Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Portugal
Located in the western part of the Iberian Peninsula, Portugal is a gateway to more than 250 million people worldwide. Portugal is ranked 25th in the world for the ease of doing business by the World Bank.
The great thing about the business markets in local Portugal is the wide use of English, which is spoken and accepted as a business language in the country. Even more good news for investors is that Portugal has one of the lowest operational costs compared to other places in western Europe.
Portugal has competitively priced locations and facilities which are readily available to investors.
Types of business entities in Portugal
Investors who want to register a business in Portugal have the option of choosing from the following business entities:
- A private limited company
- A public company
- A limited partnership company
- A general partnership company
For a new company to be successfully incorporated in Portugal, the name of the newly formed business must be checked at the National Registry of Collective Entities, and this is a mandatory step that needs to be taken.
Registering a company in Portugal
The information below takes a look at the summary of registering a business in Portugal and the steps that investors need to take before they can establish a business in this region:
- There are one of two ways to register a company in Portugal – through an On the Spot Firm or an Online Company Setting Up. Currently the On the Spot Firm is the most common way to get a business registered, and this service will enable investors to set up a company in less than an hour at a single contact point which is very convenient. The Online Company Setting Up way involves establishing a company through the Internet which takes about 1 to 2 days to complete. Access to this form of registration can be done via the Business Portal.
- Opening a bank account and obtaining a BIN or Bank Identification Number is the next step in the company formation process. The Tax Authorities Offices require that the declaration of commencement of activity be submitted to the office, together with evidence that the company has been incorporated.
- Companies are also required to register for VAT if the sales of the company exceed the turnover threshold of EUR10,000.
- Businesses are then required to register with the Social Security Regional Centre. Every employer running a business in Portugal is required to communicate the admission of its employees to the Portuguese Social Security Services.
- Businesses are also required to register for the workman’s accident compensation insurance at a private insurer. What is the worker’s compensation insurance? It is an insurance scheme that covers all workers and managers who are receiving a salary. The insurance is underwritten by a private insurer carrier and this measure can also be done when a company has already commenced its business activities.
For more information on registering a company in Portugal, contact 3E Accounting at our website for the list of services that our on-hand professionals are ready to assist with.