Madeira Company Formation
Madeira Company Formation – Your Gateway to Prestige and Offshore Success Main Characteristics and the basic rules of Company registration in Madeira
Madeira Company Formation with BRIS Group
BRIS Group offers expert Madeira company formation services for entrepreneurs and investors seeking a strategic base in Europe. Establishing a company in the Madeira International Business Centre (MIBC) provides access to a 5% corporate tax rate, EU membership benefits, and a reputable business environment. Our team handles the entire Madeira company registration process remotely, including assistance with corporate banking, compliance, and ongoing administration, ensuring your business operates efficiently and in full compliance with Madeira’s regulations.
 Start your Madeira company with BRIS Group today — trusted experts in global incorporation.
Madeira Company Formation – Guide for Non-Residents
Madeira, a breathtaking Portuguese island in the Atlantic Ocean, is gaining recognition as one of Europe’s most attractive jurisdictions for international company formation. Offering the dual advantage of European Union credibility and offshore-style tax benefits, Madeira presents a unique opportunity for entrepreneurs, investors, and multinational groups seeking to expand globally while optimizing taxation.
This comprehensive guide explores the benefits, requirements, and procedures of Madeira company formation for non-residents, along with expert insights on how to establish a compliant and efficient structure under the Madeira International Business Centre (MIBC) regime.
Why Choose Madeira for Your Company Formation?
Madeira offers the rare combination of EU prestige and offshore flexibility, making it ideal for holding, trading, and service-oriented structures.
Key advantages include:
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EU Membership & Reputation: Madeira operates under Portuguese law within the European Union — ensuring full compliance and global credibility.
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Reduced Corporate Tax Rate: Companies registered under the MIBC regime enjoy a 5% corporate tax rate on eligible international income (available until 2027).
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Access to Double Tax Treaties: Benefit from Portugal’s extensive network of double taxation treaties.
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Political & Economic Stability: Backed by Portugal’s robust economy and EU regulations.
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Strategic Location: Positioned between Europe, Africa, and the Americas — a gateway for global trade.
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Strong Legal and Banking Framework: Transparent legislation, advanced banking infrastructure, and straightforward business administration.
đź’ˇ Did You Know?
Madeira is the only European jurisdiction offering both EU compliance and an internationally competitive tax regime — a unique blend of legitimacy and optimization.
Types of Companies for Non-Residents in Madeira
Madeira offers several company structures suited to different business needs.
| Company Type | Description | Minimum Share Capital | Best For |
|---|---|---|---|
| Sociedade por Quotas (Lda.) | Private limited liability company (similar to an LLC). | €5,000 | Small and medium-sized businesses |
| Sociedade Anónima (SA) | Public limited company (similar to a corporation). | €50,000 | Larger enterprises and investors |
| Madeira International Business Centre (MIBC) Company | Companies licensed within the IBC, benefiting from a 5% tax rate on eligible income. | Varies | International trading, shipping, and holding activities |
Key Highlights of Madeira Company Formation
| Feature | Details |
|---|---|
| Jurisdiction | Autonomous Region of Madeira, Portugal |
| Corporate Tax (MIBC) | 5% on qualifying income until 2027 |
| Legal System | Based on Portuguese civil law |
| EU Member State | Yes |
| Corporate Substance | Required (office, local management, or employees) |
| Typical Formation Time | 2–4 weeks |
Advantages of Madeira Company Formation
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Low Taxation: Only 5% corporate income tax under MIBC.
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EU Standing: Benefit from full European Union compliance and reputation.
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No Withholding Tax: On dividends to non-residents (subject to EU directives and treaties).
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Asset Protection: Robust legal framework safeguards business and personal assets.
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Repatriation Freedom: 100% repatriation of profits and capital permitted.
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Access to EU Markets: Seamless trade and service access across Europe.
Potential Considerations
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Substance Requirements: Companies must maintain a real presence in Madeira (office, staff, or management).
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Compliance Costs: Annual accounting, audits, and filings are mandatory.
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Language: Portuguese documentation is standard (though English support is common).
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Setup Costs: Higher than purely offshore jurisdictions, but with stronger legitimacy.
Requirements for Company Registration in Madeira
To form a Madeira company, non-residents must prepare:
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Company name approval from the Portuguese Registry
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Valid identification (passports) of all shareholders and directors
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Registered office address in Madeira
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Proof of share capital deposit
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Articles of Association (in Portuguese)
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Tax Identification Number (NIF) for company and directors
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Proof of substance (lease agreement or office contract, if applying under MIBC)
Step-by-Step Procedure for Madeira Company Formation
1. Initial Consultation
Define your goals, business activity, and structure (Lda., SA, or MIBC).
2. Company Name Reservation
Submit your chosen name for approval.
3. Document Preparation
Draft Articles of Association, notarize, and legalize documents.
4. Deposit Share Capital
Open a Portuguese bank account and deposit capital.
5. Company Registration
File documents with the Madeira Commercial Registry.
6. Obtain NIF and Tax Registration
Register the company and directors for tax.
7. MIBC License (if applicable)
Apply for and obtain the MIBC approval.
8. Bank Account Setup
Establish a local or international business account.
9. Social Security Registration
Required if employing staff locally.
10. Commence Operations
Begin trading once all licenses and permits are granted.
How Our Experts Can Help You
Our professional team specializes in Madeira company registration for non-residents, offering a seamless, compliant, and tax-efficient setup experience.
