Set up a Company in Portugal

If you are interested in setting up a company in Portugal, we advise you to consult a legal expert before starting the process. For a better understanding of the requirements, our team of company formation agents in Portugal is at your disposal with complete information and assistance.

Our company, Lexidy Law Boutique SLP, provides a wide range of legal services, based on the support of a professional and experienced team of attorneys who speak English and German. Lexidy Law Boutique SLP was founded by Federico Richardson Alborna, an English-speaking lawyer in Spain registered at the Bar Association with the number 40.082.

What types of business entities can I open in Portugal?

In order to incorporate a small business or a medium-sized one with a reduced amount of capital and a liability limited by the contribution to the capital, the investors are advised to form a private limited company (sociedade por quotas – LDA) in Portugal.

What are the main steps for opening a company in Portugal?

Public and private limited liability companies can be easily set up in Portugal, following these steps:

1. Verify the business name and make a reservation with the Portuguese Trade Register.

2. Appoint a legal representative for your company in Portugal.

3. Draft the Articles of Association with information about the owners, business activities, etc.

4. Open a bank account for depositing the minimum share capital of EUR 1 for a private LDA.

5. Apply for licenses and permits in accordance with the company’s activities.

6. Register for tax purposes and social contributions in Portugal.

It is mandatory that the name of the newly formed company in Portugal is checked at the National Registry of Collective Entities (Registro Nacional de Pessoas Colectivas, RNPC).  If the name is available, it can be reserved for a period of 48 hours if a fee is paid. Also, a pre-approved name can be selected from the RNPC database.

In order to obtain a certificate of registration, the founders of an entity must submit an application, followed by the articles of association and the certificate of name approval, but no later than 15 days from the incorporation.

When receiving the above, the Portuguese authority will deliver the corporate tax number, the company’s social security number, and the declaration of commencement of business activities. The entity’s employees must be registered at the Centros de Formalidades das Empresas or at the Business Registry Office 24 hours before they start their activity or 10 days at the latest after the declaration of starting the business. 

We invite you to watch a short video about company incorporation in Portugal:

What documents are required to incorporate a company in Portugal?

Before starting the company incorporation process, you should prepare a set of essential documents that will be requested by the Portuguese authorities and, where applicable, by financial institutions involved in the registration process.

Our team of legal experts in Portugal can assist you through the entire procedure. The required documentation is:

• Certified copy of a valid passport;
• Proof of residential address (such as a utility bill or bank statement issued within the last three months);
• Portuguese Tax Identification Number (NIF);
• Power of Attorney (where the incorporation process is carried out through an authorized representative);
• For subsidiaries or branches: the parent company’s corporate documents, including the Certificate of Incorporation, Articles of Association, and the Board Resolution authorizing the establishment of the Portuguese entity.

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

The timeframe for setting up a company in Portugal depends on the chosen procedure, but it can generally take from around one week for urgent registration to up to several months when standard registration and bank account opening are included.

• NIF Obtainment – 2-5 business days.
• Company Name Reservation – approx. 48h.
• Registration – Standard: 1.5-3 months | Urgent: ~1 week (€600 gov. fee).
• UBO Declaration – approx. 48h.
• Bank Account Opening – up to 1.5 months (traditional banks) or faster via an online bank.

What are the company formation costs in Portugal?

Here is information about the business start-up costs you need to consider in Portugal:

1. Registration fee: maximum EUR 600 for a pre-approved business name, company documents, certificate, etc.

2. Virtual office costs:  around EUR 50-100 per month for a complete virtual office package.

3. Minimum share capital: EUR 1 for opening an LDA in Portugal.

4. Company formation fee: depends on certain details; contact us for an immediate quotation.

5. Accounting costs: starting from EUR 150 plus VAT per month for varied accounting services.

What is included in my company formation package?

Our law firm in Portugal offers comprehensive company incorporation services, including:

• NIF + Tax Representation for one shareholder/director.
• Company name reservation and Company Activity registration.
• Drafting of Articles of Association.
• Ultimate Beneficial Owner (UBO) declaration.
• Support with corporate bank account opening.
• Referring an accountant to declare the initiation of activity.

When do company modifications need to be reported in Portugal?

If your company suffers modifications like changing the company structure or replacing the board of managers, for example, you should notify the Portuguese Trade Register right away. The same institution is in charge of mergers and acquisitions, modifications of contractual clauses, share capital changes, company restructuring, company dissolution, and many more.

For a quick overview of the company incorporation process in Portugal, we invite you to take a look at the infographic below:

Why is a Portuguese tax number (NIF) and fiscal representation required for a shareholder or director?

In order to set up a company in Portugal, you must obtain a Portuguese Tax Identification Number (NIF), which is one of the first legal requirements for foreign shareholders and directors who wish to establish a company in Portugal. In certain cases, particularly for non-residents, the appointment of a fiscal representative may also be necessary to ensure compliance with Portuguese tax obligations and facilitate communication with the tax authorities.

How can I open a corporate bank account in Portugal?

After the company has been incorporated, opening a corporate bank account is an essential step for managing business finances and, where applicable, depositing the company’s share capital. Portuguese banks generally request the company’s registration documents, tax identification number (NIPC), identification documents of the shareholders and directors, and information regarding the company’s business activities.

What information must be included in the Articles of Association?

The Articles of Association are the company’s main documents needed for company formation in Portugal, which contain complete information about:

• The name of the company you want to set up in Portugal;
• The name of the shareholders, their nationality, and the country of residence;
• The future activities of the newly-opened company in Portugal;
• The responsibilities and the rights of directors managing the company;
• The transferability of shares and the assignment of the rights of shareholders;
• The voting rights in the company and details about the dissolution procedure.

Our affiliations

Lexidy Law Boutique SLP is part of the Camara de Comercio Hispano – Sueca de Barcelona (Sweden – Spain Chamber of Commerce in Barcelona), Il Lustre Col-Legi de L’advocaia de Barcelona (Barcelona Bar Association), the International Bar Association and Deutsch-Spanische Juristenvereinigung eV Hispano-German Association of Jurists (German-Spanish Association of Lawyers), prestigious institutions of high importance.

For more details related to company incorporation in Portugal, please contact our local specialists.