Opening A Business In Portugal

• Law Firm: L&E Global
• Subject Matter: Corporate/Commercial Law, Employment and HR, Tax, Corporate and Company Law, Directors and Officers, Contract of Employment, Health & Safety, Tax Authorities, Shareholders
• Author: Morais Leit'o and Helena Tapp Barroso (Morais Leit'o)
• Published date: 26 June 2023

1. INTRODUCTION

Portugal is still perceived as a frustrating country to start a business. The bureaucracy associated together with some difficulty in accessing complete and credible information contribute to this generalised idea. Nevertheless, Portugal has never been so attractive for foreign investment as now and the last few years have witnessed the implementation of a number of measures that have reduced bureaucracy towards citizens and corporations. In Portugal, the process of opening up a shop has been made significantly easier through simplified incorporation requirements available in the 'on-the spot firm' ("Empresa na Hora") incorporation procedure. This procedure enables setting-up companies in an hour at a single contact point in one of the desks available throughout the country, regardless of the specific location of the company's registered office in Portugal. An alternative swift incorporation procedure is offered through the 'online company' ("Empresa on-line") which enables the company set-up procedure to be completed online in a day or two.

Morais Leit'o, Galv'o Teles, Soares da Silva & Associados - Sociedade de Advogados, SP, RL. (Morais Leit'o) is a full service law firm with long experience of leadership in the Portuguese market. Internationally renowned, it has earned a reputation for excellence among peers and clients in relation to the high level of services provided to clients, solid ethical values and a distinctive approach with cutting edge solutions, translated into successive and consistent recognition in awards given to the firm and its individual lawyers. Both in a consultancy capacity and in litigation before labour courts, Morais Leit'o provides daily assistance to a vast number of companies, from multinationals to start-ups. Through the network Morais Leit'o Legal Circle, Morais Leit'o presents a team of more than 250 lawyers, with office in Portugal (Lisbon, Porto and Funchal), Angola, Cape Verde and Mozambique.

2. LABOUR AND EMPLOYMENT LAW REQUIREMENTS

A) Employer Policy Requirements

In order to be legally compliant, employers are required to create and implement an anti-harassment policy (whenever the company has at least seven employees). A whistleblowing policy and reporting line and anti-corruption policies must also be adopted in companies with 50 or more employees.

Employers may put in place other policies to rule work conditions, benefits and other employment relevant issues, assuming they do not contravene Portuguese mandatory employment rules.

B) Employee Training Requirements

Under Portuguese law, employees must be provided a minimum of 40 hours a year of continuous professional training or, to a pro-rated number of professional training hours (in temporary contracts with a duration of three months or more), which content is determined by agreement between employee and employer or, failing this, by the employer, in which case professional training must be related to or aligned...