Portugal Company Formation

Opening a company in Portugal

Why open a company in Portugal? What are the advantages in Portugal?
Portugal, a country that is part of the European Union, is a great hub for real estate activities including investments, purchases and construction, a hub for import-export companies, and a convenient solution for many entrepreneurs.

The country borders Spain, and to the west is the Atlantic Ocean.

The local currency is the euro (EUR), and living is relatively cheap in the country.

Portugal is a warm and interesting country, with a rich culture. Portugal is full of culture and is very touristic (number one destination in recent years), and with a great atmosphere of freedom and happiness. The local market understands the English language very well.

The process of opening a company in Portugal
Opening a company in Portugal begins with the signing of a notarial power of attorney to open a company by a local agent. The document is then sent with a courier urgently.

At this stage, a tax number is issued to all shareholders (NIF)

The Registrar of Companies then confirms the name.

Documents are signed, and after 1-2 weeks you receive the incorporation documents, i.e. the statutes and the certificate of incorporation.

In Portugal there is no need for a local director or a local shareholder. In Portugal you also do not need any European citizenship to open a company. You can open a Portuguese company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

To open a company in Portugal, it is necessary to deposit equity capital. Equity can be as low as 1 euro only. Unlike other countries, the equity is not required to be deposited before opening the company, but rather after it. In other words, the equity must be deposited in the bank account by December 31 of the year, and therefore it can be deposited even after the company is fully opened.

Opening a bank account in Portugal - current account for the company
After opening the company, it is time to open a current bank account in Portugal for the company.

Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country. However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are internet banks in Europe that would be happy to accept your company in Portugal as a client.

VAT registration
After opening the company, you have 15 days to register with the tax authority and start operating, and for that you need to open a bank account. In the case of those who are not European citizens, banks in Portugal ask for a resident permit, so the company can open an internet bank account and you can start activities with it, and after that you can try to open a local account in Portugal.

The whole process from start to finish takes about 4 weeks.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.

EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

However, all costs in Portugal are low due to the relatively cheap cost of living.

Tax in Portugal
The corporate tax in Portugal stands at only 21%.

For sales to the local Portuguese market, the VAT is 23%.

Questions and answers
Question: Is it necessary to physically fly to Portugal to open a company in Portugal?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Portugal. There is no need to fly to Portugal to open the company. However, if you want a local bank account, you must fly to meet with the bank. It is not mandatory and you can get by with an internet bank account.

Question: Who provides the local address for the company in New Portugal?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of our new Portugal company?
Answer: We will connect you with a local accountant.

Question: If I want to come to Portugal to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find which branch will accept you and open a bank account for your new company in Portugal.

Question: What type of company in Portugal should I open?
Answer: A limited liability company in Portugal is called an LDA. This is the only type of limited liability company, so there is no need to be confused between different types.

Question: Do you need a European passport to open a company in Portugal?
Answer: There is no need for a European passport. We can open a company in Portugal for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Portugal?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 1-3 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Portugal for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Portugal for a person with American citizenship or a person living in the USA.

Question: How much does it cost to open a company in Portugal?
Answer: Click here to contact us and get an up-to-date quote for free!