Portugal offers varied business opportunities in most of the sectors, including in the agriculture field where entrepreneurs can benefit from an encouraging business environment, from a proper climate and excellent conditions. There are numerous family farms established in Portugal, and the private limited liability company might represent the ideal structure for this kind or activities. Entire support and assistance are offered by our company formation representatives in Portugal, so feel free to address your requests to our team at any time.
How do I open a company in the agricultural business in Portugal?
The incorporation process of a company in the agriculture sector is not complicated, and persons wanting to activate in the agricultural field can set up a private limited liability company in Portugal, following these conditions:
- EUR 5,000 is the minimum share capital for opening an LDA in Portugal.
- A board of directors and a representative need to be appointed for your firm.
- The name of the business is followed by LDA or “Sociedad por Quotas”.
- The registration for tax purposes is made after the certificate of incorporation is issued.
And LDA in Portugal offers 100% control in the company, so foreign entrepreneurs do not need to sign an agreement with a local investor for establishing a business. The support of our company formation specialists in Portugal can help business persons skip the registration process, as our consultants can act on your behalf with a power of attorney.
Can I establish an EIRL in Portugal?
Yes, you can decide on this kind of structure and open an EIRL for your activities in the agricultural sector in Portugal. This is the sole proprietorship in Portugal and the simplest business form available. A sole trader can start the operations in the agriculture sector and consider the features of this kind of business structure, referring to the liabilities in the firm. The registration for tax purposes is mandatory for your sole proprietorship, so make sure to comply with the requirements in this matter. Also, if you need support and guidance for opening a sole proprietorship in Portugal, feel free to get in touch with our company formation agents in Portugal and send us your requests.
Agriculture in Portugal
The authorities in Portugal are aware of the potential of the agriculture sector and the profits generated in this field. There have been numerous investments made in this area, and besides that, the Ministry of Agriculture, Forestry and Rural Development in Portugal sustained a part of the farmers who suffered from fires in 2017 with approximately EUR 38 million which were paid this year. Entrepreneurs from abroad can have Portugal in their attention and choose the agricultural sector for future activities or family farms. Large companies from abroad can place their operations in the agricultural sector, or local investors can have export-oriented agricultural businesses in Portugal. The country has an excellent climate for the production of green vegetables, cereals, olives, mushrooms, fruits and so on. Also, forestry is an essential part of the agriculture field, so there are numerous companies activating in the manufacturing sector (paper, furniture, cork, etc.).
Taxation in Portugal
Portugal is quite appealing from a taxation point of view, and investors from abroad are protected by the double taxation treaties signed with countries worldwide. 21% is the corporate income tax rate in Portugal and 17%, the rate applicable in Madeira. Entrepreneurs in Portugal need to observe the wealth tax of 1% which was introduced in 2017 and which is applicable to property owners summing up more than EUR 1 million. Food products, healthcare services and hotel accommodation are subject to a VAT rate of 6%, however, the general VAT rate is set at 23% in Portugal. If your company established in the agricultural sector in Portugal deals with import activities or farm product sale, you will have to register it for VAT purposes. Here are some details about the taxation in Portugal:
- • for annual incomes below EUR 650,000, the VAT report is made every 3 months;
- • there is no VAT for an annual turnover of less than EUR 9.976/year;
- • property buyers in low tax jurisdictions in Portugal are subject to a real estate transfer tax of 10% rate;
- • the stamp duty of 10% rate is applicable to non-close recipients instead of inheritance tax.
For more details about how you can open a company in the agriculture sector, please feel free to contact our company formation specialists in Portugal.