All names must be approved by the National Registry of Companies. Three names must be proposed for approval, with the Registry deciding at its discretion the most appropriate name. The company name must reflect the company’s proposed activities. Once the name is approved, the Registry will issue a certificate of registration along with a provisional tax registration card.
All companies require a registered office in Portugal where official letters may be sent, where tax forms are executed, and where all financial and reporting documents including accounting records and company registers must be kept. As part of our incorporation package, we can provide a registered office in Portugal.
Only one director is required, and there are no nationality or residency restrictions. Company registers must be kept at the official registered office, while director registers are not available for public inspection.
It is a requirement though that each Director and/or Shareholder have or obtain a Portuguese taxpayer identification number and that non-EU/EEA entities must have a resident tax representative.
Only one shareholder is required for a Portuguese company, and this person may also be the director. There are no restrictions on the number of shareholders nor restrictions on their nationalities and residencies. Shareholders may be individuals or corporate bodies.
Portuguese company law states that an LDA must appoint a company accountant responsible for its accounts.
We can refer you to an accountancy firm if required.
TIN - Tax Identification Number
Obtaining a Tax Identification Number is the first step that must be taken by all individuals wanting to form a Company in Portugal.
The company will also be granted a TIN, it is also the Companies corporation tax reference number, their VAT registration number and the company registration number.
Bank Account Introduction
We can assist with the intermediation between clients and banks within Portugal. Assisting with organisation of necessary due diligence for a successful application.
The minimum share capital is €5000 and this must be paid upon incorporation. A reserve is required with the purpose of absorbing any losses and 5% of profits must be added to this reserve each year.
Having a company secretary is only required for a Listed Company, otherwise it is not a requirement to have a Company Secretary when forming a Portuguese Company.
It is recommended though where the company does not have a Director resident in Portugal.
Annual financial statements must be filed online with the Finance Ministry for the previous reporting year by June. Auditing is not required if the company does not exceed a certain size.
The Portuguese company formation process typically takes 4 weeks.
This includes the opening of a business account and filing the company with the tax office.
Portugal Company Formation – £2800
Company Administration & Registered Office – £850
Bank Accountant Introduction – £750
Proof of Identity
As part of our due diligence, we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
Although not a requirement, it is highly recommended to travel to Portugal to incorporate for the purposes of notarising incorporation documents, presenting identification of the company members and opening a corporate bank account.
Portugal Sociedade por Quotas (Lda) Company Formation
Sociedade por Quotas (Lda) are equivalent to Private Limited Companies in other jurisdictions and remain the most popular vehicles for local and foreign investors to conduct business in Portugal.
There are no restrictions on the percentage of foreign ownership of Portuguese companies. It is possible to incorporate a company that is fully owned by non-residents, whether a corporation or individual.