Types of Portuguese companies

There are many company types that are available in the legal system of Portugal. The most common ones are the public company and the private limited company.

Forming a Public Company (Sociedade Anónima SA) in Portugal
This company type is designated for a medium to large business having a minimum required capital of EUR 50.000. It can be formed by at least five shareholders who can be individuals or legal entities. The liability of the members in a public company is limited to the contribution made by each one. This kind of company must be registered at the Trade Register in order to function legally.

Forming a Private Limited Company (Sociedade por Quotas - LDA) in Portugal
This company type is the most popular for small and medium companies. For the formation of a private limited company at least two members are required. They must provide at least EUR 5.000 in order to apply for registration. The partners of a private limited company are liable to the company's debts and obligations only to the extent of their own contribution.

Forming a Limited Partnership (Sociedade em Comandita - SC) in Portugal
The limited partnership in Portugal is a typical partnership formed by at least two persons. At least one member of the partnership is general (Socios Comanditarias) and bears full liability for the company's debts and obligations, having the right to interfere in the management of the company and at least one member is a limited partner (Socios Comanditados) and holds limited liability to the extent of his contribution. The limited partnership des not require a minimum capital.

Forming a General Partnership (Sociedade em Nome Collectivo - SNC) in Portugal
A general partnership is created by at least two members who do not have to provide a minimum capital. All the members of this kind of partnership are general and bear full responsibility for the partnership's debts and obligations, also having the right to manage the company and invest the profit and to remediate the losses.

Forming a company with a single shareholder (EIRL) in Portugal
This type of company is formed by one founder who can open only one entity of this type. The single shareholder is liable with the assets of the company and not of his own personal property. This kind of company is rarely used, but has the advantage of being easy to incorporate.

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