The construction sector in Portugal met different changes in the past decade, particularly at the time the economic crisis affected most of the European countries. Things are now quite the opposite, as many international entrepreneurs decide on setting up construction companies in Portugal and benefit from the huge opportunities offered and in a large percent sustained by the authorities. If you are interested in opening a company in the construction sector in Portugal, you are invited to talk to one of our company formation specialists in Portugal and solicit information and support.
Who can set up a construction business in Portugal?
Any business person who wants to thrive in Portugal’s construction field can decide on a company that can have varied activities. Both local and foreign entrepreneurs have equal rights when it comes to investments, and the authorities make no differences in terms of formalities, licenses and permits. The Planning Permission in Portugal is obtained at a local level, but first of all, companies in the construction sector must have environmental licenses for legally build structures in different cities in Portugal.
How do I open a company in the construction sector in Portugal?
The formalities for opening a company in Portugal have been significantly simplified in recent years, and business in the construction field can activate under the rules of private limited liability companies or LDAs. Among the requirements for opening an LDA un Portugal, the following are quite important and should be in the attention of overseas entrepreneurs right from the start:
- At least one shareholder can set up an LDA in Portugal, and a business name verification is needed prior to the company incorporation.
- EUR 5,000 is the minimum share capital for a private limited liability company which needs to be deposited in a local bank account.
- There is no obligation of appointing a board of directors, however, it is necessary to have a managing director.
- The registration for tax matters and social contributions needs to be observed before the company activates on the Portuguese market.
- Special licenses and permits are needed for opening a company in the construction field in Portugal.
It is recommended to have assistance and support from a team of company formation agents when starting a business in Portugal as a foreign entrepreneur, as the language barrier or specific regulations might represent an impediment. More than that, one of our agents can act as the legal representative of your firm in Portugal, with a power of attorney.
The registration with INCI in Portugal
Another step that needs to be considered at the time the construction company is formed is to register the business with INCI (Instituto da Construçao I do Imobiliario), the Institute for Construction and Real Estate in Portugal. This institute is in charge of varied activities among which, ensuring the sustainability and the competitiveness on the market, making sure that companies in this field act in a fair manner, and combating the illegal competition or unauthorized constructions in the country. This is the body that regulates the construction field in Portugal. Once the approvals from INCI are issued, companies in the construction field can commence the activities.
Short facts about the construction sector in Portugal
The strong economic growth of Portugal is sustained by varied sectors, among which, the construction field is no exception. Many construction companies are involved in different projects related to the basic infrastructure in the country (highways, bridges, motorways, etc.), or civil engineering, sustained in a large percent by the Portuguese government. There are also private companies that developed numerous residential zones and resorts, considering the potential of the tourism in the country. Several programs introduced by the authorities aimed to create residential buildings and renovate the existing ones, mentioning that the legislation is transparent and allows investors set up correct prices on the market. Below we have gathered information and statistics about the construction sector and about the investments in Portugal:
- • EUR 6.7 billion represent priority investments for the country’s infrastructure by the end of 2020;
- • approximately USD 4,895 million represented the FDI flow for Portugal in 2018;
- • Citizenship by Investment is an important programme in Portugal, allowing entrepreneurs to obtain naturalization for minimum investments of at least EUR 350,000;
- • Portugal ranks 34th out of 190 economies worldwide, as stated by the “2019 Doing Business Report”.
Entrepreneurs from abroad who want to set up a construction company in Portugal are invited to contact our company formation agents in Portugal for complete support and information.