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Open a Fund in Portugal

Open a Fund in Portugal

Retail funds can be established in Portugal, in respect with the applicable laws and EU directives. UCITS are Undertakings for Collective Investment in Transferable Shares which can be easily established, a matter where our company formation specialists in Portugal can provide support and guidance. The same team can offer assistance for opening all sorts of entities, among which, the limited liability companies in Portugal, joint venture companies, sole proprietorships.

What types of investment funds are available in Portugal?

As mentioned above, UCITS are among the funds which can be established in Portugal and meant for the investments of capital gained from the public. AIFs or Alternative Investment Funds can be opened in Portugal, and are publicly issued real estate investments, in respect with the EU Directive 2011/61. Open-ended and close-ended retail funds are also types of investment funds that can be in the attention of a domestic or foreign entrepreneur.

Details about open-ended retail funds

Open-ended retail funds are available in Portugal and can be created with the support of financial services groups registered in the country. The following information explains how open-ended retail funds work:

  • open-ended funds are useful investment tools that work with customers’ savings;
  • • there are many financial institutions in Portugal that deal with open-ended investment funds;
  • • the Portuguese Fund Managers Association oversee the activities of funds established in this country;
  • • one must have a management company when opening an open-ended fund in Portugal.

If you would like to open a fund in Portugal or if you are interested in company formation in Portugal, you can talk to one of our company formation representatives in Portugal.

Closed-ended retail funds in Portugal

Compared to open-ended retail fundsopen-ended funds are not that  chosen by investors and that because the first ones can be easily transferred. This is why the market for closed-ended retail fund is smaller, according to recent statistics. However, if you are interested in such funds, feel free to ask for the support of our consultants.

Rules for establishing funds in Portugal

The regulatory framework for funds in Portugal is straightforward and based on the directives established by important authorities and bodies in EU. The Portuguese Security Code which entered into force in 2000, alongside the Undertakings of Collective Investment Law, plus specific EU regulations are among the laws controlling the funds available in Portugal. The Securities Market Commission or CMVM in Portugal is the main regulatory body of retail funds in this country. This institution authorizes and supervises the funds in Portugal. Above all, the National Bank of Portugal oversees the activities of all financial institutions in this country.

What are the necessary documents for opening a fund in Portugal?

KIID is the Key Investor Information Document which needs to be drafted for opening a fund in Portugal. Also, the prospectus of the fund must comprise complete information about the fund regulation. These documents, alongside papers proving the approval of the activities of the fund by parties involved must be drafted for the authorization of CMVM. It is important to know that it takes around 20 days until the authorization is confirmed, however, there won’t be an announcement made in this sense, if the fund is accepted. In the case of a refusal from the CMVM, investors have the possibility of making a new application and revise the documents.

Can funds be marketed in Portugal?

Yes, funds can be promoted via local newspapers, on media channels and on the internet with the help of specialized websites, but not limited to these. Opening a fund  in Portugal might seem complicated, but the support of our company formation agents in Portugal can prove necessary and mandatory and that because you can skip potential errors at the time of registration.

In matters of investments in Portugal, foreigners have numerous opportunities in most of the fields and can pay attention to a few facts and statistics in this direction:

  1. Around USD 4.90 million was the FDI inward flow for Portugal in 2018.
  2. Approximately 27% of the total FDI stock in Portugal were directed to the financial and insurance services sector in 2018.
  3. Of the total FDI stock registered in Portugal last year, around 19% come from Spain.
  4. An investment of around EUR 350,000 grants the Portuguese citizenship.

If you are an investor interested in opening a fund in Portugal, we recommend you contact our company formation specialists in Portugal.