Before you start working on the specifics of launching your firm, be sure it is legal for you to do so in Portugal. You must have your Portuguese residency card, a social security number, and a tax identification number (NIF) issued by the Portuguese tax office. A Portuguese visa and residency permits are required if you wish to launch a business and are a citizen of a country outside of the EU or EFTA. The ‘One-stop shop’ solution offered by some Portuguese organizations makes the incorporation procedure in Portugal extremely effective and quick. If all necessary paperwork is available, these organizations provide a ‘one-stop shop’ service that speeds up the business formation procedure to under an hour. Here are the steps:
Choose the business structure
The Portuguese Companies Code governs a variety of commercial legal formations in Portugal. You must decide which one best matches the structure of your business. Look at the most typical business categories in Portugal:
Private limited company
It is referred to as Sociedade por Quotas. A minimum of two partners and €5,000 in cash are required for this company. Shareholders are all viable for obligations covered by corporate assets and are required to pay a minimum of €100 per share.
Public limited company
Known as a Sociedade Anomina, this structure needs a minimum of five shareholders and €50,000 in capital. Shareholders are responsible for debts up to the value of their shares.
Partnership
Sociedade em Nome Colectivo is the name given to it. A partnership must have a minimum of two members, and each partner is personally liable for any partnership obligations, up to the value of their assets.
Limited liability partnership
Sociedade em Comandita is what it is called. It needs a minimum of two partners who manage the company and are personally liable for any debts and obligations. Additionally, it includes bed partners who contribute money with the understanding that their liability is capped to the sum invested.
One-person limited firm
It is known as a Sociedade Unipessoal por Quotas where just the company’s assets are used to cover debt obligations. A minimum capital investment of €5,000 is needed for this.
sole proprietor
This kind of self-employment, known as Empresario em Nome Individual, involves one individual operating a firm. No minimum capital requirement exists, and single proprietors are liable indefinitely for any business obligations.
Register the firm name with the national registry of collective entities
The National Registry of Collective Entities must verify that the name of a newly created firm does not already exist in the register. If the name is available, a price may be paid to reserve it for 48 hours. Another option is to choose from the database’s pre-approved names list maintained by RNPCs. The certificate of name approval is delivered to the firm once the name has been handled properly.
Create a bank account
The founders must create a bank account and deposit the minimum needed share capital for each member.
Obtain the registration certificate
The National Registry of Collective Entities must be contacted by the founders to seek a Portuguese Tax Identification Number. Additionally, they must ask for a current extract of the record in the Commercial Registry and the minutes from the incorporation’s first meeting. Once the paperwork has been sent in, the “one-stop shop” agency may help with the procedure and provide a typical memorandum and articles of organization. Through the ‘one-stop shop’ procedure, it is possible to get the corporate identity card, deed, company registration certificate, Social Security number, and certificate of incorporation all at once. Otherwise, it must be sent to the appropriate authorities within 15 days after incorporation.
Register employees
At the Centros de Formalidades das Empresas (CFE) or the Business Registry Offices, the company must register each employee. This must be done at least 24 hours before they start their operations and no later than 10 days after the business’s official launch. Within 24 hours of the employment agreement’s effective date, the employer must additionally register the workers with the local Portuguese Social Security agencies. A fine of between €75 and €4,800 will be paid if the employment registration requirements are not followed.
Inform the labor inspection department
The employer is required to provide the Labor Inspection Office with certain details about the company. These include the firm name, tax identification number, a copy of the announcement of the company’s establishment, a description of the business’s activities, and its headquarters address. This may be sent to the One Stop Shop, who will deliver it on the company’s behalf.
Register for Insurance
The last stage is for all workers and supervisors who get a regular income to sign up with a private insurer for employee accident compensation insurance. The insurance may be obtained after the firm has started operations and is underwritten by a private insurer.
Begin your business venture
Incorporating a corporation in Portugal takes 1-2 days if done through a One Stop Shop or 2-3 weeks if done manually. Companies in Portugal are required to have an accountant. Your accountant may assist you in setting up a bank account for your business once you have signed the deeds. Your accountant will register the activities of your firm with the tax office using your IBAN information so that you are prepared to pay taxes.
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