Company Registration in Portugal 

• Our team will help you to select an appropriate business structure based on your goals, industry, and expansion plans.  

• Tetra Consultants will help you to secure a Portuguese identification number (NIF) for all the directors and shareholders. Apart from this, we also provide nominee director and shareholder services. NIF is significant for company formation and for setting up a corporate bank account.  

• Tetra Consultants will then verify the availability of your chosen company name, and our experts will reserve it with the Institute of Registries and Notary Affairs, while also ensuring that it complies with all the local naming conventions and regulations.  

• After reserving a company name, our team will then move on to preparing and reviewing all the necessary legal documents and submitting them to the Commercial Registry Office. The document includes: 
  • Proof of registered office address 
  • Power of attorney 
  • Director and shareholder identification 
  • Articles of association  

• Once all the conditions and capital requirements are fulfilled, we will register your company with the Portuguese Commercial Registry, which consists of: 
  • Getting a certificate of incorporation  
  • Commercial and central registry filing 
  • Tax and social security registration 

• Tetra Consultants will ensure that all the filings are done in adherence to the local and corporate tax laws.  

• Our team will register your business for VAT, and help you in getting industry-specific licenses, approvals, and permits in order to ensure that your business is up and running.  

• At Tetra Consultants, we provide corporate bank account opening service which is significant in company registration in Portugal. Our team will help you to open a corporate bank account in a reputable Portuguese or EU bank. After opening the bank account, you will have to deposit the initial share capital, which can be as low as €1 for a private limited company. Additionally, our team also provide regulatory compliance consulting to help your company adjust with the regulatory environment of Portugal ensuring that there is no delay in your daily operations. 

• After registering for VAT, our team will establish an accounting framework that aligns with Portuguese GAAP or IFRS. 

Compliance and taxation obligations

Corporate income tax (CIT) 

• The general CIT rate in Portugal is 20%. For small and medium enterprises, the 16% rate applies to the first €50,000 of the taxable income.  

• A tax identification number is needed for all legal acts, such as company registrations and opening a corporate bank account.  

Tax incentives 

• The Portuguese government has improved incentives for wage increases and company capitalization.  

Value added tax 

• The standard rate of value-added tax in Portugal is 23%, while the rate has been reduced to 13% and 6% for specific goods and services such as food, books, and medical supplies. In Portugal, VAT registration is compulsory for most businesses whose annual turnover is more than €12,500 or are working in specific sectors.  

Annual compliance and reporting  

• Financial statements– The financial statements should include a balance sheet, profit and loss statement, notes to accounts, and a director’s annual report. The financial year usually matches the calendar year, but it can differ if regularly applied for at least five years.  

• Audit requirements– Audit in Portugal is mandatory for public limited companies, holding companies, or if the companies meet at least two of: 
  • Balance sheet total is more €1,500,000 
  • Has more than 50 employees 
  • The annual turnover is more than €3,000,000 

• Filing deadlines– Timely submission of audited financial reports is needed in order to avoid any penalties and maintain the credibility of the business. Annual accounts should be filed with the Registrar of Commercial Companies and should be disclosed publicly through the Ministry of Justice.  

Other regulatory compliance  

• Employment law- The year 2025 has brought increased compliance obligations, especially in the areas of wage growth, sustainability, and equality. Organizations should align their policies with the new legislative developments.  

• Packaging and labelling- From January 1, 2025, companies in Portugal should offer waste disposal information either directly on packaging or through alternative channels.  

Residency and visa considerations 

• Foreign investors wanting to start a business in Portugal are eligible for: 

Portugal Golden Visa program  

• The Golden Visa is a viable option for starting a business in Portugal; however, real estate investment is no longer a qualifying route.  

• The minimum stay requirements for this visa are only seven days per year on average.  

• The visa also provides family inclusion for your spouse, children, and dependent parents.  

• The qualifying investments for this visa consist of €500,000 in the field of scientific research and approved investment funds, or €250,000 donation to the national cultural heritage projects.  

Business and investment research  

• Business owners can get Portuguese residency by registering a company and creating jobs for Portuguese citizens. At least 10 new jobs for Portuguese citizens should be created and registered with the social security and tax authorities.  

• Invest €350,000 in an existing company and create at least 5 permanent jobs for up to three years.  

• After five years of legal residence, entrepreneurs can apply for permanent residency.  

Portugal startup visa 

• This visa is for innovative business owners who are launching startups in partnership with a Portuguese incubator.  

• The requirements for this visa consist of: 
  • An innovative business plan 
  • Up to five business partners, and the main applicant should be a non-EU citizen.  
  • Confirm at least €10,440 in funds for one year of residency.  

• Family reunification in this visa is allowed.  

