Advice on the Right Company Structure in Portugal
Set your business up for success in Portugal.
Our corporate lawyers will guide you through the process step-by-step.
How can a lawyer help me?
The process of incorporating a company can be very long and expensive, leading to unforeseen hurdles. This is true even for international businesses looking to enter the market in China. The issue is most familiar with ex-pat entrepreneurs as they don’t understand the rules set by Commercial Company’s Cod.
A lawyer can guide you through the company incorporation process, whether a Limited or a Public Limited Company on a stock exchange. They will make the bureaucracy much simpler and faster when forming a company. A legal professional has expert knowledge and practical experience that can help reduce costs associated with this process.
Lawyers can discover if your catchy business name isn’t already Trademarked in Portugal. If it is, they can advise on after business name ideas.
If you’re thinking of moving your business to Portugal, a professional lawyer can help you with the country’s specific requirements. A lawyer can help you navigate the bureaucracy and get your business up and running in Portugal quickly and smoothly.
Our experienced corporate lawyers want to set your business on the path toward success. This means that the company’s structure should be designed from the outset to enable it to raise capital and become a public company if necessary.
Another significant benefit of appointing a lawyer as the company’s director is that they can become their power of attorney. This allows them to represent the company before Portuguese officials. This saves travel costs, time, and hassle in other countries where business transactions might need to be conducted.
The team at Lexidy LegalTech Boutique has years of experience working with all clients and their company formation needs. We regularly work with businesses of all sizes throughout the country’s economic centers to position new enterprises for success.
¨We will be with you each step of the journey.¨
How can I incorporate a Company?
The incorporation process differs depending on the type of entity to be created. Private Limited companies, for example, are much simpler, more affordable and faster than a public limited company.
Even so, both Private and Public Limited Companies must still meet essential requirements like:
- The shareholders must have a Portuguese Tax Number (NIF).
- Applying for a company name with the Portuguese Commercial register.
- Opening a bank account.
- Preparing the company bylaws.
- Having an accountant.
What types of companies can we incorporate?
One of the best ways to start, grow or expand your business in Portugal is through company formation. Some businesses enter the country to sell products or services. Some people use Portuguese territory as a base for operations in South America because the languages spoken there are similar to the Portuguese language and culture. That, combined with a business-friendly climate for new companies, has elevated Portugal to a new start-up hub.
Company formation agents will help you start a business and register a company correctly. They will help you understand whether a limited liability company (LLC), general partnership or private company is the best organizational structure.
Whatever the motivation or goal, several legal entities in Portugal can be used:
- Subsidiary: This involves creating a new company. However, it is linked to an existing company and acts as a shareholder of the new entity. The shareholder company can be a local Portuguese business or an overseas enterprise. The new company, however, will have its independent legal personality.
- Branch: This corporate structure does not have its own legal personality separate from its head office. However, it has a “tax personality” in its territory. They are considered non-resident IRC taxpayers with the permanent establishment.
They will have to comply with all tax and accounting obligations outlined in Portuguese law. This includes declaring the start of the activity, payments on account, VAT returns, issuing invoices and more.
The accounting of the branches must be prepared and centralized in Portugal, covering only the operations that take place in Portugal.
A branch does not have its own legal personality and is not a separate company. However, it is necessary to compute the branch’s result separately for management reasons and taxation and tax compliance purposes.
- Associations: These are non-profit types of companies and maybe cultural, social, or other. They may pursue the following objectives:
- Support for children and young people
- family support; support for social and community integration;
- protection of citizens in old age and disability
- Foundations: these are legal persons focused on executing a socially relevant purpose, whether religious, moral, cultural or of assistance. Foundations can pursue but are not limited to the following objectives
- aiding people with disabilities;
- preventing and ending poverty;
- promoting humanitarian support actions;
- protecting citizens in old age and disability
- and resolving housing problems.
The above entities all have different approaches to and requirements for accounting. This table shows the unique flavour and legal needs for each type of company in Portugal:
|Individual legal personality||Yes||Yes||No||No||Yes|
|Minimum Share Capital||€1||€1||Zero||€0 with a €300 Registration cost||€250,00|
|Register with Commercial Register||Yes||Yes||Yes||Yes, with the Balcão Associação na Hora||Yes, with the Instituto dos Registos e Notariados|
|Is the Parent Company legally Liable?||No||No||Yes||No||No|
|Corporate Income Tax||Yes||Yes||Yes||Yes||Tax|
|Payroll Obligations, like Social Security||Yes||Yes||Yes||Yes||Yes|
We are a department formed by qualified legal experts who have been trained in the field of corpoRate law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.
IS TO MAKE CLIENTS HAPPY
How Can We help you?
Looking for more?
Our Smart Search help to focus on important!