COREDO > Company Formation in Portugal

Company Formation in Portugal

Why Register a Company in Portugal

Portugal is an attractive EU jurisdiction with access to the single European market, a stable economy, and a favourable environment for international business.

The country offers foreign investors a competitive tax system, the possibility of 100% foreign ownership, and a developed digital infrastructure. Portugal actively attracts international projects in IT, tourism, renewable energy, and innovation.

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Cost of the service
from 4 500 EUR

Types of Companies in Portugal

Foreign entrepreneurs can choose from the following legal forms for business registration in Portugal.

Sociedade por Quotas (Lda.)

Limited liability company. The most common form for small and medium-sized businesses. The minimum share capital is EUR 1 per quota holder (since the 2011 reform). The company can be established by one or more founders. Management is carried out by one or more managers (gerentes). Capital must be deposited into the company’s bank account within 5 business days of registration.

Sociedade Anónima (S.A.)

Joint-stock company. Suitable for large businesses and companies planning to attract significant investment. The minimum share capital is EUR 50,000, of which at least 30% must be paid at registration. A minimum of five shareholders is required for incorporation (or one, if it is a public company or holding). Management is carried out by a board of directors.

Sociedade Unipessoal por Quotas (Unipessoal Lda.)

Single-member limited liability company. The optimal option for individual entrepreneurs. Minimum capital is EUR 1. A single person can serve as both founder and manager.

Branch of a foreign company (Sucursal)

A foreign company may open a branch in Portugal without establishing a separate legal entity. The branch operates on behalf of the parent company and does not require a minimum share capital.

Registration Procedure

Registration of legal entities in Portugal is carried out through the Instituto dos Registos e do Notariado (IRN) — the Institute of Registries and Notaries. Portugal offers several convenient registration methods.

Empresa na Hora (on-the-spot registration).

The fastest method — the company is established in less than 60 minutes at IRN offices. The state fee is EUR 360. Available for Lda. and Unipessoal Lda. forms. During the process, a NIF (tax identification number), certificate of registration, and articles of incorporation are issued.

Empresa Online (online registration).

Registration through the government portal ePortugal.gov.pt using an electronic signature (Cartão de Cidadão). Processing time is 5 to 10 business days depending on the type of articles of incorporation. The cost is EUR 220 when using a standard template charter.

Traditional registration through a notary.

Preparation of incorporation documents by a notary followed by submission to the commercial registry. Timeframe: 2 to 4 weeks.

Required Documents

To register a company in Portugal, the following documents are required:

articles of association (pacto social) and company charter specifying the company name, registered office, share capital, business activities, and founder details;

identity documents of founders and directors (passports);

a tax identification number (NIF) for each founder;

proof of a registered office in Portugal (lease agreement or property certificate);

confirmation of share capital deposit into a bank account.

Foreign documents must be translated into Portuguese and apostilled or legalised.

Registration Timelines

Timelines depend on the chosen method: via Empresa na Hora — less than 1 hour; via Empresa Online — 5 to 10 business days; through a notary — 2 to 4 weeks. After registration, the company is required to register with the tax authority (Autoridade Tributária e Aduaneira) and the social security system (Segurança Social). COREDO provides full support at every stage, minimising timelines and eliminating errors in documentation.

Post-Registration Obligations

After registration, the company must register with the tax authority (Autoridade Tributária e Aduaneira) and the social security system (Segurança Social) within established deadlines. The company must appoint a certified accountant (Contabilista Certificado) who is responsible for maintaining accounting records and preparing tax reports. Annual financial statements are submitted through the IES (Informação Empresarial Simplificada) system by 15 July each year. Companies with annual turnover exceeding certain thresholds are subject to a mandatory audit.

COREDO Service Pricing

Service	Price
Company registration in Madeira (classic package)	from EUR 4,500 + VAT
Company registration with IBCM status (Madeira)	from EUR 6,100 + VAT
Virtual office	from EUR 120/month

COREDO specialises in company registration in the Madeira Free Trade Zone (Zona Franca da Madeira), which offers a preferential corporate tax rate of 5% for companies with IBCM status. The classic package is suited for companies without tax incentives, while IBCM is for those planning to conduct international activities with tax optimisation. For a personalised quote, please contact our specialists.

Tax System in Portugal

Portugal offers a competitive tax system with a consistent reduction in rates. The standard corporate income tax rate (IRC) in 2025 is 20%, with planned reductions to 19% (2026), 18% (2027), and 17% (2028). For small and medium enterprises (SMEs), a preferential rate of 16% applies to the first EUR 50,000 of taxable income.

In addition to the main IRC, companies pay a municipal tax (Derrama Municipal) of up to 1.5% of taxable profit depending on the municipality of registration. For companies with annual profits exceeding EUR 1.5 million, a state surcharge (Derrama Estadual) applies: 3% on profits from EUR 1.5 million to EUR 7.5 million, 5% on profits from EUR 7.5 million to EUR 35 million, and 9% on profits exceeding EUR 35 million.

In the autonomous regions of Madeira and the Azores, the IRC rate is 13%, making these zones particularly attractive for business. The standard VAT (IVA) rate is 23%, with reduced rates of 13% and 6% for certain categories of goods and services. Portugal also has an extensive network of double taxation agreements with more than 80 countries, enabling the optimisation of the tax burden for international operations.

Our Experts

The COREDO team has been operating since 2016 and possesses deep expertise in company registration across dozens of European jurisdictions.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Part of the COREDO team since June 2017, responsible for legal support of corporate projects and company registration in various jurisdictions.

Basang Ungunov

Lawyer. Part of the COREDO team since June 2022, specialising in legal support for company registration and structuring.

Case Studies

A European IT company approached COREDO with a request to register a subsidiary in Portugal to expand its presence in the Iberian market. The client required the prompt establishment of an Lda. with two non-resident founders. COREDO specialists prepared a complete set of incorporation documents, arranged NIF acquisition for both founders through a fiscal representative, and completed the registration through the Empresa na Hora service. The company was registered within one business day, including the opening of a corporate bank account and registration with the social security system.

Frequently Asked Questions

Is it mandatory to be a resident of Portugal to register a company?

No, Portugal does not require residency from founders or directors. Foreign citizens, including those from outside the EU, can own 100% of shares in a Portuguese company. To register, a NIF (tax number) must be obtained, which can be done through a representative.

What is the minimum share capital for an Lda. in Portugal?

Since 2011, the minimum share capital for a Sociedade por Quotas (Lda.) is a symbolic EUR 1 per quota holder. However, in practice, it is recommended to invest sufficient capital to cover the company’s initial operating expenses.

How long does company registration take?

Using the Empresa na Hora service, a company can be registered in less than 60 minutes at an IRN office. Online registration via Empresa Online takes 5 to 10 business days. COREDO specialists will help you choose the optimal registration method.

What tax advantages does Portugal offer?

Portugal is consistently reducing its corporate tax rate: from 20% in 2025 to 17% by 2028. For SMEs, a preferential rate of 16% applies to the first EUR 50,000 of income. Companies in the Madeira and Azores free economic zones pay IRC at a rate of 13%.

Is it possible to open a branch of a foreign company?

Yes, any active foreign company can open a branch (Sucursal) in Portugal without establishing a separate legal entity and without minimum share capital requirements.

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COREDO specialists provide full support for the company registration process in Portugal — from selecting the optimal legal form and preparing documents to registration with tax authorities and the social security system. We have been operating since 2016 and help entrepreneurs from dozens of countries successfully build business structures in Europe.