Documents required

• When registering a company in Portugal, you should prepare and submit several documents. Here is a list of documents that you need to submit: 

• Valid passport or national ID card of each shareholder and director  

• Portuguese Tax Identification Number for all the shareholders and directors 

• Certificate of company name approval  

• Deed of incorporation 

• Articles of association 

• Declaration of acceptance  

• Proof of share capital deposit  

• Proof of registered office address 

• Certificate of no criminal records for all shareholders and directors 

• Business plan  

• List of Ultimate Beneficial Owners 

• Power of attorney if the company registration is handled by a legal representative 

Costs and timelines  

• The overall costs of company registration in Portugal can differ based on legal structure, type of business activity, and whether you need additional services like registered office, licensing, and VAT registration. At Tetra Consultants, we offer transparency and all-inclusive pricing, and there are no hidden fees, to ensure that you know exactly what you are paying for at every stage. Our service packages are created to meet the specific needs of your business and consist of incorporation, legal documentation, tax registration, ongoing compliance support, and bank account opening. 

• The overall timeline for company registration in Portugal can differ because of factors such as the type of business entity, documentation readiness, and bank account processes. Usually, the entire process from initial incorporation to corporate bank account opening take multiple weeks to a few months. At Tetra Consultants it takes around 3 to 11 weeks to register company based on the chosen legal structure, and accuracy of submitted documents. Furthermore, corporate bank account opening usually takes 3 to 4 weeks, as banks also conduct due diligence and compliance checks. With Tetra Consultants managing the procedure, you can benefit from an effective streamlined approach that reduces delays and ensures timely completion of each and every step.  

Why proceed with Company registration in Portugal? 

• Registering a company in Portugal provides a combination of strategic, financial, as well as operational advantages that makes the country an attractive destination for investors and business owners: 

Access to European markets  

• Portugal offers direct entry to the single market of the European Union. This market has more than 460 million consumers, which allows for seamless trade and expansion within Europe.  

Streamlined registration process 

• The company formation process is straightforward, fast, and is usually completed digitally, due to programs such as Empress na Hora. This enables businesses to be operational in as little as two days.  

Low operating and living costs  

• Portugal is considered to be the most affordable countries to live and start business in Western Europe. This has made the country attractive in the eyes of startups and SMEs.  

Competitive and predictable tax environment 

• The corporate tax rate in Portugal is 20% with a reduced rate of 16% for the first €50,000 for small-scale businesses. Furthermore, there are also additional incentives in the free trade zones such as Madeira, Portugal also has double tax treaties with several countries, which helps to avoid double taxation.  

Common mistakes to avoid

Inadequate research  

• Selecting the wrong company type without understanding the implications for liability, taxation, and management will mainly lead to operational and compliance issues. You need to consult with legal or accounting professionals, which is highly needed. At Tetra Consultants, we have experts that have expertise in company incorporation and based on your needs will provide you with a right choice of the company type.  

Incomplete or incorrect documentation  

• If you submit incomplete, outdated, and incorrectly prepared documents, then it will lead to registration failure. You also need to ensure all required paperwork, like articles of association, director and shareholder details, proof of share capital deposit, as well as the registered office address. Our team will ensure that all the documents are updated and are in the right order in order to minimize delays.  

Insufficient capital deposit  

• If you are not depositing the minimum required share capital into a Portuguese bank account or fail to offer documentation for any non-cash contributions, this will invalidate the registration. At Tetra Consultants, our team will help you to determine the right capital amount to deposit.  

Failure to register for tax 

• Failing to register the company as a taxpayer as well as a social security contributor immediately after incorporation is a common error that leads to penalties. Our team of experts will ensure that all the regulatory compliance requirements are fulfilled and that includes registering your company for tax.   

Not obtaining a tax identification number 

• It is mandatory for shareholders and directors to get a Portuguese NIF before registration. Even non-EU nationals should appoint a tax representative, and missing this step can actually halt the process. At Tetra Consultants our team will help shareholders and directors secure a tax identification number to ensure that there are no delays in the incorporation process.  

Looking to register your company in Portugal? 

• The strategic geographical location, pro-business regulatory framework, and easy access to the European Union has made Portugal an ideal destination for global business owners. If you are an individual, investor, or a startup founder, registering a company in Portugal provides immense opportunities. However, the procedure is complex and daunting. This is where Tetra Consultants steps in, at Tetra Consultants we have more than 10 years of experience in offshore company incorporation. From initial planning to post-incorporation compliance, we handle the full scope of your business setup. Additionally, we also provide accounting, tax filing, and advisory services to keep your company compliant in the long-term.  

• Contact us, and our team will get back to you in 24 hours.  

FAQs