Our services include:
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Strategic business structure planning and entity selection
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Document drafting, notarization, and submission
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Bank account opening and liaison with Portuguese banks
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Assistance with MIBC license applications
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Ongoing accounting, bookkeeping, and auditing
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Registered office and substance setup (physical or virtual)
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Tax and legal advisory services
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Ongoing compliance and renewal management
🔍 Need advice?
Our experts can guide you through your Madeira company formation, ensuring your business fully complies with Portuguese and EU regulations — while maximizing tax efficiency.
Why Work With BRIS GROUP
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Over 12 years’ experience in European company formation
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Deep expertise in Madeira’s International Business Centre
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Tailored solutions for non-resident entrepreneurs and investors
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Transparent pricing and fast turnaround times
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End-to-end support — from consultation to operation
Start Your Madeira Company Formation Today
Madeira offers a rare opportunity to combine offshore advantages with EU credibility — ideal for businesses seeking global reach with a solid legal foundation.
Contact our specialists today for a free consultation and discover how we can help you establish a Madeira companythat delivers stability, tax efficiency, and prestige.
Questions & Answers
1. What is the corporation tax rate in Madeira?
The corporation tax rate in Madeira is set at 21% for most companies. However, small and medium-sized enterprises (SMEs) benefit from a reduced rate of 17% on the first €15,000 of taxable income. This incentivizes business growth and investment within the region.
2. How is income tax structured in Madeira?
Income tax in Madeira operates on a progressive scale. The rates range from 14.5% to 48%, depending on income brackets. For instance, income up to €7,112 is taxed at 14.5%, while income above €80,000 incurs the highest rate of 48%. This structure aims to distribute the tax burden according to income levels.
3. Are there any taxes on non-residents’ income in Madeira?
Yes, non-residents earning income in Madeira are subject to a flat tax rate of 25% on their income. This applies to various types of income such as salaries, rental income, and investment returns. Non-residents should ensure compliance with local tax regulations to avoid penalties.
4. What is the VAT rate in Madeira?
The standard VAT rate in Madeira is 22%, with reduced rates of 12% and 6% applicable to specific goods and services, like basic food items and certain tourism-related services. Madeira also has a simplified VAT regime for small businesses with annual revenues below €10,000.
5. How do the tax rates in Madeira compare to the mainland Portugal?
Madeira typically offers lower tax rates compared to mainland Portugal, particularly for corporate tax and specific incentives for SMEs and non-residents. This makes Madeira an attractive location for businesses and individuals seeking favorable tax conditions while benefiting from the region’s strategic advantages.
Learn more: Visit our Full Madeira Company – FAQ page
or contact our tax and company formation team at[email protected]
Types of Companies for Non-Residents in Madeira
In Madeira, non-residents can establish various types of companies, including Limited Liability Companies (LLCs), which are popular due to their flexibility and limited liability protection. Non-resident investors may also consider setting up a Branch Office or a Representative Office. Each type has its specific regulations and benefits, tailored to different business needs and objectives, providing a solid foundation for foreign entrepreneurs looking to operate in the region.
Benefits and Advantages of Company Formation in Madeira
Establishing a company in Madeira offers numerous advantages, including a favorable tax regime with Corporate Tax rates as low as 5% for qualifying businesses. Additionally, Madeira, as an autonomous region of Portugal, provides access to the European market and various incentives for international investors. The strategic location, combined with a supporting infrastructure and skilled workforce, enhances the appeal for non-residents looking to leverage growth opportunities.
Requirements for Company Formation in Madeira
To form a company in Madeira, non-residents must prepare essential documentation, which includes a business plan, proof of identity, and other relevant business licenses. Additionally, a local registered office address is necessary. Non-residents must also open a bank account in Madeira to deposit the required share capital, which varies based on the type of company. It’s advisable to seek assistance from local professional services to ensure compliance with all legal requirements.
Restrictions for Non-Residents When Forming a Company in Madeira
While Madeira is welcoming to foreign investors, there are certain restrictions to be aware of. Non-residents must have a legal representative based in Portugal to facilitate the registration process. Some business sectors may impose additional regulations or require specific qualifications. It’s essential for non-residents to research their industry-specific guidelines and consult with legal advisors to navigate these restrictions effectively.
Time Frame for Company Formation in Madeira
The time required to establish a company in Madeira can vary depending on the type of company and completeness of documentation. Typically, the registration process can take anywhere from a few days to several weeks. Factors influencing the timeline include the speed of obtaining necessary permits, bank account setup, and any industry-specific procedures. Engaging local experts can expedite the process and ensure all steps are followed correctly.
What Are the Main Steps for Forming a Company in Madeira?
Forming a company in Madeira involves several key steps. First, choose the type of company you want to establish and prepare the necessary documentation. Next, you’ll need to reserve a company name and obtain any required licenses. Then, set up a local bank account where you’ll deposit the required share capital, followed by registering with the tax authorities and the local business registry. Lastly, ensure compliance with local regulations and complete ongoing requirements to maintain your company.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Madeira
Capital: Funchal
Region: An autonomous region of Portugal, is an archipelago comprising 4 islands off the northwest coast of Africa.
Language: Portuguese
Currency: Euro (EUR)
Time Zone: GMT+0
Dial Code: +291
Abbreviations: RAM
Helping Your Company Thrive in Madeira With us, starting and running a business in Madeira will be easy and efficient!
- Full support of the company’s registration in Madeira: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.