Company formation in Portugal

Among various factors, company formation in Portugal is attractive to an entrepreneur on account of certain advantages that contribute to giving shape to a favorable business environment. Setting up a company in Portugal is not so complicated, and the country also offers many advantages to enterprises.

With Portugal facing Europe, Africa, and the American continent, this country is strategically positioned to achieve an ideal hub for international trade. It has a number of infrastructures which are well developed, including modern transportation networks and means of communication that ease business.

The legal framework in Portugal, concerning company formation, is really transparent and supportive. Entrepreneurs can choose the proper legal structure, based either on a limited liability company, usually referred to as Limitada-LDA, or on a public limited company, called Sociedade Anónima, in English SA, tailored to their business needs.

A qualified, multilingual labor force is available in Portugal, thus giving the necessary competitiveness to companies of any business vertical. Business-friendly improvements have been fostered by the authorities, including tax benefits, subsidies, and startup and small enterprise incentives.

Corporate services in Portugal

Why Consider Registering a Company in Portugal?

Portugal is an attractive destination for company formation, boasting strategic, economic, and workforce-related advantages. Its southern European location facilitates access to global markets, making it an ideal base for businesses seeking international expansion. Portugal’s stable and growing economy supports a diverse range of industries, from manufacturing to technology and services. The nation’s skilled and multilingual workforce is a valuable asset for businesses aiming for success.

The Portuguese government’s pro-business policies, including tax incentives, support for research and development, and streamlined bureaucratic procedures, create a favourable business environment. Additionally, the country’s well-developed infrastructure ensures that companies operating in Portugal have the necessary tools and systems to thrive.

In order to complete the process to open a company in Portugal, It is essential to do some paperwork. The documents required for opening a business are:

• Tax Identification Number (TIN);
• Business Registration;
• Proof of enrollment in Social Security;
• Early declaration of activity;
• Approval certificate;
• Deposit of capital;
• Finally, preparation of statutes or constitutive act of society

In terms of expenses, it is also necessary to add the services provided by the Accountant (TOC). In other words, companies are required to hire this, internally or externally, which is held responsible for the submission of tax returns and round a cost of 200 € per month. Associated with this type of service, there is also the costs associated with the acquisition of a billing software certified by the tax authority.

ORGANIZATIONAL REQUIREMENTS FOR COMPANY REGISTRATION IN PORTUGAL

Undertaking the process of establishing a company in Portugal involves a thorough understanding of various requirements integral to regulatory compliance and operational efficiency.

Determining the share capital for the company is a critical step. While private limited companies (LDA) in Portugal do not impose a specific minimum share capital, careful consideration of the capital structure and shareholder contributions is necessary. On the other hand, public limited companies (SA) are subject to minimum share capital requirements stipulated by law.

Establishing a physical presence is implicit in the requirement for a registered office address within Portugal. This address serves as the official communication hub, aligning with legal obligations and substantiating the entity’s existence within the national jurisdiction.

While not explicitly mandated, securing office space is practical for operational efficiency and client interactions, contributing to the company’s credibility and professionalism.

Employing local staff may be advantageous, depending on the nature and scale of the business. While not a strict requirement for company formation, having a local workforce can facilitate smoother operations, enhance cultural integration, and demonstrate commitment to the local community.

These considerations, though not universally mandated, contribute to a comprehensive approach in establishing and operating a company in Portugal, ensuring adherence to regulatory norms and fostering a conducive business environment.

What kind of companies does exist in Portugal?

In Portugal, several key types of companies exist, all of which have some peculiarities in terms of constitution requirements, advantages, and restrictions. A choice of legal form for conducting business depends a great deal on the size of an enterprise, goals set by its owners, volume of activities foreseen, and the need to attract additional capital. Herein, we present an overview of the most common types of companies in Portugal offering different options of structural business opportunities.

 

One-face private limited liability company – in English, Sociedade Unipessoal por Quotas, Lda.

This is a kind of company owned by one owner. The essential advantage of such a company lies in the combination of personal initiative and limited liability because it protects the assets of an entrepreneur from all kinds of debts or obligations that his business may have.

Limited Liability Company (Sociedade por Quotas, Lda.)

This kind of enterprise is the most popular among small and medium-sized businesses in Portugal. A limited liability company may be established by one or several founders, whose liability is restricted by the size of their contributions to the authorized capital of the company.

