Forming a company in Portugal is a great option for starting a business in the European region. The two most common types of companies in Portugal are the Individual Company (UNIPAL), owned by one person, and the Private Limited Liability Company (LDA), managed by multiple shareholders and partners. To incorporate a company, it is necessary to draft a Memorandum of Association that outlines the activities and responsibilities of the company, as well as the ownership of shares. The company must be registered with the taxation, labour, and financial departments within 15 days of its formation. Additionally, the business must have a bank account with a private or public financial institution.
The steps to form a company in Portugal include selecting the type of company, obtaining a Portuguese tax number, obtaining an address for the company, transferring power of attorney, selecting a name for the company, drafting the Memorandum of Association, signing the documents and MOA, paying state fees, obtaining a company certificate of registration, applying for a beneficiary certificate, opening a company bank account, and hiring a certified accountant.
The income tax for residents in Portugal ranges from 14.5% to 48%, while non-residents are taxed at 25%. Social security tax on salaries is 11% plus 23.75%, and value-added tax is 23%. Corporate tax is 25%.
In Portugal, it is possible to start an offshore company, but the individual may not be eligible for immigration benefits. The minimum capital required to start a company in Portugal is 1 Euro. Portuguese businesses can be expanded throughout the European Union, but not outside of the EU. The Portuguese government provides financial aid for employment-generating and environmentally-friendly businesses. It is not necessary to form multiple companies to execute different business ideas, as one company can accommodate multiple ideas. The taxes for starting a business include VAT, income tax, corporate tax, and social contribution. Having a company in Portugal can also assist in obtaining residency. Portugal is considered an investment-friendly country, with opportunities in various fields such as agriculture, IT, and call centers.
