✓ Registration of companies in Madeira remotely ✓ Opening a corporate and personal bank account ✓ Organization of a real office of the company (substance) ✓ Obtaining the status of a tax resident ✓ Obtaining a residence permit in Portugal for the entire family ✓ Confirmation of the origin of the source of funds
In addition, we offer a full range of services for relocation and orientation in Portugal: organization of a company office, recruitment and recruitment services, accounting services, purchase and rental of real estate, selection of schools and universities for children, health insurance in Portugal and much more.
Madeira International Business Center
The Madeira Archipelago is an autonomous region of Portugal and is located in the Atlantic Ocean, a 3-hour flight from main European capitals.
Madeira is a special economic zone with a large number of tax incentives aimed at attracting foreign investors and entrepreneurs.
The Madeira International Business Center (MIBC) has been approved by the European Union and is fully compliant with EU legislation. The EU has extended the special tax regime until 2027.
All European Union directives are applicable to Madeira and thus guarantee a stable legal system that fully protects the rights and interests of investors.
Therefore, there are many reasons and advantages for opening a company in Madeira.
Benefits of doing business in Madeira
✔ Registered companies in Madeira are Portuguese and are automatically assigned a VAT number which gives direct access to the EU market.
✔ A special system of tax incentives (for example, Madeira has the lowest corporate tax in the EU – 5%) and the ability to change tax residency.
✔ Madeira is not considered a “tax haven” and therefore is not included in any international blacklist. Madeira companies are not offshore.
✔ Portugal has over 73 double taxation treaties.
✔ Low running costs compared to other EU regions.
✔ Possibility to obtain a residence permit in Portugal for the entire family.
✔ Ability to relocate employees to Madeira under the Intra Company Transferee program.
✔ Madeira also means safety, high quality of life, developed infrastructure, highly qualified workforce, mild climate and natural beauty.
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Company registration in Madeira
In order to open a company in Madeira, you first need to choose the type of company.
The most common legal forms of companies in Madeira are:
Private Limited Company (LDA)
LDA is an analogue of a limited liability company, it can be registered with the participation of one shareholder and a minimum capital of 1 euro per shareholder. There is also no need to appoint directors, you can appoint a manager who, by law, has the authority to manage the company.
Joint Stock Company (Sociedade Anónima – SA)
Joint-stock company with a minimum authorized capital of 50,000 euros and the number of shareholders – 5. It is also necessary to create a board of directors. With an authorized capital of up to EUR 200,000, 1 director and 1 shareholder are sufficient.
Holding company (Sociedade Gestora de Participacoes Sociais – SGPS)
SGPS companies must be in the legal form of SA or Lda., The sole purpose of which is to manage the shares of other companies.
Branch of a foreign company
Branches of foreign companies do not have requirements for the minimum size of the authorized capital.
Business registration in Madeira
Despite the special status and attractive tax regime, any foreign citizen who meets the legal requirements can register a company in Madeira.
Choosing a company name, checking and registering a company name in the National Register of Legal Entities (Registro Nacional de Pessoas Colectivas)
Opening a corporate bank account and depositing share capital
In order to take advantage of the privileges of the preferential tax regime, you must obtain an MIBC license. The application is made in Portuguese to the Cabinet of the Regional Secretary for Finance and Public Administration of the Regional Government of Madeira on behalf of the existing company or company to be registered.
Registration with the Portuguese tax and social security authorities
Company registration with a notary and local registrar
The main steps are described above, in addition, there are other requirements and procedures depending on the type of company, the number of founders, shareholders, etc.
We provide our clients with services for remote registration of a company in Madeira and opening a bank account!
Registration fees
Companies that register in Madeira are exempt from notary and registration fees.
Only the fee for obtaining an MIBC license of EUR 1,000 and an annual fee of EUR 1,800 are payable.
Tax regime in Madeira
Reduced corporate tax rate of 5% until 2027.
VAT is a standard rate of 22%, an intermediate rate of 12% and a reduced rate of 5%. 0% on dividends paid to non-residents of Portugal (legal entities or individuals), if they are not residents of the blacklisted jurisdiction;
Capital gains tax exemption on the sale of shares in a company in Madeira;
Real estate transfer tax (IMT) and municipal property tax (IMI) exemption for properties used exclusively for the company’s business.
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 taxes.
Conditions for using the preferential IBC tax regime and applying the income tax rate of 5%:
To be eligible for these benefits, licensed companies must meet one of the following requirements:
creation of 1 to 5 jobs during the first 6 months and a minimum investment of 75,000.00 euros in fixed assets during the first 2 years of the company’s operations; or
creation of 6 or more jobs in the first six months.
The company’s profits must not have their source in Portugal, unless the business relationship is established with another Portuguese company licensed by the MIBC.
In case of profit from activities with companies resident in Portugal, the company will be taxed at the general corporate tax rate in Madeira – 14.7%.
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FAQ
✓ Can a non-resident open a company in Madeira?
Yes, both an EU resident and any other foreigner can register a company in Madeira.
✓ How to open a company in Madeira?
To open your business on the island of Madeira, you need to go through several main stages: choose the type of company, register the name of the company in the national register, certify the statutory documents, open a Portuguese corporate bank account and deposit the authorized capital, obtain a special MIBC license, register the company in the national register and tax authorities.
Yes, personal presence is not required to register a company. We provide services for the remote registration of a company in Madeira by power of attorney to a Portuguese accredited lawyer.
✓ How to open a bank account in Madeira?
In order to open a bank account in Madeira, you need to collect a package of documents, translate and certify them, fill out bank forms, as well as go through a bank check, and, if necessary, an interview with a bank representative.
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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