Company formation in Portugal

At a glance

Entity

Sociedade por Quotas (Lda) — private limited company; a sole owner uses the Unipessoal Lda variant

Corporate tax

19% on the mainland (2026, cut from 20% in 2025); SME reduced rate 15% on the first EUR 50,000. Madeira/Azores general rate 13%; the Madeira IBC free-zone regime gives 5% on qualifying income to 2033. Add a municipal surtax up to 1.5% and a state surtax of 3–9% on profits above EUR 1.5m. As of 2026.

Incorporation time

Same day (~1 hour) via Empresa na Hora with a pre-approved name; otherwise ~1–2 weeks through the online/traditional route, including NIF and banking steps

Minimum capital

Effectively none — EUR 1 per quota (EUR 1 for a single-member Unipessoal, EUR 2 for a two-member Lda); freely set in the articles

Resident director

Not required — no residency requirement for directors (gerentes) or shareholders

Audit

Exempt unless the company exceeds two of three thresholds — total assets EUR 1.5m, net turnover EUR 3m, 50 employees — for two consecutive years, when a ROC statutory auditor is required

Remote set-up

Mostly — every founder first needs a Portuguese NIF (non-EU/EEA persons appoint a resident tax representative); incorporation can then be handled by POA to a local representative, as the Empresa na Hora counter step is otherwise in person

Government fee

EUR 360 registry fee (Empresa na Hora, same-day, pre-approved name); the traditional route adds a EUR 75 name-approval certificate. As of 2026.

Best for

This suits an EU operating or holding company seeking access to EU directives, including the parent-subsidiary directive and the participation exemption, along with a wide treaty network. The Madeira IBC offers a 5% rate on qualifying international activity.

The process

1. Obtain a Portuguese tax number (NIF) for each foreign shareholder and director; non-EU/EEA persons appoint a resident tax representative
2. Reserve a company name (Certificado de Admissibilidade) or select a pre-approved name from the Empresa na Hora list
3. Incorporate: sign the articles and register with the Commercial Registry — same day at an Empresa na Hora counter, online, or by POA
4. Subscribe the share capital (it may be deposited within the first financial year rather than up front)
5. File the commencement-of-activity declaration with the tax authority (AT) and register for VAT
6. File the beneficial-owner declaration (RCBE) within 30 days and open a corporate bank account