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Set up LDA in Portugal

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 2025. With only EUR 1 you can set up a company in Portugal and operated under the LDA structure.
  • 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:

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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 from time to time.

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 make 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 2025.

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. 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 recent law has 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 2025, 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. Our agents can help you.
  • The registration for taxes and social contributions can be made with our support.
  • All the documents need to be drafted to the Portuguese Trade Register for approval.
  • Once accepted, you can apply for a company stamp and get ready for business.

Company Law updates in Portugal in 2025

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 National 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.

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