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Portugal Company Incorporation

Updated:2018-10-31 15:55:20    Source:www.tannet-group.comViews:45

Portugal company incorporation is a good springboard for investors to enter into the European market. Portugal is the westernmost country of mainland Europe. Portugal’s economy is mainly based on agriculture, tourism and trade. As a matter of fact, Portugal is an important partner in international trading. Besides, the country is well-known for its production of cork, oak and olive oil.

Before starting your business in Portugal, it is essential to create a business plan that will give you the best possible launch into the Portuguese market. Make sure you have a clear view of what it is you want to do, and how feasible that business idea is.

Advantages of Doing Business in Portugal
1. It is easy and cost-efficient to register a business in Portugal;
2. The World Bank ranks Portugal as the 5th best European country for ease of business incorporation;
3. Portuguese LLC incorporation takes no more than 1 week, the fastest pace in Europe.
4. Portugal has strategic relations with other countries through its EU membership and ties with other Portuguese speaking markets;
5. Operation costs in Portugal are one of the lowest in Western Europe;
6. Good physical and IT infrastructure;
7. The Portuguese government offers fiscal incentives to entrepreneurs registering a company in Portugal.

Types of Business Entities
Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Portugal are as mentioned below:

1. Private Limited Liability Company;
2. Public Limited Companies;
3. Limited Co-partnership Companies;
4. General Partnership Companies.

Time-frame for incorporating a company in Portugal varies from depending on the type of entity selected and each business type has its own advantages and disadvantages.

Features of a Private Limited Company
The Private Limited Company is the most popular format for small and medium businesses in Portugal, whose main features are as below:
1. The minimum share capital is €1;
2. The minimum number of directors is one;
3. There are no restrictions on foreign shareholders.

Corporation Tax
Corporation Tax in Portugal is on the high side at a rate of 25% plus 2.5% local tax, although this is an improvement as before 2005 the rate was 30% plus 3% local tax. Portugal can however, offer the Madeira Free Trade Zone which has a much lower rate of Corporation Tax, between 4% and 12.5% (4% until 2012 and 5% from 2013 till 2020).

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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