{"id":14965,"date":"2024-05-09T17:46:20","date_gmt":"2024-05-09T17:46:20","guid":{"rendered":"https:\/\/www.pmcg.pt\/?p=14965"},"modified":"2024-05-03T17:58:54","modified_gmt":"2024-05-03T17:58:54","slug":"setting-up-of-a-bussiness-structure-in-portugal","status":"publish","type":"post","link":"https:\/\/www.pmcg.pt\/en\/setting-up-of-a-bussiness-structure-in-portugal\/","title":{"rendered":"Setting Up of a Bussiness Structure in Portugal"},"content":{"rendered":"

\"\"<\/strong><\/h2>\n

Setting Up of a Bussiness Structure in Portugal<\/strong><\/h2>\n

Portugal is a renowned destination for business start-ups, notably favored by foreign based entrepreneurs. Divers incentives aimed at fostering small businesses, havebeen instituted by the Portuguese government, which are widely regarded as pivotal to the Portuguese economy’s foundation.<\/p>\n

To legally establish a business in Portugal, foreign nationals must fulfill several requirements:<\/p>\n

    \n
  1. Obtain a Portuguese residency card.<\/li>\n
  2. Acquire a local tax register number.<\/li>\n
  3. Obtain a local Social Security registry number.<\/li>\n
  4. Select a name for the business and provide a Portuguese address for company registration.<\/li>\n<\/ol>\n

    A. The “SET UP”<\/strong><\/p>\n

    To set up a company in Portugal, there are three primary methods available, each with its own procedures:<\/p>\n

    Traditional Method Setup: Involves obtaining a Company Name Certificate issued by a public service (IRN \u201cInstitute of Registries and Notaries \u201c). This certificate formally identifies the new company. The company’s primary identity is established through a Company Card and a Collective Card, both issued by the IRN.<\/p>\n

    Online Setup:<\/u> This method, known as “Empresa Online,” typically takes one to two days to complete. It requires electronic certification for validation.<\/p>\n

    On-the-Spot Entity Setup<\/u>: Referred to as “Empresa de Hora,” this option is commonly utilized by sole traders and limited companies. It involves establishing the company through a government scheme, with the presence of the company’s principals and required documentation. Legal representatives are also recommended to be present during this process.<\/p>\n

    Upon company establishment, several additional steps are necessary:<\/p>\n

    Opening a business bank account and making an inaugural deposit.<\/p>\n

    Informing the local Tax Office about the initiation of commercial activities.<\/p>\n

    Registering the business with both the Commercial Registry Office to formalize the Portuguese business and the Social Security Office to register as an employer.<\/p>\n

    B, TYPES OF BUSINESS ENTITIES<\/strong><\/p>\n

    In Portugal businesses can take on various legal structures, catering to different ownership arrangements and liability considerations:<\/p>\n

    a.) Single Owner Structures:<\/u><\/p>\n

      \n
    1. Sole Trader<\/li>\n
    2. Single-member Limited Company<\/li>\n
    3. Individual Limited Liability Establishment<\/li>\n<\/ol>\n

      b,) Businesses Owned by Multiple Individuals:<\/u><\/p>\n

      i.Private Limited Company (Sociedade por Quotas): Requires a minimum capital investment of \u20ac5,000, with each shareholder contributing a minimum of \u20ac100 per share. Shareholders have joint responsibility for matters outlined in the Articles of Association and are liable for debts up to the value of the business assets.<\/p>\n

      ii.Public Limited Company (Sociedade An\u00f3nima): Requires at least five shareholders and a minimum capital investment of \u20ac50,000. Liability for debts is limited to the value of the business assets, shareholders bear personal responsibility for the worth of their shares.<\/p>\n

      \u00a0<\/strong>C. PARTENERSHIP STRUCTURES<\/strong><\/p>\n

        \n
      1. Partnership (Sociedade em Nome Colectivo): Requires a minimum of two partners, with their liability extending to personal assets to cover accrued debts.<\/li>\n
      2. Limited Liability Partnership (Sociedade em Comandita): Involves different types of partners, including general partners with unlimited liability for business operations and sleeping partners who provide capital with limited liability.<\/li>\n
      3. Cooperative and Not-for-Profit Organizations: Operate on the principle of mutuality for the benefit of members; these are regulated by the \u201cAntonio Sergio Cooperative Sector Institute\u201d (Cases).<\/li>\n<\/ol>\n

        Each legal structure offers distinct advantages and considerations, allowing businesses to choose the most suitable option based on their needs and objectives.<\/p>\n

        D. ABOUT FOREIGN COMPANY BRANCHES OR SUBSIDIARY\u00a0<\/strong><\/p>\n

        A foreign business seeking to establish a branch or subsidiary in Portugal must undertake the following formal procedures:<\/p>\n

        Registering the branch office’s name with the Institute of Registries and Notaries (IRN).<\/p>\n

        Registering with the Commercial Registry Office.<\/p>\n

        Providing the incorporation documents of the parent company.<\/p>\n

        Presenting confirmation from the board of directors affirming the decision to open a branch.<\/p>\n

        Submitting a power of attorney as required.<\/p>\n

        These steps ensure compliance with Portuguese legal requirements for establishing a foreign business presence in the country.<\/p>\n

        For more information, please contact us.<\/p>\n","protected":false},"excerpt":{"rendered":"

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