Guide to Company Incorporation in Portugal

1. What is the minimum share capital of a Portuguese LDA (Private Limited Liability Company)?
In Portugal the Limited Liability Company is one of the most common forms of business as the process of incorporation is not very complex, and the necessary capital is lower, 5.000EUR.

2. What is the minimum share capital for a Portuguese Public SA (Public Company)?
The Portuguese SA is a business form designated for larger businesses, has a more complex structure and a minimum capital requirement of 50.000 EUR.

3. Are there any special requirements for establishing a Portuguese Limited Liability Company?
In Portugal the Limited Liability Company must be created by at least two founders and the shareholders are supposed two provide shares of 100EUR minimum value per share. The company must have at least one director and the designated managers are empowered to deal with daily matters of the company. A chartered accountant must be appointed auditor for the company, where appropriate. There is no requirement as to the nationality of the directors; however certain documentation has to be provided if the founders of the company are not residents of EU and EEA, making the incorporation process more complex. A Limited Liability Company set up in Portugal has to have a registered address in the country. The company can be established without the presence of the founders, by appointment of a representative authorised with power of attorney to carry out the incorporation procedures.

4. How can I register for VAT in Portugal?
If the company is subject to VAT tax, the founders, or the legal representative must make sure to inform the tax authorities of the newly incorporated company. The application for registration contains the company's articles of association, registration certificate, names and addresses of the shareholders and directors and the power of attorney for the legal representative empowered to fill and submit the application. Companies receive the VAT number immediately which is transferred to the European VIES register when the company engages in trading.

5. How can I open a bank account in Portugal?
In order to make the deposit of the initial capital, the company must have a bank account. Usually the legal representative can take care of the process, after the company founders decide upon the bank to use. After the company is incorporated and receives the registration certificate, the founders can proceed to unblock the bank account. Specimen signatures and registration certificate of the company are required in order to open the bank account, and also the power of attorney for the representative. The company's account can be managed online, as many banks in Portugal offer the service of internet banking.

6. How can I recruit personnel in Portugal?
Portugal offers a skilled and productive workforce and unemployment is rather low. There is no difficulty in finding the best suited candidates for a newly established company, as internet websites offer the possibility to create user accounts, post jobs and select personnel. Also recruitment agencies can be contacted in order to present the company with the best candidates in result of their criteria.

7. What is the average salary in Portugal?
Even though the state goes through difficult times, economically speaking, the average salary has not varied that much, reaching 1.600 EUR.

8. What is the overall economical situation in Portugal?
Portugal is a highly industrialized country basing its economy on agriculture, trade and tourism. Portugal is the number one producer in Europe of cork oak and plays an important role in olive oil production. Even though in the past two years Portugal suffered a drop in its economy, the government has introduced measures to stimulate the states economy, measures that include encouraging foreign investment and offering incentives. Therefore the environment is friendly and non-discriminatorily for foreign entrepreneurs looking to invest here.

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