Opening a company in Portugal is an excellent opportunity for those looking to invest in a stable market, with access to the European Union and a growing entrepreneurial ecosystem. This business guide was created to help beginners – both locals and foreigners – understand the process of starting a business in Portugal, from legal requirements to associated costs.
Who Can Open a Company in Portugal?
Any Portuguese citizen, legal resident, or foreigner with a tax identification number (NIF) can open a company in Portugal. Non-EU foreigners can also do so, provided they meet the legal requirements, such as obtaining the appropriate visa (e.g., D2 visa for entrepreneurs) and registering for tax purposes.
Why Start a Business in Portugal?
Portugal is increasingly recognized as a strategic destination for entrepreneurs. Here are the main reasons:
Attractive Business Environment
- Legislation aligned with the European Union.
- Political and economic stability.
- Tax incentives and investment support programs.
- Easy access to international markets.
Support for Foreign Investment
- D2 visa for entrepreneurs and Golden Visa for investors.
- Programs like Startup Portugal and Portugal 2030.
- Favorable tax regimes for startups and SMEs.
Qualified and Multilingual Talent
- Highly skilled workforce with strong English proficiency.
- Excellent universities in technology, management, and innovation.
- Competitive salary costs compared to other Western European countries.
Easy Business Formalization
- Digital processes like “Empresa na Hora” and “Empresa Online”.
- Possibility to open a company with a minimum share capital of €1.
- Accessible legal and accounting support.
How to Open a Company in Portugal
The formalization process of a company in Portugal involves the following steps:
- Choose a company name: Select a pre-approved name or create a new one and request approval through a certificate of admissibility to ensure it is unique and accepted by the Institute of Registries and Notary.
- Choose the type of company:
- Single-Member Private Limited Company (LDA): One shareholder with limited liability.
- Private Limited Company (LDA): Two or more shareholders; the most common model for SMEs.
- Public Limited Company (SA): Requires a minimum share capital of €50,000; ideal for large businesses.
- Set up an accounting system: Within 15 days of incorporation, appoint a certified accountant or submit the declaration of commencement of activity to the Tax Authority.
- Draft the Articles of Association: This document outlines the company’s structure, shareholder responsibilities, and share capital.
- Register the company:
- Can be done online via the Empresa Online portal, through the new Empresa Online 2.0 platform or in person at a Empresa na Hora desk.
- Registration includes obtaining the corporate tax number (NIPC), registering with Social Security, and the Tax Authority.
- Open a business bank account and deposit the share capital (minimum €1 per shareholder for LDA).
- Obtain licenses and notify the start of activity to the Tax Authority.
How to Open a Company in Portugal as a Foreigner
Foreign entrepreneurs must follow the same steps, with special attention to:
- Obtaining a NIF with a tax representative (if not residing in Portugal).
- Securing the appropriate residence visa (e.g., D2 visa).
- Translating and legalizing foreign documents.
- Opening a Portuguese bank account, which may require physical presence.
Foreign companies can also open branches or subsidiaries in Portugal, with specific registration procedures.
What Is the Cost of Opening a Company in Portugal?
Costs vary depending on the type of company and registration method:
- Empresa na Hora: From €360.
- Certificate of Admissibility: €75 (custom name) or free (pre-approved name).
- Legal or accounting fees: Variable, but recommended to ensure legal compliance.
- Minimum share capital: From €1 per shareholder for LDA, €50,000 for SA.
Advantages and Disadvantages of Opening a Company in Portugal
| Advantages | Disadvantages |
| Relatively simple and digitalized formalization process | Bureaucracy still present in some sectors |
| Competitive tax regime for startups and SMEs | High tax burden for companies in certain brackets |
| Incentive and funding programs (e.g., Portugal 2030, Startup Portugal) | Need for local legal knowledge or professional support |
| High quality of life and skilled workforce | |
| Access to the European market |
Final Tips for Starting a Business in Portugal
- Planning is essential: Develop a solid business plan.
- Consult a lawyer or accountant: Especially useful for foreigners.
- Take advantage of public support: Such as IAPMEI, IEFP, and innovation incentive programs.
- Choose your location wisely: Lisbon, Porto, and Braga are dynamic hubs, but there are incentives for investing in the interior regions.
Thinking of Opening a Company in Portugal?
Opening a company in Portugal can be the first step toward a successful entrepreneurial journey. With the right support and up-to-date knowledge, the process becomes simpler and safer. If you need personalized legal assistance, our team is ready to help at every stage of your business formalization. We offer:
- Assistance with starting a business in Portugal (negotiations and investments)
- Incorporation, dissolution and liquidation of companies
- Those inherent in the development of the business activity and its internal organisation (amendments to the articles of association, agreements between partners, etc.)
- Legal advice and counselling in the implementation of foreign investments in Portugal
- Advising on the analysis, review and negotiation of international contracts
- Counselling in insolvency and corporate recovery proceedings
- Licensing of commercial and other activities
If you are considering opening a company in Portugal, contact us.