Open Company Branch or Subsidiary in Portugal

While there are many countries in which an entrepreneur may invest, the state of Portugal offers one of the best conditions for companies to be successful. The stable economy as well as the qualified workforce offer great premises for investors wishing to start a business here. There are many possibilities to do that, including setting up a company branch of a foreign company. A Portuguese branch is not a separate legal entity from its parent company which is liable for all the debts and obligations of the branch.

Preliminary activities prior to registering a company branch in Portugal
Before registering a company branch in Portugal the company founders must first establish a name for the company which should not differ from the one of the foreign parent company or it must contain its name. The name should be registered with the National Registry of Collective Persons (RNPC), procedure completed by submitting a request application. The Portuguese branch must have a manager authorized through power of attorney, document that should be prepared before applying for registration. Also the drafts of the company's foundation documents must be prepared and notarized, a procedure that should not take more than one day.

Registering the Portuguese company branch with the Commercial Registry of Portugal
Every business entity that will engage in commercial activities should pursue registration with the Commercial Registry of Portugal. In order to do so, an application should be sent electronically, or in person at the one stop shop. The application should contain the parent company's incorporation document, issued by the relevant institution of the respective foreign country, a copy of the parent director's board minute attesting the opening of a branch in Portugal, the notarized articles of association of the company branch, the power of attorney ant the translated by-laws of the parent company. Usually the registration is completed immediately and the registration certificate is issued. In case additional information is requested, the registration process is completed upon admittance of all requested documents.

After registration the Portuguese company branch comes into existence, but before it can commence its activities there are some other steps that need to be completed. The founders must inform the tax office of the business start date through submission of the deliberation minutes of the parent company the national register documents, a copy of the application of the business registration and a declaration of commencement of activity. Also the Portuguese branch must be registered with the Social Security Services.

Setting up a Portuguese branch from abroad
The Portuguese government encourages foreign investment, offering great conditions for companies and branches. A branch in Portugal may be established through a representative authorized to do so by power of attorney, but a legal address for the new business entity must be provided.

How long does it take to set up a Portuguese company branch?
Setting up a company branch does not differ very much from incorporating a regular Portuguese company. The main difference consists in the additional documentation. However, preparing the documents should not take more than one day, the same as registering at the one stop shop of the Commercial Register. A Portuguese company branch is usually established in maximum one week.

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