Joint-Stock Company (Sociedade Anónima, S. A.)

This legal form is suitable for large companies and projects requiring large capital. The stock company can obtain financing through selling of shares to the public. Share holders are responsible up to the amount of their share.

Limited Society (Sociedade em Comandita)

This company type allows for two kinds of partners: limited ones whose liability goes only up to the limit of the contribution to capital and full partners whose liability is unlimited. This kind of company is rather less common and provides certain cases of its use.

Co-op (Cooperativa)

Cooperatives are groups of persons or legal entities with aggregated assets to achieve common economic, social, and cultural objectives. These may be active within the scope of any economy sector and may confer upon its members the right of participation in management and profits.

Single Owner

It is considered that, in such companies, a person performs on his own behalf without a separate legal entity. Sole proprietors are personally and completely liable for all the obligations of their business, including debts.

The selection of the company’s legal form in Portugal involves detailed analysis of the pursued business goals and prospects, including understanding the very particularities of different company types, including from legal and tax perspectives. It is also relevant to consider the capital needs and the responsibility, the desired level, and the input in management. A meeting with a legal and financial expert will help you identify the best form of enterprise for your business venture in Portugal.

What is the Amount of the Company’s Authorized Capital in Portugal?

It means that the authorized capital of a firm refers to the sum or value of contributions set aside by its founders at the time of the establishment of the firm. This, however, differs according to the type of legal form a company is supposed to take on in Portugal. In Portuguese legislation, the various forms of business translate to other requirements concerning the size of the authorized capital for the development of those stated forms by entrepreneurs in the registration process. In this paper, we will examine what minimum authorized capital requirements are for the most popular forms of companies in Portugal.

Among the most vital decisions that have to be made upon opening business in Portugal, first of all, is the type of legal form a company will have, and accordingly, the size of charter capital. The low level of the latter requirement makes this kind of organization unusually appealing for many entrepreneurs. At the same time, joint-stock companies enjoy greater opportunities for large businesses and for attracting investment due to higher capital requirements. In any case, the preliminary preparation and awareness of legal requirements form a basic key to successful registration and operation of an enterprise in Portugal.

Should a company in Portugal have a local director?

Portuguese law does not contain the rigid requirement that a director or any member of the board of directors in respect to a company has to be compulsorily a national or resident of the country. However, there are certain nuances which might alter this decision regarding the management structure of the company:

1. Tax residency: The appointment of local directors may affect the tax residency of the company in Portugal and, as a consequence, the capability of the company to properly plan and comply with its tax duties and obligations.
2. Managerial and administrative responsibilities: The presence of a resident director in Portugal may facilitate the performance of certain administrative tasks, such as bookkeeping, the relationship with public authorities, and compliance with Portuguese legislation.

Practical considerations

For foreign investors and entrepreneurs who are not residents in Portugal, here are some practical aspects to be considered in appointing a director:

• Management effectiveness: With a local director, you will be able to manage your company much more effectively, solving all the current challenges of your company faster.
• Language barrier and insight into the local market: A local director can contribute significantly to the specific knowledge required for doing business in Portugal, focusing on the legal and cultural issues pertinent to the country.

Alternatives

Companies seeking to retain control of management without appointing a local director may consider the following alternatives:

• Using the services of management companies: Those companies provide local directors on a contract basis, which would solve, in this way, the foreign company problems in terms of compliance with the local requirements without losing control.
• Resident appointment as a Director: Foreign investors may appoint a Portuguese resident they trust as a director.

Although the law in Portugal does not make it necessary, there are management, tax planning, and administrative requirements that may be fulfilled by having a resident director. Overseas companies should weigh up all the pros and cons with respect to their specific business needs and objectives before deciding on the structure of management to use for their company in Portugal.

What are the state taxes of creating a company in Portugal?

It is obvious that strategic planning and preparation of the papers is not all what should be done when opening a company in Portugal. Some state taxes and fees payment is also included. Such costs may depend on the company type you are going to open and the registration method chosen. In the following lines, we will focus on what government fees and charges entrepreneurs have to bear when opening a company in Portugal and how these can impact the initial budget.

