Setting up a company in Portugal as a foreigner
The Portuguese regulatory framework is based on a principle of non-discrimination on the basis of the nationality of the investor, going very much in line with Article 24 of the 2008 OECD Model Convention, a situation that makes the Portuguese Republic a friendly country for foreign entrepreneurs wishing to establish themselves in Europe, living up to its nickname as the port of Europe.
To start a business in Portugal, you must first have a valid work permit or a type of visa that allows you to start a business.
Portuguese Residence Card: Non-EU citizens who want to start a business in Portugal as a foreigner or become self-employed must obtain a Portuguese work visa and a residence permit.
You could also invest money in Portugal and thus qualify for the Golden Visa program, designed to attract foreign investment, for more information you can access our article on the subject.
Once this issue is resolved, the next step would be
- Obtain a Social Security Number from the Portuguese Social Security.
- Obtain a Taxpayer Number from the Portuguese Tax Office.
- The name of the newly incorporated company in Portugal must be approved (it is also possible to choose a pre-approved name) in the National Register of Collective Entities (RNPC).
- Having an accountant and a bank account is mandatory for the formation of a company in Portugal.
To obtain a certificate of registration, the members of the company must submit an application attaching the articles of association, name approval certificate, copies of passports, sample signatures and special forms (the required documents may vary according to the case of each company as you can see in the table below), no later than 15 days after incorporation.
Subsequently, the Portuguese authority will deliver the corporate taxpayer number, the company’s social security number and the declaration of commencement of business activities. The entity’s employees must be registered at the Corporate Formalities Centers or at the Commercial Registration Offices 24 hours before they start activities in the company or, at the latest, 10 days after the declaration of the start of the business.
Types of structures you can choose to set up a company in Portugal as a foreigner
| Individual Investment Structures | | | | | | | | | | | | | | ------------------------------------ | --------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | Structure | Type of inverter | Main features | | | | | | | | | | | | Sole proprietorship | Personal Investor | ∙ Individual business, without legal personality ∙ Unlimited liability ∙ No capital stock required ∙ No bylaws ∙ A trade name is required (the investor’s personal name may be used). Individual establishment of limited liability | Personal Investor | ∙ Individual business, without legal personality ∙ Liability is limited to assets contributed autonomously to the business. ∙ Share capital required (minimum EUR 5,000). ∙ No bylaws ∙ A trade name is required: personal name of the investor + reference to the activity (not mandatory) + EIRL, alluding to the type of structure (mandatory). Sole proprietorship with limited liability | Personal investor or partnership | ∙ Company: activities through a corporation (with legal personality). ∙ Limited liability ∙ Share capital is required (minimum, EUR 1); only capital contributions (in cash or in kind) are allowed. ∙ Bylaws required ∙ A trade name is required: chosen name + reference to the field of activity (not mandatory) + Unipessoal (“unipersonal”) + Lda. (“limited partnership”) Sole proprietorship | Society | ∙ Company: activities through a corporation (with legal personality). ∙ Limited liability ∙ Share capital required (minimum EUR 50,000); only capital contributions (in cash or in specie) are allowed. ∙ Bylaws required ∙ A trade name is required: chosen name + reference to the field of activity (not mandatory) + S.A. (“sociedad anónima”). Branch | Society | ∙ Individual business through local representation (no incorporation of legal entity, branch subject to its mandatory registration). ∙ Liability under the legal personality of the investor. ∙ No capital stock required ∙ The bylaws are those of the investor. ∙ The trade name is that of the investor + Sucursal em Portugal (“branch in Portugal”). | Collective Investment Structures | | | Structure | Type of inverter | Main features | | | | | | | | | | | | Limited partnership | Individual or corporate investors | ∙ Company: activities through a corporation (with legal personality). ∙ Limited liability ∙ Minimum 2 members ∙ Mandatory share capital (minimum EUR 2), only capital contributions (or in kind) are allowed. ∙ Bylaws required ∙ A trade name is required: chosen name + reference to the field of activity (not mandatory) + Lda. (“limited partnership”) Public limited company | Individual or corporate investors | ∙ Company: activities through a corporation (with legal personality). ∙ Limited liability ∙ Minimum 5 members ∙ Share capital requirement (minimum EUR 50,000), only capital or in-kind contributions are permitted). ∙ Bylaws required ∙ A trade name is required: chosen name + reference to the field of activity (not mandatory) + S.A. (“sociedad anónima”). European company | Companies | ∙ Company: activities through a corporation (with legal personality). ∙ Limited liability ∙ Minimum 2 founders/partners. ∙ Share capital required (minimum EUR 120,000). ∙ Bylaws required ∙ Trade name required: chosen name + reference to field of activity (not mandatory) + SE (“European company”). ∙ Remark: European companies require their partners to be linked to more than one Member State. Joint Venture | Companies | ∙ A legal entity is not formed; the joint venture is formed by entering into a contract between the participating entities. ∙ Unlimited liability ∙ No capital stock required ∙ A joint venture agreement is required. ∙ Trade name not required Grouping of companies | Companies | ∙ Activities through a grouping (with legal personality). ∙ Unlimited liability ∙ No capital stock required ∙ Bylaws required ∙ Trade name required: trade name + ACE (“complementary grouping of companies”). Holdings | Individual investor(s) or company(ies) | ∙ Company subtype: holding companies are used to own equity interests through a company (with legal personality). ∙ Limited liability: holding companies may take the form of companies limited by shares or by shares. ∙ Share capital is required (minimum EUR 1 or EUR 50,000 depending on whether it is a company limited by shares or by shares); only capital contributions (in cash or in kind) are allowed. ∙ Bylaws required ∙ Trade name required: trade name + reference to the field of activity (not mandatory) SGPS (“sociedades gestoras de participaciones sociales” + Lda. or S.A. (depending on whether it is a limited or public limited company) #1 About the statutes to create a company in Portugal being a foreigner: The bylaws must contain: The name of the company The activity or activities of the company The name of the shareholders, their nationality and domicile Responsibilities and rights of the company’s directors Transferability of shares and allocation of shareholder rights Voting rights in the company and details on the dissolution procedure. In order to create a company in Portugal as a foreigner, it is extremely important to get the right advice from a lawyer. Cybergraphy #1 https://www.portugalglobal.pt/ES/InvertirenPortugal/Criareinstalar/Paginas/OInvestimentoEstrangeiroPortugal.aspx |