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

  1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.

Comply with Portuguese Employment Laws

  1. Employment Contracts: Draft contracts that comply with Portuguese labor laws.
  2. Register with the Social Security Institute (Instituto da Segurança Social - ISS): For social security purposes.
  3. Health and Safety Regulations: Follow guidelines from the Authority for Working Conditions (Autoridade para as Condições do Trabalho - ACT).

Accounting and Reporting

  1. Set Up an Accounting System: Maintain accurate financial records in compliance with Portuguese accounting standards.
  2. Annual Financial Statements: Prepare and file annual financial statements.
  3. File Annual Tax Returns: Submit annual tax returns to the Tax Authority.

 

Laws and Regulations to Consider

Corporate Law

  1. Commercial Companies Code (Código das Sociedades Comerciais): Governs the formation and operation of companies.
  2. Civil Code (Código Civil): Governs contracts and obligations.

Tax Law

  1. Corporate Income Tax Code (Código do Imposto sobre o Rendimento das Pessoas Colectivas - IRC): Governs corporate income taxation.
  2. Value Added Tax (VAT) Code (Código do Imposto sobre o Valor Acrescentado - IVA): Governs VAT regulations.

Employment Law

  1. Labour Code (Código do Trabalho): Governs the terms and conditions of employment contracts.
  2. Social Security Code (Código dos Regimes Contributivos do Sistema Previdencial de Segurança Social): Governs social security contributions.
  3. Occupational Health and Safety Law (Lei n.º 102/2009): Sets health and safety standards for workplaces.

Data Protection Law

  1. Data Protection Law (Lei de Proteção de Dados Pessoais - Lei n.º 58/2019): Governs data protection and privacy.

Environmental Law

  1. Environmental Protection Law (Lei de Bases do Ambiente - Lei n.º 19/2014): Governs environmental protection and sustainability practices.

Intellectual Property Law

  1. Industrial Property Code (Código da Propriedade Industrial): Governs the protection of patents, trademarks, and industrial designs.
  2. Copyright and Related Rights Code (Código do Direito de Autor e dos Direitos Conexos): Governs the protection of copyrights.

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Portugal. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.

When to Consider Setting Up a Company in Portugal:

  1. Strategic Geographic Location: Portugal’s location provides access to markets in Europe, Africa, and the Americas.
  2. Favorable Tax Regime: Portugal offers a competitive tax regime and various tax incentives for businesses.
  3. Stable Political and Economic Environment: Portugal provides a stable political and economic environment conducive to business operations.
  4. Skilled Workforce: Access to a highly educated and skilled labour pool, particularly in technology, engineering, and services.
  5. Developed Infrastructure: Portugal has a well-developed infrastructure, including transportation, telecommunications, and energy.
  6. Innovation and Technology: Portugal has a strong focus on innovation and technology, with numerous research institutions and tech hubs.
  7. Quality of Life: Portugal offers a high standard of living, excellent healthcare, and a vibrant cultural scene, making it attractive for expatriates and international employees.
  8. Access to EU Market: As an EU member state, Portugal provides access to the EU single market, facilitating trade and business operations within the EU.
  9. Support for Startups: Portugal has a growing startup ecosystem with various support programs and incentives for new businesses.

By considering these factors and aligning them with your business goals, you can determine if setting up a company in Portugal is the right move for your organization.

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.