State fees and charges on company registration

State fees and charges for company registration in Portugal depend on the form of registration but also on the type of legal entity. While the ‘Empresa na Hora’ system enables a speedier and at the same time more simplified fixed-cost procedure, classic registration may be more expensive. Anyway, your advanced knowledge about it will help you to plan better your budget in the initial phase of your business in Portugal.

What does it cost annually to service a company in Portugal?

It is difficult to define the exact annual cost of servicing a company in Portugal as this involves various types of payments and obligations that can vary depending on the size of the company and the scope of its activities, too, as well as what type of services and support it needs for its proper operation. The purpose of this article is to outline the main heads of expenditure regarding the annual maintenance of a company in Portugal so that entrepreneurs can roughly estimate what to expect when doing business in this country.

Registration and Licensing Fees

According to the kind of activity that your company conducts, there can be some specific licenses and permits to be had; the cost of these may vary depending on the concrete needs. At the same time, once a year it is obligatory to confirm the relevance of information in the commercial register and this can also include some expenses.

Tax liabilities

But one of the most important facts about annual maintenance in a company is taxation. In Portugal, taxation at the corporate income level amounts to 21%, with some municipalities having additional tax rates. You should also consider VAT, which might be different depending on what kind of goods or services you deal in.

Accounting and audit costs

Companies in Portugal are required to maintain accounting records and file annual financial statements. The actual cost of accounting services depends on the size of the company and the complication of its business, but can on average range from several hundred to several thousand euros per year.

Legal fees

The prices can range anywhere, from very low to very high, considering that there are so many different business needs and varying solicitation of law services. It may involve consultation, drawing up contracts, transaction support, and representation in court for the protection of the firm’s interests.

Office space cost and maintenance

In addition, office space rentals, utility bills, office maintenance expenses such as Internet, telephony, office supplies are also major expenses. These vary depending on location and space size.

Salary and social contributions

If your company has employees, apart from salaries, you will have to consider social contributions. In Portugal, employers are obliged to pay for social contributions for employees, which increases labor costs by about 23.75% in addition to the gross salary of an employee.

The annual cost of serving a company in Portugal may vary considerably depending on the type and size of a business, number of employees, and other details of a business. All these costs need to be carefully planned in order for your business to operate in Portugal in a sustainable and effective way.

What are the main advantages of establishing a company in Portugal?

Opening up a firm in Portugal may be helpful for international entrepreneurs and investors willing to expand their businesses or enter new markets, as it boasts a good geographical location, quality infrastructure, encouraging tax policy, and high standard of living. In this article, we discuss the most crucial points a company setting-up in Portugal by law stands to gain, making the country increasingly appealing for business.

Strategic geographical location

It is a hub at the intersection between Europe, Africa, and the Americas, offering easy access to major international markets. Competitive and versatile industry Portugal has gained a privileged position due to its strategic location as a preferred platform for companies operating in international trade, logistics, and transport services.

Attractive tax system

Tax benefits and state aid for enterprises in Portugal include, among others, the “Tax Benefits for Domestic Investment” regime, reduced tax rates for companies, as well as for start-ups and enterprises engaged in development and innovation. Foreign residents also have very good conditions in Portugal under the “Tax Regime for Non-Residents” program.

European market access

By establishing itself in Portugal, the company got direct access to the European Union’s single market of more than 500 million prospective consumers. The companies will enjoy free trade within the EU and have access to numerous European support and finance programs.

Qualified and multilingual labor

This holds all the more true for human resources involved in the Technology, Engineering, and Services sectors. There is a high level of education in Portugal, with a great number of university graduates specialized in technical and business specializations.

Developed infrastructure and high quality of life

The country is set upon modern infrastructure that includes a fully developed road network, high-speed railways, international airports and seaports. Portugal’s high standard of living, mild climate, rich culture and security attract people to live and work in the country.

Support for innovation and startups

The Portuguese government actively promotes innovation and startups through various programs and initiatives aimed at fostering a spirit of entrepreneurship and the development of new technologies. This creates a proper environment for business growth and development.

Establishing an enterprise in Portugal brings several key advantages to entrepreneurs, including its strategic location, tax benefits, access to the European market, skilled labor, and support for innovation. Such features make Portugal an attractive country for international businesses initiating new projects and future investments.

What are the ways to set up a company in Portugal?

