Portugal Company Formation
Portugal Company Formation: Your Gateway to European and International Success Main Characteristics and the basic rules of a Company registration in Portugal
Portugal Company Formation with BRIS Group
BRIS Group provides expert Portugal company formation services for entrepreneurs and international investors seeking a strategic base within the European Union. Setting up a company in Portugal offers access to the EU market, a favorable tax and business environment, and a skilled workforce — making it an attractive option for international business.
Our specialists handle the complete Portugal company registration process remotely, including corporate banking support, legal compliance, and ongoing administration. With BRIS Group, your Portuguese company will be fully compliant and ready to operate efficiently across Europe and globally.
Is it the Right Choice for You? A Guide for Non-Residents
Portugal has rapidly become one of Europe’s most attractive destinations for entrepreneurs, investors, and global companies seeking a balance between innovation, stability, and cost-efficiency. With its EU membership, competitive corporate tax regime, and business-friendly policies, Portugal company formation offers an excellent opportunity to establish a European base with access to both EU and international markets.
This SEO and AI-optimized guide provides a complete overview of company formation in Portugal, detailing the advantages, requirements, tax structure, and incorporation process for residents and non-residents alike.
Why Choose Portugal for Company Formation?
Portugal offers a strategic location, connecting Europe, Africa, and the Americas, along with an English-speaking workforce, robust legal system, and investment-friendly environment. The country’s tax incentives, residency options, and expanding tech ecosystem make it one of the most desirable jurisdictions in Europe for company incorporation.
Key Advantages of Portugal Company Formation
- EU Membership – Full access to the European Single Market.
- Favorable Tax Environment – Competitive corporate tax rates and special regimes for foreign investors.
- Political and Economic Stability – A secure and transparent EU jurisdiction.
- 100% Foreign Ownership – Non-residents can own and operate companies without restrictions.
- Residency Through Business – Entrepreneurs can obtain residency under the D2 or Golden Visa programs.
- Skilled Workforce – Multilingual professionals and strong educational infrastructure.
- Attractive Lifestyle and Cost of Living – Ideal for remote entrepreneurs and company directors.
Types of Companies in Portugal
|
Company Type |
Description |
|
Sociedade por Quotas (LDA) |
Equivalent to a Limited Liability Company; minimum share capital €1 per shareholder. Most common for SMEs and foreign investors. |
|
Sociedade Anónima (SA) |
Public Limited Company; suitable for larger businesses and investors. Minimum share capital €50,000. |
|
Sole Trader (Empresário em Nome Individual) |
Ideal for freelancers and small enterprises. |
|
Branch of a Foreign Company |
Allows foreign entities to operate in Portugal under their existing structure. |
Advantages of Portugal Company Formation for Non-Residents
|
Advantage |
Details |
|
Full EU Market Access |
Operate seamlessly across all EU countries. |
|
Low Minimum Capital |
Establish a company with as little as €1 in share capital for LDAs. |
|
Residency Benefits |
Gain access to residence permits through investment or entrepreneurship programs. |
|
Tax Incentives |
Special tax regimes for non-habitual residents (NHR) and Madeira International Business Centre. |
|
Modern Banking System |
Easy access to international and digital banking services. |
|
Double Taxation Treaties |
Agreements with over 70 countries to avoid double taxation. |
Requirements for Company Registration in Portugal
To set up a company in Portugal, you’ll need to meet the following requirements:
- Company Name Reservation – The name must be unique and approved by the National Registry of Collective Entities (RNPC).
- Registered Office – A physical or virtual address in Portugal is required.
- Shareholders – Minimum of one shareholder (individual or corporate, local or foreign).
- Directors – At least one director; can be non-resident.
- Company Secretary – Optional for LDA but required for SA companies.
- Minimum Share Capital –
- LDA: €1 per shareholder
- SA: €50,000 minimum
- Tax Identification Number (NIF) – Mandatory for all shareholders and directors.
- Corporate Bank Account – Needed to deposit share capital and conduct operations.
- Articles of Association – Defining the company’s internal rules and structure.
Step-by-Step Procedure for Portugal Company Formation
Step 1 – Initial Consultation and Planning
Determine your business goals and select the appropriate company type.
Step 2 – Obtain NIF (Tax Number)
All foreign shareholders and directors must acquire a Portuguese NIF.
Step 3 – Reserve the Company Name
Register your company name with the RNPC for approval.
Step 4 – Draft Articles of Association
Prepare and sign the company’s founding documents.
Step 5 – Deposit Share Capital
Open a corporate bank account and deposit the required share capital.
Step 6 – Register with the Commercial Registry
Submit all incorporation documents to the Commercial Registry (Conservatória do Registo Comercial).
Step 7 – Obtain Tax and Social Security Registration
Register with the Portuguese Tax Authority and Social Security office.
Step 8 – Apply for Business Licenses (if applicable)
Certain sectors may require specific operational licenses.
Timeframe for Company Formation in Portugal
|
Stage |
Process |
Estimated Duration |
|
Name Approval |
RNPC verification and reservation |
1–2 business days |
|
NIF Issuance |
Tax number registration |
1–3 business days |
|
Document Preparation |
Drafting and signing incorporation papers |
2–4 business days |
|
Company Registration |
Submission to Commercial Registry |
3–5 business days |
|
Tax & Social Registration |
Activation with authorities |
2–3 business days |
Total Estimated Time: 7–14 business days, depending on documentation readiness and company type.
Portugal Corporate Tax System
Portugal’s tax framework aligns with EU standards while offering multiple benefits for international investors and businesses.
Key Tax Highlights
- Corporate Tax Rate: 21% (standard rate); reduced to 17% for small and medium enterprises (SMEs).
