One or more shareholders can set up varied business structures in Portugal, like limited liability companies, joint stock companies, limited or general partnerships. The good thing to know is that company stockholders have different responsibilities in the firm, and the Company Act in Portugal comprises information in this sense. If you would like to open a company in Portugal as a foreign shareholder, we invite you to talk to our team of company formation agents in Portugal and find out more about the conditions involved in such process.
How many shareholders can form a LDA in Portugal?
LDA is the limited liability company which can be set up by at least one shareholder and a minimum share capital of EUR 5,000. This is the preferred business structure for small and medium entrepreneurs in Portugal due to its simple form, registration and development. In terms of business management, the shareholders need to appoint the board of managers and also the legal representative of the firm. There are no complex regulations involved in the registration process, however, it is suggested to have a specialized team in company formation in Portugal who can handle the paperwork and other conditions implicated.
What are the responsibilities of shareholders in Portugal?
Owners of Portuguese companies have both rights and responsibilities in the firm. The Company Act in Portugal mentions the following provisions:
- The shareholders of a Portuguese company need to appoint the representative agent and the board of managers in the firm.
- The owners need to choose and agree the business name of the company in Portugal.
- The Articles of Association and the Memorandum of Association are the company’s main documents which need to be signed by the shareholders.
- The shareholders of a Portuguese company are directly informed by the financial status in the company.
The Portuguese authorities have improved and simplified the registration process of companies in Portugal, letting international investors have a fast entrance on the market. Even so, the support of our company incorporation agents in Portugal is at your service if you would like to skip the registration formalities and go straight to business in a professional manner.
Is a shareholder liable for debts?
Yes, the stockholders of a Portuguese company are liable for company debts as long as they do not surpass the value of the shares involved, or the amount of investments made in the company. The same thing is applicable to shareholders that guarantee a company loan through personal assets. In case the shareholder is also the company director, he or she will be directly liable in the case the company is insolvent but continues trading and doing business. Also, if the stockholders raised funds through illicit methods to pay the creditors, they are fully responsible in such situation.
The advantages of stockholders in Portugal
The main benefit is the limited liability of shareholders of Portuguese companies, meaning that in the case of company closure, the only assets lost will be the ones registered at the time the company was formed. In the case of investments, stockholders can decide on collaborating with other investors too and have access to more funds.
Partnerships and sole traders in Portugal – what are the responsibilities?
Sole traders in Portugal are directly involved in the business direction, including liabilities, if any. In case your business is subject to debts, and creditors are asking for money, the personal assets can be involved and claimed. However, it is recommended to have a good business plan in the first place, ask for the support of a business consultant who can provide a good and complete business plan, excellent advice and guidance in terms of finances and business direction. Such a support can be solicited from our team of company incorporation agents in Portugal at any time.
How can I open an LDA in Portugal?
The formalities for opening an LDA in Portugal are mentioned by the Company Law in Portugal, alongside the Commercial Code. Choosing the business name, preparing the Articles of Association, obtaining the necessary licenses and permits, registering for tax matters and applying for company seal are only a few of the business requirements for LDA registration in Portugal. The National Registry of Companies in Portugal is the institution in charge of company formation in Portugal, whether with foreign capital or not.
All the conditions of company registration in Portugal can be completely explained by our company formation specialists in Portugal, so do not hesitate to contact us.