This is a firm that can be established in Portugal using different methods, depending on the various needs and preferences of entrepreneurs. The choice of registration methodology depends on the level of desired speed, cost, and also business needs. The main purpose of this article is to stipulate the two leading ways one can effectively set up a company in Portugal: both the traditional and the digital method.

All these methods of company registration in Portugal depend on many factors: individual business needs, the urgency of registration, preference for personal participation in the process. Each of them has its advantages and could be optimal in different situations. This is to say that it is important to carefully study all the available options, and if necessary, consult professionals in order to choose the most suitable way to establish your company in Portugal.

Do I need to have a registered office in Portugal?

According to Portuguese legislation, every company set up in Portugal is obliged to maintain a registered office in the country. The address will give the official location of the company at which all notices related to their tax and legal affairs shall be sent. It must be given at the time of registration of the firm and entered in the commercial register – Conservatória do Registo Comercial.

Significance of a Legal Address

• Official Correspondence: It is important for the receipt of official correspondence, mainly those from the government agencies, for tax notices, and other correspondence.
• Registration Requirements: Evidence of one’s registered address is critical in the successful registration of a company in Portugal.
• Public Information: The registered office of the firm shall constitute public information that is normally easily accessible in the Trade Registry and all other official databases.
• Trust of clients and partners: Having a permanent legal address in Portugal can help build trust on the part of clients, partners and investors.

Ways to provide a legal address

• Office space rental: One of the most obvious ways to secure a legal address is to rent an office or commercial space.
• Virtual office: This is the best choice for start-up businesses or foreign companies who do not require a physical presence in the country. It will give you a legal address and a mailbox where you may receive correspondence without renting a real office space.
• Utilizing the address of an accounting or law firm: In light of the proximity between having a legal address and business operation, certain firms could sell the services regarding legal addresses as part of an overall service offer for clients.

Having the head office in Portugal is one of the pre-requisites for being registered and doing business in the country. It is a legal formality but it will also be important in managing correspondence and help maintain an image of the enterprise and thus, can help in building trust with customers and partners. So, the choice of a form to obtain a statutory address depends on particular entrepreneurial needs and opportunities.

Can I open a branch in Portugal from a company whose headquarters are abroad?

Probably the most tempting strategy for an international business willing to extend an operation and boost its presence within the Portuguese market would be the opening of a foreign company branch in Portugal. With this process, firms can operate in Portugal with already established names and reputations, giving an entrance to the European market. In this paper, some views are directed to specific moments of important aspects required to open a branch of a foreign company in Portugal.

Advantages of opening a branch

Opening a branch office in Portugal comes with numerous advantages for the foreign company, such as:

• Easy Market Access: The branch allows a fast entry into the Portuguese market due to the fact that it can rely on the same business model and good reputation developed by the parent company.
• Tax Advantages: Taxation in Portugal is very appealing, and the existing double taxation treaties provide the necessary impetus for a foreign company to open a branch office.
• Direta management: A branch is centrally managed from the head office itself, being responsible for uniformity in all respects of business procedures and strategy taken for the business operation processes.

Requirements to open a branch

Opening a branch in Portugal requires fulfilling quite a number of criteria below:

1. Registration with the Commercial Registry: The Branch should be enrolled in the Portuguese Commercial Register – Conservatória do Registo Comercial, which includes filing with regard to the parent company, such as incorporation documents and financial statements.
2. Legal address: It should be provided for official correspondence, where the branch office will be located, in Portugal.
3. Registration with the Tax Service: The branch shall be registered with the Portuguese Tax Service – Autoridade Tributária e Aduaneira – and obtain a tax number – NIF.

Tax aspects

In Portugal, the branches of foreign companies are subjected to an income tax, conducted on the territory of the country. In this context, we strongly advise contacting a tax consultant in order to optimize the tax burden and take all the applied tax benefits.

Procedure for Opening a Branch Office

Opening a branch office includes:

1. Preparation and translation of the parent company founding documents and financial statements into the Portuguese language.
2. Submission of documents for registration in the commercial register.
3. Appointment of a branch representative.
4. Register with the tax service and get a tax number.

Opening a branch of the foreign company in Portugal, therefore, is an effective step toward entering both the Portuguese and European markets. Compliance with all the necessary legal and tax requirements, along with meticulous planning and preparation, will result in the successful start of the branch in Portugal.

