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Open a Joint Venture in Portugal

Open a Joint Venture in Portugal

Companies uniting resources are known as joint venture companies in Portugal and are established to generate even more profits. In this matter, a temporary agreement might stand at the base of forming a joint venture in Portugal. The schemes through which joint venture companies are established can be explained by our team of company formation specialists in Portugal. They can also assist you in company incorporation in Portugal.

What are the steps for creating joint ventures in Portugal?

There are several schemes and structures through which joint ventures are created in Portugal. According to the Company Act in Portugal, an association, a partnership, a consortium or a complementary group of companies can form joint venture companies, once the specific business activities are established. Opening a consortium means creating an agreement in this matter and being subject to the following:

  1. Developing and implementing a series of acts to carry out specific activities of one of the companies.
  2. Company members can fabricate products and sell them on the market.
  3. A consortium can exploit the natural resources in Portugal.
  4. Specific projects can be implemented on the market if developed by a consortium.

The common activities and objectives stand at the base of joint ventures, including a consortium, the type of entity that can carry out any kind of activities as long as it respects the applicable legislation in Portugal. The experience of our company formation agents in Portugal in sustaining foreign investors opening companies in this country is recommended for entrepreneurs wanting to set up joint ventures in Portugal.

The registration of JVs in Portugal

Joint ventures in Portugal can be established under certain rules, among them the necessity of the personal documents of the stockholders. The following matters should be considered when creating a joint venture in Portugal:

  • Just like any other type of company, a JV needs the Articles of Association.
  • The admissibility certificate shows that the name of the company can be used in Portugal.
  • At least EUR 50,000 represents the share capital which needs to be deposited in a local bank account.
  • A written agreement is needed for consortiums serving as joint ventures in Portugal.

Creating an association in partnership in Portugal

Joint ventures take varied forms and among these, foreign entrepreneurs might be interested in association in a partnership where two or more business entities participate in both profits and losses if a contract in this sense is accepted. An association in partnership can have a contributor who deals with raising funds in the firm and a director or associate who carries out the activities and manages the company’s business direction on the market. It is important to know that the associate is directly responsible for any damages and losses that might occur and might involve the contributor part of the association. Because it is not mandatory to establish a written agreement in this matter, these types of associations can enjoy privacy and stay anonymous. 

Joint ventures as CGCs in Portugal

Joint ventures can be established as complementary groups of companies or CGCs in Portugal. CGCs have a legal status and are registered to improve the performance conditions of economic activities of a corporate entity or an individual with a legal personality. It is important to know that entities creating the CGC have mutual responsibility in matters of debt. The registration of a CGC in Portugal is made with the Portuguese Trade Register if the Articles of Association are provided. If you are interested in this kind of business entity, we kindly advise you to get in touch with our team and find out more details in this matter.

How do I create an EGEI?

The European Group of Economic Interests (EGEI) is another form of joint venture accepted in Portugal with the mention that such an entity can be established to upsurge and sustain the collaboration between European companies within the EU. This means that Portuguese companies can enter a joint venture with the ones from any European country. The Portuguese Companies Code comprises the general provisions for forming EGEIs in Portugal as general partnerships. The joint liability applies to EGEIs in Portugal, even for members who leave the group at a certain point.

Why can a joint venture be a good business option in Portugal?

The partners of a joint venture in Portugal can combine expertise and resources for their projects meant for business expansion in new markets. The partners are also the ones who share the business risks and rewards of the joint venture. Here are other interesting details about joint ventures in Portugal:

  • The partners of a joint venture in Portugal have common goals and can opt for the use of certain technologies, resources (including human resources), and dedicated capital.
  • Depending on the proposed and signed partnership, each of the founding members may have various responsibilities and roles in the company. In a joint venture in Portugal, there can be decision-making partners in charge of the business direction.
  • A new business entity is formed from a joint venture based on successful plans and projects of the partners involved.
  • The partnership agreed for a joint venture in Portugal must stipulate each partner’s rights, obligations, and responsibilities.
  • A joint venture can have a determined duration of activity. The owners can establish intellectual property ownership and resolve disputes and terminate such entity if that is the case.

Considering these clarifications, you can opt for the services offered by our agents for company formation in Portugal, respectively a joint venture. We are here to help you set up a company in Portugal.

Choosing a joint venture in Portugal for future developments

It can be said about joint ventures in Portugal that they are business alliances that let companies join forces for varied business opportunities. A good start on the international market can be this joint venture in Portugal, through a partnership agreement signed by strong companies that operate in the same sector of interest and that have common business goals. It is important that when choosing a joint venture in Portugal, the following aspects should be taken into account:

  • There must be common points and plans.
  • It is necessary to know the market of activities and to unite the resources and technology necessary for achieving goals.
  • Synergy is important because it can develop varied business opportunities that can be taken advantage of.
  • The idea of a joint venture in Portugal is to expand operations internationally.
  • With a joint venture, you can access various markets that could not be reached until now.
  • Also with joint ventures, it is possible to raise suitability for specific government and international funds and support which would not have been possible through other methods.

Making investments in Portugal

Portugal is among the countries with a strong development potential for those interested in this market. The stable business climate, the experienced and appreciated workforce as well as the advantageous tax system are among the advantages of Portugal in front of international entrepreneurs. If you want to open a company in Portugal, you might be interested in the economic direction of the country. Here are some statistics:

  • The automotive sector in Portugal contributed to the economic growth of the country, for Q4 of 2023 with approximately 7.9%.
  • Retail sales in Portugal grew by 2.3% in November 2023.
  • The real estate sector experienced a moderate increase at the end of 2023, with a price index increase of approximately 1.8%.

Besides the services of our local agents, you can also ask for the ones of our accountants in Portugal. If you are a foreign investor who wants to open a joint venture in Portugal, we recommend you give us a call and find out detailed information on this matter.