Since 1992, Feod Group has been providing a wide range of immigration, corporate, and legal services in Portugal and abroad. The company includes corporate lawyers and Portuguese attorneys.
✓ Remote company registration in Portugal and Madeira
✓ Opening corporate and personal bank accounts
✓ Company and employee relocation
✓ Setting up a physical company office (Substance)
✓ Tax optimization and changing tax jurisdictions
✓ Obtaining residency in Portugal for the whole family
✓ Verification of the source of funds
Company Registration in Portugal
In recent years, registering a business in Portugal has become highly popular among entrepreneurs. The government of Portugal is keen on attracting capital and fostering a competitive, sustainable, and business-friendly environment for large, medium, and small companies alike.
Why Register a Company in Portugal?
✓ Top Tax Residency: Portugal is listed among the “Best Tax Residencies in Europe” and ranks in the top 5 European countries for ease of doing business.
✓ Access to the EU Market: A Portuguese company allows you to conduct business throughout the European Union, ensuring international reach.
✓ Tax Optimization: Benefit from a favorable tax system and the possibility of obtaining non-domicile tax residency status to optimize taxation.
✓ Economic Zones: Utilize free economic zones like the Madeira International Business Center, which offer tax incentives.
✓ Multilingual Jurisdiction: English is widely spoken and used as a business language alongside Portuguese.
✓ Residency Benefits: Obtain Portuguese residency for the whole family through business immigration, with the potential for future citizenship and a Portuguese passport.
✓ Remote Registration: You can register a company in Portugal remotely.
✓ Ideal Living Conditions: Portugal boasts an excellent geographical location, advanced infrastructure, high European living standards, social security, quality healthcare, a mild climate, and natural beauty.
Companies in Portugal
In Portugal, there are three types of companies with different criteria and distinctions, including taxation:
⇒ Mainland Portugal Registered Companies: Companies registered on the mainland of Portugal.
⇒ General Registered Companies on Madeira: Companies registered under the general scheme on the island of Madeira.
⇒ IBC Scheme Companies on Madeira: Companies registered on the island of Madeira under the conditions of the Madeira International Business Center (IBC).
Please note that if you want to start your business in Portugal, there is no need to visit the country personally. Feod Group specialists offer services for remote company registration in Portugal and Madeira!
Madeira International Business Centre
The Madeira archipelago is an autonomous region of Portugal located in the Atlantic Ocean, just a 3-hour flight from major European capitals.
Madeira is a special economic zone offering numerous tax incentives aimed at attracting foreign investors and entrepreneurs.
The Madeira International Business Centre (MIBC) has been approved by the European Union and fully complies with EU legislation. The special tax regime has been extended by the EU until 2027.
All EU directives apply to Madeira, ensuring a stable legal system that fully protects the rights and interests of investors.
Why Register Companies in Madeira?
✓ Madeira is not considered a “tax haven” and is therefore not included in any international blacklists. Companies in Madeira are not classified as offshore entities.
✓ The region offers a unique system of tax benefits, including the lowest corporate tax rate in the EU at 5%.
✓ Companies registered in Madeira are Portuguese entities and are automatically assigned a VAT number, providing direct access to the EU market.
✓ Companies registered in Madeira are exempt from notary and registration fees.
✓ Operating costs in Madeira are lower compared to other EU regions.
How to Register a Company in Portugal and Madeira
To establish a business in Portugal, foreign entrepreneurs must first choose the type of company they want to register.
The Most Common Types of Companies:
⇒ Private Limited Liability Company (Sociedade por Quotas, “LDA”)
LDA is the most common type of business in Portugal, similar to a limited liability company. It can be registered with a single shareholder. LDA is recommended for those looking to establish a small enterprise in Portugal with minimal initial capital investments and expenses.
⇒ Public Limited Company (Sociedade Anónima — SA)
A public limited company is more suitable for medium to large enterprises with significant investment capital and a more complex administrative structure. An SA requires a minimum share capital of €50,000 and at least five shareholders. Upon registration, 30% of the share capital must be paid, with the remaining 70% payable within five years. This type of company is primarily used by large enterprises.
⇒ Holding Company (Sociedade Gestora de Participações Sociais — SGPS)
SGPS companies must take the legal form of either an SA or LDA, with the sole purpose of managing shares of other companies.
⇒ Branch of a Foreign Company
A branch is registered in Portugal when a foreign parent company decides to expand. Having a branch in Portugal allows for obtaining work and residence permits for key employees from the parent company through the Intra Company Transfers (ICT) program. ICT offers a simplified process for obtaining residence permits in Portugal for both management and key staff. Branches of foreign companies in Portugal have no minimum capital requirements.
Key Steps to Registering a Company in Portugal:
Choosing a Company Name: Verify and register the company name with the National Registry of Legal Entities (Registro Nacional de Pessoas Colectivas).
Opening a Corporate Bank Account: Deposit the share capital.
Submitting Documentation: Submit the required documents to the National Registry of Legal Entities (Registro Nacional de Pessoas Colectivas).
Registering with Tax and Social Security Authorities: Ensure the company is registered with the tax authorities and social security in Portugal.
Notarizing the Incorporation Act: Register the incorporation act with a notary.
These are the primary steps, but other requirements and procedures may apply depending on the type of company, the number of founders, shareholders, etc.