Can a foreigner open a company in Portugal?

It is not only possible for foreigners to open a company in Portugal, but this is also a gesture welcomed with open arms by the Portuguese government, in order to attract foreign investment and stir the economic growth of the country. The privileged geographical location, attractive tax policies, and high quality of life make Portugal an attractive jurisdiction for international entrepreneurs. The aim of the present article is to analyze the principal aspects and conditions concerning opening a company in Portugal by a foreign investor.

Legal forms of companies

For the company in Portugal, foreign investors can choose one of the following legal forms: a limited liability company – Sociedade por Quotas, Lda., a joint-stock company – Sociedade Anónima, S.A., an individual entrepreneur, among others. The ideal form is identified based on the size and pattern of management of the company and also the financial objectives set out.

Registration process

Advantages for Foreign Investors

• Golden Visa Program: Foreign investors can apply for the “golden visa”, which confers the right to residence and then citizenship in return for investment in the Portuguese economy.
• Tax benefits: Portugal offers many tax benefits to foreign investors, such as special treatment for highly qualified professionals and retirees, as well as companies’ reduced tax rates applying to various types of activities.

Opening an enterprise in Portugal by a foreign investor is relatively easy and transparent, with great potential for business development in a country with a high quality of life and access to the European market. This requires careful study of all requirements with the use of professional consultants in order to comply with local legislation and optimize the tax burden.

Can I get a residence permit by setting up a company in Portugal?

Setting up a company in Portugal is one of the means whereby foreign entrepreneurs can obtain residence in this country. Having favorable climatic conditions and high quality of life, attracting investors, Portugal is the very country which has elaborated flexible immigration policy with the aim to attract foreign capital and contribute to the development of the national economy. In the present article we will consider how the process of establishing the company can relate with the obtainment of a residence permit in Portugal.

Golden Visa Program

Probably the most widespread option to get an investor residence permit is the Portuguese Golden Visa program. This program, on certain investment conditions, allows granting residence permits to foreigners who create companies or contribute to the development of existing enterprises’ activity.

Investment Requirements

In this case, the investment in Portugal is in the form of the creation of a company. For participation in the Golden Visa program by means of opening a company in Portugal, the investor must observe at least one of the respective conditions below:

• Creating at least ten jobs in a company registered in Portugal.
• Making investments of at least 350,000 euros in research and development activities in Portugal.
• An investment of at least 350,000 euros in the restoration or preservation of the national cultural heritage.
• Investments of at least 500,000 euros in shares or capital of companies based in Portugal.

Procedure for obtaining a residence permit

• Preparation of documentation: The investor should prepare a set of documents confirming the investment that includes company registration documents, proof of job creation if any, and documents confirming the financial investment.
• Application Form: The Golden Visa application will be forwarded through the official portal of SEF, the Foreigners and Borders Service in Portugal. In addition to the basic documentation, you will need to provide your biometric data.
• Waiting for the decision: Once the application is filed along with the supporting documents, one has to wait for the decision on the application. Upon a positive decision, the residence permit shall be granted to the investor and his family.

The Golden Visa program provides for the possibility of residence in Portugal for an investor and his family, working, and studying, as well as traveling to the Schengen countries without a visa. Residence for five years with a residence permit creates the ground for application either for permanent residence permit or citizenship of Portugal.

Opening a company in Portugal for a foreign investor creates not only business expansion and access to the European market but also opens an opportunity to obtain residence through the so-called Golden Visa program. This opens a lot of opportunities for personal and professional development in conditions of comfort for investment and taxation.

What is written in the charter of a company registered in Portugal?

The object of the memorandum on which a company is registered in Portugal is a basic charter document with the basic outlines of operation, management, and organizational structure. This document is needed for the registration of the company within the Portuguese Commercial Register and forms the legal grounds for the internal and external activities of the company. The Charter needs to be made by observing the current law of Portugal with several mandatory articles. We will discuss in this article the essential parts that must be mentioned on the charter of a company in Portugal.

 How long does it take to set up a company in Portugal?

Establishment of a company in Portugal can be performed in significantly different terms, depending on many factors influencing the process, namely the type of company, special permits needed, and your readiness to provide the required documents. Let’s go into details concerning the major steps to be followed and approximate deadlines for establishing a company in this romantic country.

