The Incorporation Process And Making Sure You Choose The Right Type Of Portuguese Company Structure

• Published date: 20 July 2023
• Subject Matter: Corporate/Commercial Law, Tax, Corporate and Company Law, Contracts and Commercial Law, Tax Authorities, Shareholders
• Law Firm: Dixcart Group Limited
• Author: Mr Lionel de Freitas

Background

Portugal is a popular destination for foreign investors, thanks to its buoyant economy, favourable tax climate, and strategic location in Europe.

If you are considering incorporating a company in Portugal, there are a few things you should take into consideration. Please see our sister Article which details the three Portuguese company structures, for tax purposes, and the benefits that each offers: Three Types of Portuguese Company Advantages and Criteria.

In this article, we will discuss the steps involved in incorporating a Portuguese company, including:

• Choosing the right type of company structure
• Registering the company with the Portuguese Commercial Register
• Obtaining a Tax Identification Number (NIF)
• Opening a bank account
• Obtaining a business license

Choosing the Right Type of Company Structure

There are two main types of company that can be incorporated in Portugal: limited liability companies (Sociedades por Quotas 'LDAs') and joint stock companies (Sociedades Anónimas, 'SAs').

LDAs are the more common type of company in Portugal. They are relatively easy to set up and have a lower minimum share capital requirement than SAs.

SAs are more complex to set up and have a higher minimum share capital requirement.

However, they offer a number of advantages, such as limited liability for shareholders and the ability to raise more capital.

The table below summarises the key differences between SA and LDA companies in Portugal:

There are, a number of additional things to consider when choosing between an SA or an LDA:

• Future growth plans:if you plan to grow your business and raise capital from investors, an SA may be a better option. This is because SAs are more widely recognized and accepted by investors.
• Management structure:If you want to have more control over the management of your business, an LDA may be a better option. This is because LDAs are more flexible in terms of management structure.

If you are still unsure about which type of company is right for you, it is a good idea to consult with a lawyer or accountant who can help you assess your specific needs and circumstances such as Dixcart Portugal Lda.

The type of company that is right for you will depend on your individual circumstances and needs. If you are unsure which type of company to choose, you should consult with a professional...