Set up LDA in Portugal

Deciding on a business in Portugal as a foreign investor can imply finding a suitable business form, and that is the private limited liability company or LDA as it is known. Our specialists in company formation in Portugal are at the disposal of investors who are interested in opening such a structure by managing the formalities and related registration procedures. Please explore this article and find out more about LDAs in Portugal.

What is a Portuguese LDA?

A Portuguese LDA comes from a private limited liability company in Portugal, also known as quota or sociedade por quotas de responsabilidade limitada. This is the most common type of business structure in Portugal, especially for small and medium-sized companies. Here are other important aspects to consider about LDAs in Portugal:

• one should note that an LDA in Portugal can be set up in approximately 2-4 weeks, while the corporate bank account takes around 4 weeks;
• the minimum share capital changed for private LDAs in Portugal in 2026. With only EUR 1, you can set up a company in Portugal and operate under the LDA structure;
• a Portuguese private limited liability company can be set up by at least one shareholder, regardless of nationality or residency.

You might want to check this infographic with details on LDAs in Portugal:

Registration of an LDA in Portugal

The business registration in Portugal is done with the Commercial Registry. Among the important formalities that must be respected are:

• verification and reservation of the business name with this authority are mandatory;
• a series of documents is required for LDA incorporation in Portugal. Our local agents can help you in drawing them up;
• the standard application form must include information about the business, activities, headquarters, shareholders, etc.;
• in addition to the standard documents, proof of paid incorporation fee and share capital is also required.

We recommend that those interested in registering an LDA in Portugal benefit from the full services offered by our local agents. We can act as company representatives while dealing with the Portuguese Trade Register.

What is the management structure of an LDA in Portugal?

The Company Law in Portugal does not mention the obligation to form a board of directors for a Portuguese LDA. The management role can be performed by a managing director who is appointed by the shareholders. On the other hand, the shareholder can also be the director of the firm who will be in charge of the decisions, operations, and business direction of the company. If a director is appointed separately, he/she cannot make all decisions; therefore, a general meeting has to be organized regularly.

Choosing the name for your LDA in Portugal

The name of the private limited liability company is registered with the National Registry of Companies in Portugal. At the time you choose the name of your business, it is recommended to conduct a name verification in this sense and to propose three names. As a mandatory condition, the chosen and approved name must contain “Sociedad por Quotas” at the end of it, or simply Lda. It is good to know that the authorities accept the name of the business in any language as long as it respects the above-mentioned requirement. One of our specialists can give information about business formalities in Portugal in 2026.

The benefits of LDAs in Portugal

Private limited liability companies in Portugal address to both foreign and local entrepreneurs wanting to operate on the market with the help of a simple form of business. The incorporation process of an LDA in Portugal is less restrictive and has fewer formalities. Moreover, the shares in an LDA can be 100% owned by a foreigner, meaning that there is no need for a local investor to create the business. It is good to know that there is no need for audits if the company is small or medium-sized. Requiring only one shareholder for creating an LDA in Portugal is another reason why investors from overseas decide on such a business structure, and more than that, the shareholder can be the director of the firm. Portugal is among the European countries that offer the possibility of creating a company with low capital, in this case, EUR 1 for a private LDA, as the law has recently been revised.

Understanding better the conditions for opening an LDA in Portugal can help foreigners commence the activities in this country within a few days; therefore, you may address your inquiries to our team of consultants.

Guide for starting a business in Portugal

As mentioned in this article before, the limited liability company or LDA is the proper business choice for domestic and international entrepreneurs in Portugal. Being a simple business structure, an entrepreneur can start the activities quite fast, as soon as the registration for taxation is made. We present you a short guide to help you understand how you can start a business in Portugal in 2026, without complications and with complete support offered by our specialists in Portugal:

• The activities of the future firm are usually established from the beginning by the business owners.
• The minimum share capital of EUR 1 needs to be deposited in a Portuguese bank account.
• Once you select the name for the business, you must make a reservation with the Portuguese Company Registry.
• If your activities require a specific business license, you need to make the necessary arrangements.
• The registration for taxes and social contributions can be made with our support.
• All the documents need to be drafted for thePortuguese Trade Register for approval.
• Once accepted, you can apply for a company stamp and get ready for business.

What company changes must you register for your LDA in Portugal?

If the company you own goes through certain changes, it is recommended that these are also filed at the Trade Register in Portugal. In other words, if the company changes its shareholders/managers/capital, its representative must ensure that these updates are registered with the aforementioned authority. Also, if the LDA is to be transformed into another business structure, the Portuguese Trade Register must receive this information. This process can be done online or in physical presence by filling out a standard form. We recommend that any changes made to companies be registered with this authority from the start in order to avoid warnings or penalties.

Company Law updates in Portugal in 2026

If the minimum share capital for LDA in Portugal was EUR 5,000 a few years back, this requirement is no longer valid. However, entrepreneurs can set up a company with EUR 1 as minimum share capital. On the other hand, you should be careful when applying for a name approval certificate for your LDA in Portugal. This can be done online on the official platform of the Registro Nacional de Pessoas Coletivas, where our local agents can take care of the formalities, with a power of attorney. The basis for company formation in Portugal is the Incorporation Act, a private document required for business registration, alongside the Articles of Association.

Statistics for setting up an LDA in Portugal

Portugal continues to attract entrepreneurs due to its business-friendly environment. Below you can find some recent statistics:

• direct foreign investments in Portuguese companies reached EUR 11.1 billion in equity alone in 2024, reflecting the establishment and expansion of local companies such as private limited liability companies (LDA).
• Total foreign direct investment transactions reached EUR 13.2 billion in 2024, while the total stock of foreign investment exceeded EUR 200 billion in the same year based on AICEP statistics.

So there is a massive investment in the capital of Portuguese companies. Therefore, if you are interested in setting up an LDA in Portugal, our specialist in legal matters can assist you during the entire process.

How can our Portuguese agents help you?

If you are a foreign entrepreneur and you are coming to Portugal for the first time to do business, it would be advisable to seek professional help. You can begin by starting on our website with a free case evaluation, and then our agents will take over your case. Opening an LDA in Portugal or any other business structure involves various formalities that entrepreneurs from abroad may not be familiar with. Therefore, we can assist in the following:

• drafting documents,
• presenting documents and registering them with the Portuguese Trade Register,
• maintaining constant communication with the authority mentioned above,
• filling out standard forms and complying with all incorporation procedures,
• preparing the formalities for the LDA registration for taxation, social security contributions, etc.

Besides assistance in company incorporation in Portugal, we also offer other services. For instance, you can benefit from the experienced team of accountants in Portugal. But for more details on our services, including setting up a company in Portugal, please feel free to contact us.