Taxes in Portugal for Legal Entities
Tax rates and fees differ between mainland Portugal and the free economic zone of Madeira.
Corporate Tax Rates in Portugal
Taxable Income
Mainland Portugal
Madeira
Madeira International Business Centre (MIBC)
First €50,000
17%
11.9%
5%
Above €50,000
21%
14.7%
5%
Other Business Taxes in Portugal
VAT (Value Added Tax): Standard rate is 23% (22% in the Madeira autonomous region), intermediate rate is 13% (12% in Madeira), and the reduced rate is 6% (5% in Madeira).
Dividends: 0%, 25%, 35%
Social Security Contributions: 23.75% of employees’ monthly gross wages.
Business Taxation in Madeira under the MIBC Regime:
0% on dividends paid to non-residents of Portugal (legal or natural persons), provided they are not residents of a blacklisted jurisdiction.
Exemption from capital gains tax on the sale of shares in a Madeira company.
Exemption from property transfer tax (IMT) and municipal property tax (IMI) for real estate used exclusively for the company’s business activities.
Exemption from tax on royalties, service fees, or interest paid to third parties.
80% reduction in stamp duty, municipal transaction taxes, and municipal property taxes.
80% discount on regional and municipal fees.
Key Requirements for Companies under the Madeira International Business Centre (MIBC):
1.MIBC License:
To benefit from the preferential tax regime in Madeira, a company must obtain an MIBC license.
2. Eligibility Criteria:
Licensed companies must meet one of the following requirements:
Create 1 to 5 jobs within the first 6 months and make a minimum investment of €75,000 in fixed assets within the first 2 years of operation; or
Create 6 or more jobs within the first 6 months.
3. Source of Profits:
The company’s profits should not originate in Portugal, except when business relations are established with another Portuguese company that holds an MIBC license. If profits are derived from activities with Portuguese resident companies, the company will be taxed at the general corporate tax rate in Madeira—11.9% or 14.7%.
Portuguese lawyers and Feod Group specialists will support all client actions related to the purchase or registration of a business in Portugal. They also provide comprehensive services for obtaining residency permits for the client’s entire family.
Identify the most advantageous region in Portugal for conducting the chosen type of business.
Assist in drafting a business plan.
Create a plan for tax optimization.
Prepare your documents to confirm the source of funds.
Assist in selecting real estate and prepare all necessary official documents.
Help organize the company’s office, provide accounting services, and offer full legal concierge services.
Prepare a selection of schools and universities for your children’s education in Portugal.
After moving to Portugal, provide consulting on business operations, extend your stay in the country, and assist in obtaining permanent residency and Portuguese citizenship.
If you are interested in registering a business in Portugal, we highly recommend seeking an individual legal consultation with our specialists first.
OBTAIN PROFESSIONAL IMMIGRATION ADVICE
FAQ
✓ Can a foreigner open a company in Madeira?
Yes, both an EU resident and any other foreigner can register a company in Portugal and Madeira.
✓ How to Open a Company in Portugal or Madeira?
To start your business in Portugal or on the island of Madeira, you need to go through several key steps: choose the type of company, register the company name in the national registry, notarize the articles of association, open a Portuguese corporate bank account and deposit the share capital, obtain the special MIBC license (only for companies in Madeira), register the company with the national registry and tax authorities.
✓ Can a Company be Registered in Portugal Without Personal Presence?
Yes, personal presence for company registration is not mandatory. We provide services for remote company registration in Portugal and Madeira through power of attorney to a Portuguese accredited lawyer.
✓ How to Open a Bank Account in Portugal?
To open a bank account in Portugal, you need to gather a set of documents, translate and authenticate them, fill out the bank forms, undergo a bank verification process, and potentially attend an interview with a bank representative if required.
✓ How to Obtain Portuguese Residency Permit (Golden Visa) through Business Registration?
Once you have registered your company, opened a bank account, and engaged in genuine business activities, family members of the company’s founder or manager can obtain residency in Portugal through business immigration programs. Learn more about business immigration options in Portugal
Entrepreneurs can also obtain a residency permit through the Golden Visa program by investing in Portuguese business amounting to at least €500,000.
One advantage of the Golden Visa is that the applicant does not need to reside continuously in Portugal to maintain and renew their residency permit.
Main requirements for companies on the mainland Portugal and Madeira (Substance requirements):
Open and active corporate bank account in Portugal.
Existence of a legal address for the company and/or suitable premises for carrying out specific company activities.
Director and/or permanent employee residing in Portugal.
Head office or effective management of the company located in Portugal.
Article author
Luhina Iryna Head of department Visas and Immigration Ukraine
In 2006 graduated from the National Aviation University (NAU), Kiev with a degree in Philology, Translation. Irina Lugina has many years of successful work experience in large companies with a voluminous workflow. Within Feod Group specializes in: visa support by category for financially ...
In 2006 graduated from the National Aviation University (NAU), Kiev with a degree in Philology, Translation. Irina Lugina has many years of successful work experience in large companies with a voluminous workflow. Within Feod Group specializes in:
visa support by category for financially independent foreigners, visas for entrepreneurs and investors in the EU, Great Britain and the USA.
preparation and compliance of packages of documents for registration of companies in low-tax jurisdictions, opening bank accounts.
obtaining a residence permit and permanent residence in Ukraine on the basis of marriage and through company registration.
Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.
The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.
Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.
We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.
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