How to Start a Business in Portugal: A Step-by-Step Guide

Are you looking to start a business in Portugal? With its favorable business environment and attractive tax incentives, Portugal has become a popular choice for entrepreneurs and investors.

Registering a business in Portugal can be quite straightforward if you follow the right steps or seek professional assistance. Get a free consultation from 360WEDO, and we’ll guide you through the entire process with minimal effort on your part.

In this guide, we’ll outline the steps needed to set up a company in Portugal, from choosing the right legal structure to completing the registration process.

Step 1: Choose the Right Legal Structure for Your Company

The first step in starting a business in Portugal is to determine the most suitable legal structure. Options include:

• Limited Liability Company (Sociedade por quotas): A popular choice for small and medium-sized enterprises (SMEs) due to its flexibility and simplified management structure.
• Public Limited Company (Sociedade anónima): More suitable for larger companies planning to raise capital through public offerings.
• Holding Companies (SGPS): Often used for asset protection and tax optimization.

Each legal structure has specific requirements and advantages, so it’s important to choose one that aligns with your business goals. We can assist you with this decision.

Step 2: Determine Authorized Capital and Shareholders

In Portugal, there is no minimum authorized capital requirement for most company types; you can start with as little as 1 euro. However, if you choose to form a public limited company, the minimum authorized capital is 50,000 euros. The authorized capital must be fully subscribed and paid up before registering the company.You can choose to form a company with one or multiple shareholders. There are specific rules regarding single-shareholder companies, so understanding local requirements is essential.

Step 3: Apply for a Company Name Reservation Certificate

Once you’ve decided on the legal structure and authorized capital, the next step is to apply for a company name reservation certificate online through the RNPC website. The application requires proposed company names, corporate purpose (a detailed list of activities), and the municipality for the registered office. If you are a foreign individual, you will need a Portuguese tax number, and corporations will also need a tax number.

Step 4: Prepare and Execute the Articles of Association

After receiving the name reservation certificate, the shareholders or their appointed legal representatives must prepare and execute the articles of association, which outline the company’s rules and list the directors.

Step 5: Register the Company

The next step is to register the company. Along with the valid name reservation certificate and articles of association, the commercial registry may require additional documents.

These documents may include:

• A declaration of acceptance of the director’s position
• A declaration stating that there are no obstacles to fulfilling the director’s duties
• A list identifying the ultimate beneficial owners for anti-money laundering purposes
• A statement from the statutory auditor accepting the company’s shares

After this, your company should be registered in Portugal.

Step 6: Commence Operations and Register with Tax Authorities

Within 15 days of your company’s incorporation, you must start business operations and register with the tax authorities. This involves obtaining a Tax Identification Number (TIN) for your company.

Step 7: Register the Director in the Social Security System

You must register the company’s director in the Portuguese social security system to ensure entitlement to social benefits and contributions to the system.

However, if you can provide sufficient evidence that you are already registered in a recognized jurisdiction and are making contributions there, you may be exempt from registering in the Portuguese social security system.

Step 8: Open a Bank Account

Once your company is registered, you can open a bank account to manage your business finances. You can choose a Portuguese or EU bank.

Need Professional Assistance?

Starting a business in Portugal involves navigating various legal, financial, and administrative procedures. Let 360WEDO handle the complexities for you. Our experienced professionals can help you prepare the articles of association, register your company, and manage your tax and accounting affairs in compliance with local regulations. 

Contact us for a free consultation and learn more about our corporate outsourcing services.