- Municipal Surtax (Derrama): 0%–1.5%, depending on location.
- State Surtax: 3%–9% on profits exceeding €1.5 million.
- Dividend Withholding Tax: 25% (may be reduced under tax treaties or EU directives).
- VAT Rate: 23% standard (13% and 6% for reduced categories).
- No Wealth or Inheritance Tax for most investors.
- Madeira Free Trade Zone: Corporate tax rate reduced to 5% for eligible companies.
Compliance and Reporting
- Annual tax returns and audited financial statements required.
- Accounting standards based on IFRS and Portuguese GAAP.
- Full compliance with EU AML, FATCA, and CRS frameworks.
How We Can Help You
Our Portugal company formation specialists provide end-to-end assistance to ensure your business is established efficiently, legally, and strategically.
Our Services Include
- Business structure advisory and tax optimization planning.
- Company name reservation and legal document preparation.
- NIF registration and bank account opening assistance.
- Tax and VAT registration.
- Legal, accounting, and compliance support.
- Virtual office and registered address solutions.
- Residency and visa application support.
- Ongoing corporate maintenance and annual reporting services.
Start Your Portugal Company Formation Today
With its favorable tax incentives, strategic European access, and welcoming business climate, Portugal is one of Europe’s most promising destinations for global entrepreneurs and investors.
Our team of experts will guide you through every step of the incorporation process — from documentation to bank account setup — ensuring a seamless, compliant, and cost-effective formation experience.
Contact us today to begin your Portugal company formation journey and unlock your access to the European market and beyond.
Questions & Answers
1. What is the current corporation tax rate in Portugal?
As of 2023, the standard corporation tax rate in Portugal is 21%. However, this rate may vary for small and medium-sized enterprises (SMEs), which can benefit from a reduced rate of 17% on income up to €25,000.
2. How is personal income tax structured in Portugal?
Personal income tax in Portugal operates on a progressive scale. For 2023, the rates range from 14.5% to 48%, depending on the amount of taxable income. The first €7,112 is taxed at 14.5%, while income exceeding €80,640 is taxed at 48%.
3. What are the tax obligations for non-residents earning income in Portugal?
Non-residents in Portugal are subject to a flat income tax rate of 25% on income sourced within Portugal, such as rental income or capital gains. Certain types of income, like dividends, may be subject to different rates under specific treaties.
4. What is the VAT rate in Portugal?
The Value Added Tax (VAT) rate in Portugal is generally set at 23%. Reduced rates of 13% and 6% apply to certain goods and services, including food and transportation. Note that the Azores and Madeira have lower VAT rates.
5. Are there any exemptions from personal income tax for foreign residents?
Yes, under the Non-Habitual Resident (NHR) regime, specific foreign pension income and certain occupations may be exempt from Portuguese personal income tax for ten years. Eligibility criteria apply, so consulting a tax advisor is recommended.
Learn more: Visit our Full Frequently Asked Questions (FAQ) page
or contact our tax and company formation team at [email protected]
What types of companies can non-residents form in Portugal?
Non-residents in Portugal can establish various types of companies, with the most common being the Limited Liability Company (Sociedade por Quotas – Lda) and the Public Limited Company (Sociedade Anónima – S.A). The Lda is favored for small to medium-sized businesses due to its flexibility and limited liability. Non-residents can also opt for sole proprietorships; however, these do not provide the same level of liability protection. Certain activities may require specific company structures, so it’s advisable to consult with a local expert.
What are the benefits and advantages of forming a company in Portugal?
Forming a company in Portugal offers numerous benefits. The country boasts a stable economy, strategic location, and access to the European Union market, making it attractive for international business. Additionally, Portugal has favourable tax regimes, particularly for startups and SMEs, along with a friendly business environment. The growing tech investment scene and the ability to attract skilled talent add to the advantages. Moreover, residence in Portugal can lead to visa options for non-EU citizens, enhancing personal mobility.
What are the requirements for company formation in Portugal?
To establish a company in Portugal, non-residents need to comply with specific requirements. Essential documents include a valid passport, proof of address, a tax identification number from their home country, and at least one local resident who can act as a representative. It is also necessary to draft and notarise the company’s articles of association. Additionally, opening a bank account in Portugal for the company’s capital is essential. Businesses must also register with the Portuguese tax authorities and obtain any necessary licenses.
Are there any restrictions for non-residents when forming a company in Portugal?
Yes, there are certain restrictions that non-residents may encounter when setting up a business in Portugal. Some professions may require special licenses, and non-EU residents might face additional restrictions regarding ownership and company structure. Additionally, foreign entities wanting to engage in specific sectors like banking, insurance, and certain trade activities may have to meet more stringent regulatory compliance. It’s crucial to consult with local authorities or a legal expert to understand all applicable restrictions.
How long does it take to form a company in Portugal?
The process to form a company in Portugal can vary in duration depending on several factors. Generally, it takes between 1 to 3 weeks to finalize the registration after all documents are in place. The initial steps, such as obtaining a company name and tax number, can be done quickly online. However, additional time may be needed for sector-specific licenses or approvals. Ensuring all documentation is complete and accurate can significantly expedite the process.
Can I operate a business in Portugal as a non-resident?
Yes, non-residents can operate a business in Portugal after establishing a company. This allows them to engage in business activities legally. However, it’s mandatory for non-resident business owners to comply with local tax obligations and regulatory requirements. It’s advisable to enlist the help of local legal and financial advisors to navigate the regulations effectively. Additionally, being actively involved in the company can provide a pathway to residency options for long-term stays.
or contact our tax and company formation team at [email protected]