Preparatory stage

Prerequisites before starting a company:

1. Company form selection: Sole proprietorship, limited liability company (Lda.), joint stock company (SA) – these are just some of the forms your business can take in Portugal. In choosing the best option, it depends on your business goals and may require a recommendation from a lawyer.
2. Choice of name and checking for uniqueness: To check whether the chosen name is not yet included in the Portuguese register of companies.
3. Preparation of documents: Preparation of the Statutes and personal documents of the founders.

Registration

After all the documents are prepared and the name is chosen, it is time to register the company. This can be done in Portugal either online, via the portal Empresa na Hora, or in person at one of the registration centers.

• Online: If you have all the documents prepared, which you must, and have opted for a standard name from the suggested list, this takes only a few hours.
• Registration through the registration center: If you prefer personal communication or have a unique company name, the process can take from several days to several weeks.

Post-registration procedures

After registering your company, you will need to follow a few additional steps:

• Obtaining a Tax Number (NIF): This is usually done automatically during the registration process.
• Opening of bank account: This can take different lengths of time, depending on the bank.
• Social Security registration: A necessity, as one needs to conduct business and pay taxes.

On average, from the moment of preparation of all necessary documents, complete registration of the company in Portugal may take from some days up to several weeks. In your particular case, it might take more or less time depending on the specific conditions, which can involve obtaining special licenses and permits. The key factor determining the overall period of time the process will take is your readiness and accuracy in collecting and submitting all the required documents.

It is always desirable to use the services of professional consultants who specialize in firm setups in Portugal to accelerate the process and minimize risks.

What kind of activities a company can perform in Portugal?

Company forms in Portugal have plenty of business activities that can be performed, and for which both locals and foreigners can apply. From this point of view, the great variety of possibilities makes Portugal an attractive destination for international entrepreneurs and not just for tourists. Let’s have a closer look at some of the most important sectors and opportunities:

Tourism and Hospitality

Tourism is one of the leading sectors in the structure of Portugal’s economy. Companies are allowed to operate hotels, establish travel agencies, and conduct excursions and events. With the country steeped in historic heritage, cultural traditions, and picturesque landscapes, it opens vast perspectives for business implementation in this field of activity.

Technologies and Innovations

It actively develops the technology and innovation sector. This is a good ground for growth for startups and IT companies specializing in the development of software, mobile applications, artificial intelligence, and blockchain technologies. Such international technology conferences as Web Summit take place in Lisbon and Porto on a regular basis, which contributes a lot to the development of the innovation community.

Agriculture and Manufacturing

Agricultural products of Portugal include wine, olive oil, among others. Firms which specialize in the production and export of such commodities may capitalize on the excellence of the local raw materials and favorable climate. Other possible niches involve organic farming and the creation of ecological agriculture technologies.

Energy and Sustainable Development

Already now, the Portuguese renewable energy sector is being actively developed: solar, wind, and hydropower. The companies working in this area may contribute much to the country’s sustainable development and benefit from progressive government support programs.

Financial and Advisory Services

On the other hand, the financial and service sectors are open to both foreign and local participation. Consulting, financial planning, insurance, and banking play a significant role in the Portuguese economy. In these areas, foreign investors and entrepreneurs have a very good opportunity to render novel solutions and high-quality services.

Real Estate and Construction

From every part of the world, investors are attracted to the stable and full-of-prospects real estate sector in Portugal. Most companies dealing in project development, construction, and real estate management will find numerous opportunities in business growth.

Equally varied is the kind of enabling environment which Portugal is offering for a range of business activities: from traditional areas like tourism and agriculture to innovative ones like technology and renewable energy. Flexible legislation, tax incentives for investors, and the advantageous geographical location of Portugal all provide an ideal setting for businesses. For the development of a successful business in Portugal, detailed knowledge concerning local specifics of the market, culture, and legislation, which requires their deep analysis well in advance of the beginning of every project and, if necessary, consulting with local experts, is required.

Must a Company in Portugal Have Employees?

Portuguese law does not demand an absolute employee obligation on all firms whatsoever. Individual entrepreneurship examples like Empresário em Nome Individual and the limited liability companies known as Sociedade por Quotas, Lda., can operate without hired personnel, provided the activities in question do not demand that more labor be used to complement their efforts.

