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Starting a Business in Portugal: Easy Steps for Success
Portugal is a charming and beautiful country known for its rich history, stunning landscapes, and vibrant culture located in Southern Europe. It has become a popular destination for expatriates and retirees looking to enjoy a slower pace of life. Portugal’s strategic position, combined with a favorable business environment has put it on the global map as an attractive hub for startups and businesses.
Starting a business in Portugal can be an exciting venture, but it’s essential to navigate the process carefully to make sure you will succeed. From registering your company to understanding tax obligations and building a strong foundation. With the right guidance and preparation, you can navigate all the processes smoothly. In this article we will guide you through the business opportunities available in Portugal and all of the essential steps required for opening a company or starting a business in Portugal as well.
What are the steps to establish a company in Portugal?
Here are some steps which typically involved in establish a company in Portugal
1. Arrange the needed documents to Starting a business in Portugal
- NIF number for the shareholder and for the director
- Legal business address contract
- Social security number (NISS)
2. Choose a legal Structure that best fits your business needs
There are three popular business types
- Sole proprietorship
- Partnership (Empresário em Nome Individual)
- Limited liability Company (LLC)
3. Reserve a Company Name with the Portuguese authorities
- The easiest and the free option is to choose a name from the list of pre-approved names.
- Another option is to set a name as a client’s name, for example, Your Name DQS.
- If you want to choose a name that is not on the list, it will cost 300 EUR. You have to prepare a list of at least 10 options of names due to a low chance of approval.
- If you have a trademark or a right to the desired name in another country, or even an existing company with the same name in another country, you need to prepare all proving documents, after that the request can be sent to justice for approval. The consideration usually takes up to 2 weeks.
4. Open a Business Bank Account to manage your company’s finances
- Business bank account can be obtained only if you already have a personal bank account.
- It should be done in advance because it requires time to make everything from the start.
- At the same time you have to be appointed to accounting, because only a legal accountant will be able to start the activity of your company.
Different Methods for Starting a Business in Portugal
Nowadays Portugal has become an attractive location for business development. Here are three different methods we will discuss about in following section:
1. Online business formation (empresa online)
If you want to create an online business, this process can be completed within a few days in Portugal at a cost around €360.
This is an ideal method for entrepreneurs with digital or remote business models, such as e-commerce or digital consulting. It provides the convenience of initiating the business from anywhere remotely.
2. Instant business setup (empresa na hora)
“Empresa na Hora” is a service provided by the Portuguese government. It aims to simplify the company registration process, reduce bureaucracy, and encourage entrepreneurship for starting a business in Portugal. It offers a convenient and efficient way to start businesses without the need for lengthy administrative procedures. It’s important to note that while “Empresa na Hora” provides a quick and straightforward process for company registration, you should make sure that you comply with all legal requirements and regulations related to their business activities.
3. Traditional business creation (criação de uma empresa)
People usually call this method the traditional way of business creation. This method involves several steps. First Thing first you have to do is apply for a company card and obtain a Certificate of Admissibility.
Secondly, you have to open a business bank account and deposit the initial capital. This is followed by declaring your business activity at the local tax office.
After that, you’ll need to register your Portuguese business at a Commercial Registry Office (Registo Comercial) and register as an employer at your local Social Security office.
Register your business address because it’s required to register a legal address in this country. You can find a way to do it by yourself, or contact any service provider. Keep in mind that starting a business in Portugal without official residency status is prohibited. Once you have completed these steps, the process will usually take at most 15 days. Now you can start your business operations in Portugal.
Why choose Portugal for business?
Choosing Portugal for business offers so many advantages that make it an attractive destination for entrepreneurs and investors. Here are some reasons why Portugal is a best choice:
Strategic Location: Portugal’s strategic location is convenient access to the Schengen Area and the European market makes it an ideal hub for international trade and investment.
Political Stability: Portugal is known for its stable political environment and commitment to democracy, providing a safe and secure environment ranking seventh in the 2023 Global Peace Index to set for business operations.
Skilled Workforce: Portugal has a very high quality education system and boasts a highly educated and skilled workforce with proficiency in multiple languages, including English.
Competitive Costs: Portugal offers competitive operating costs compared to other European countries, including lower labor costs, affordable office space, and a favorable tax regime.
Quality of Life: Portugal is known for its high quality of life, pleasant climate, beautiful landscapes, and a relaxed lifestyle. Cities like Lisbon and Porto offer a vibrant cultural scene, excellent healthcare facilities, and a safe environment for residents and expatriates.
When launching a business in Portugal, the process can be simplified by hiring qualified service providers. These professionals can provide comprehensive support and advice, helping you navigate through the complex business setup processes When launching a business in Portugal, the process can be simplified by hiring qualified service providers. These professionals can provide comprehensive support and advice, helping you navigate through the complex business setup processes.
