Madeira Company Formation

Your Gateway to Prestige and Offshore Benefits

Madeira, a stunning Portuguese island in the Atlantic, is increasingly recognized as a prestige offshore jurisdiction for Madeira company formation. It offers a unique blend of EU membership, a favorable tax regime, and a stable political environment, making it an attractive option for businesses and entrepreneurs seeking international expansion and tax optimization.

A Guide to Forming a Company in Madeira

Setting up a Madeira company can seem complex, but with the right guidance, it’s a straightforward process. This guide provides an overview of the key aspects:

Types of Companies for Non-Residents in Madeira

Madeira offers several company structures suitable for non-residents. The most common include:

• Sociedade por Quotas (Lda.): A private limited liability company, similar to an LLC. This is a popular choice for smaller businesses due to its flexibility and relatively simple setup.
• Sociedade Anónima (SA): A public limited liability company, similar to a corporation. This structure is better suited for larger businesses seeking to raise capital.
• International Business Centre (IBC) Company: Companies registered within the Madeira International Business Centre (MIBC) benefit from a reduced corporate income tax rate (currently 5%) on eligible income. This is a key driver for Madeira company formation.

Advantages of Madeira Company Formation for Non-Residents

• Low Corporate Tax Rate: The MIBC offers a significantly reduced corporate income tax rate of 5% on eligible income until 2027.
• EU Membership: Madeira is part of Portugal and the European Union, providing access to the EU market and its associated benefits.
• Tax Benefits: Besides the low corporate tax rate, Madeira offers exemptions from withholding taxes on dividends paid to non-resident shareholders (subject to certain conditions).
• Reputation: Madeira is a reputable jurisdiction with a stable legal and political system.
• Strategic Location: Its location in the Atlantic makes it a convenient hub for trade between Europe, Africa, and the Americas.
• Access to Double Taxation Treaties: Portugal has an extensive network of double taxation treaties, which can further reduce tax liabilities.

Disadvantages of Madeira Company Formation for Non-Residents

• Compliance Requirements: Like any EU jurisdiction, Madeira has specific compliance requirements, including annual audits and reporting.
• Substance Requirements: To benefit from the tax advantages, companies need to demonstrate substance in Madeira, such as having a physical office and employees.
• Initial Setup Costs: While not exorbitant, there are costs associated with company registration, legal fees, and ongoing compliance.
• Language Barrier: While English is widely spoken, knowledge of Portuguese can be beneficial.

What is Required for Madeira Company Registration?

The specific requirements vary depending on the chosen company structure, but generally include:

• Company Name: A unique company name that is approved by the Portuguese Registry.
• Shareholders and Directors: Details of the shareholders and directors, including their identification documents.
• Registered Office: A registered office address in Madeira.
• Share Capital: The amount of share capital and its distribution.
• Articles of Association: The company’s governing document.
• Tax Identification Number (NIF): Obtaining a NIF for the company and its directors/shareholders.

Procedure for Madeira Company Formation

1. Choose a Company Structure: Select the most appropriate company type for your business needs.
2. Reserve a Company Name: Submit a request to reserve your desired company name.
3. Prepare Documentation:
4. Prepare Documentation: Gather all required documentation, including identification, articles of association, and proof of address. This often involves notarization and apostille depending on the origin of the documents.
5. Deposit Share Capital: Deposit the required share capital into a Portuguese bank account.
6. Register the Company: Submit the application for registration to the Commercial Registry in Madeira.
7. Obtain a Tax Identification Number (NIF): Apply for a NIF for the company.
8. Open a Bank Account: Open a corporate bank account in Madeira.
9. Register for Social Security: Register the company and its employees with the Portuguese Social Security system.
10. Comply with Ongoing Requirements: Ensure ongoing compliance with tax and reporting obligations.

Timeframe for Madeira Company Formation

The timeframe for Madeira company formation can vary depending on the complexity of the structure and the efficiency of the registration process. Generally, it takes between 2 to 4 weeks to complete the registration process, assuming all documentation is in order. The MIBC registration may take longer due to the additional scrutiny.

How We May Help You with Our Professionals

Navigating the intricacies of Madeira company formation can be challenging, especially for non-residents. Our team of experienced professionals can provide comprehensive support throughout the entire process, including:

• Company Structure Advice: Helping you choose the most suitable company structure for your specific business needs and objectives.
• Name Reservation: Assisting with the company name reservation process.
• Document Preparation: Preparing and reviewing all necessary documentation to ensure compliance with Portuguese regulations.
• Company Registration: Handling the entire company registration process with the Commercial Registry.
• Tax Advice: Providing expert tax advice on optimizing your tax liabilities within the Madeira tax regime.
• Bank Account Opening: Assisting with opening a corporate bank account in Madeira.
• Registered Office Services: Providing a registered office address in Madeira.
• Compliance Services: Ensuring ongoing compliance with all legal and regulatory requirements, including accounting, auditing, and tax reporting.
• Substance Establishment: Assisting with establishing substance in Madeira to meet the requirements for the MIBC tax benefits, including office space and employee recruitment.
• Liaison with Authorities: Acting as a liaison between you and the Portuguese authorities.

By leveraging our expertise, you can streamline the Madeira company formation process, minimize potential risks, and maximize the benefits of this attractive offshore jurisdiction. Contact us today to discuss your specific needs and learn how we can help you establish your business in Madeira. We are dedicated to providing a seamless and efficient service, allowing you to focus on growing your business. We understand the nuances of the Madeira International Business Centre and can guide you through the application process to ensure you meet all the necessary criteria for benefiting from the reduced corporate tax rate. Let us be your trusted partner in your Madeira company formation journey.