Size and specifics of activity

Whether employees should be hired or not depends on the scale of the business, as well as the peculiarities of the particular activity being carried out. Small businesses or startups, at the very beginning of the operation, may not need full-time employees, provided founders can handle most tasks themselves. At the same time, business expansion and growing volumes of activities will necessarily come to involve additional workers.

Management and operation

In some cases, employee availability is essential for offering the necessary level of service, producing goods, or performing works. Companies would consequently need to hire employees and ensure full compliance with all the provisions set by the Portuguese labor legislation regarding the effective employment of workers, such as paying taxes and social contributions.

Outsourcing and freelancing

The modern labour market offers companies flexible forms of cooperation with performers, such as outsourcing and freelancing. It enables the business to optimize costs and have an opportunity to scale the business activity without keeping the great staff at all times. Such models of work are especially relevant in the field of IT, creative industries, and consulting.

Whether or not a company needs to have employees in Portugal, there is no single answer to this question. The type of business involved, the size of the business, strategic goals, and market conditions will make a difference. It would be worth considering this issue in view of the needs of one’s enterprise, both at the moment and in the future, and the opportunities for optimization and efficiency that the labor market can offer. Anyway, while making the decisions on hiring, one should learn from local laws and obligations towards employees in order to guarantee stability and development for the company.

How to Choose a Company Name in Portugal

Naming a company in Portugal is the second most important stage in the incorporation process, which requires consideration and strategy. Apart from reflecting the essence of your business, it will also be essential in creating a first impression with potential customers. Here are some recommendations to help you choose the right name for your company in Portugal.

Naming a company in Portugal involves a lot of creativity, research, and strategic planning since it needs to identify not only your business but also be memorable, unique, and legally protected. Give sufficient time and attention to this stage since choosing the right name contributes much to the successful positioning of your company in the market and creation of a good image among consumers.

Business Register in Portugal

The Business Register in Portugal is a fundamental tool under the Portuguese economic order, which guarantees total publicity and availability of information concerning legal persons under Portuguese law. Therefore, it turns to be a very helpful mechanism for businesspersons and investors, as well as for state and control bodies. In the article below, we present the structure of this body, the tasks it performs, and the procedure for registering businesses in Portugal.

Structure and management

The Business Register in Portugal is under the care of the Instituto dos Registos e do Notariado (IRN). IRN is responsible for the registration of legal persons, such as companies, associations, and other forms of organizations, as well as foundations. The Register makes available information with regard to the legal status of companies, the respective amounts of their authorized capital, and governing bodies, as well as changes that have taken place.

Functions of Business Register

A business register performs several functions, which include:

1. Legal Transparency: Gives access to the stakeholder with regard to legal information about the company.
2. Business and Consumer Protection: Helps in preventing financial fraud and conflict of interest through dependable business information regarding companies.
3. Ease the way of doing business: Facilitates buying, selling, or transferring business, etc., amongst other legal transactions.
4. State and Accounting Tax Assistance: Doubtless helps with tax bookkeeping and statistical bookkeeping.

The process of registration of business

Registration for a new company in Portugal can be effected through successive steps, as stated below:

1. Pre-selection and reservation of the company name: Before registering, one must check the uniqueness and make the reservation of the company name through the “Pre-selection of the name” service – “Pedido de Certidão de Admissibilidade de Firma ou Denominação”.
2. Registration at the Conservatory of Company Registration (Conservatória do Registo Comercial): The documents are submitted to the registering body for registration into the commercial registry.
3. Obtaining a tax number and registration with the Internal Revenue Service: Upon registration, the company gets a tax number-Non fiscal identity number, NIF-and is registered with the Internal Revenue Service.

Online registration

It was greatly simplified by the ability to register a business through the web portal Empresa Online in recent years. The online option gives one the opportunity to register a company, make changes in the constituent documents, and even close one’s business online.

The business register in Portugal is an integral component of the business climate in the country, in that it does provide a general legal framework enabling and supporting commercial activities. With a smooth way of registration and access to information online, the register protects the rights of businesses and consumers alike. Simplified registration and online access make establishing and developing a business in Portugal easier and more attractive for entrepreneurs from all over the world.