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

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 adviser.
At Dixcart Portugal, we have senior qualified accountants who will
be able to assist.

Registering the Company with the Portuguese Commercial
Register

Once you have chosen the type of company you want to
incorporate, the company needs to be registered with the Portuguese
Commercial Register (Registo Comercial). the proposed company name
and the names and addresses of the shareholders and directors will
need to be provided.

Obtaining a Tax Identification Number (NIF)

Once your company has been registered with the Portuguese
Commercial Register, a Tax Identification Number (NIF) from the
Portuguese tax authorities needs to be obtained for the company -
this is referred to as the NIF (Número de
Identificação Fiscal – Tax identification
number).

Opening a Bank Account

Once you have obtained a NIF, a bank account needs to be opened
for your company. A Portuguese bank and/or an international bank
may be chosen to open a corporate bank account. In some cases, this
may be performed remotely. It is suggested a Portuguese bank
account is opened in order to make payments to local authorities
and be able to receive refunds (if any are due) from the local tax
authorities.

Obtaining a Business License

Once the bank account is open, a business license from the local
council is required. The company’s; articles of association,
company’s certificate of incorporation, company’s NIF, and
bank account details, need to be submitted.

Choose to Incorporate the Right Type of Company Structure for
you

Incorporating a Portuguese company can be a complex process, but
it is essential if you want to do business in Portugal.

By engaging with professionals you can ensure that your company
is incorporated correctly and that you comply with all of the
applicable laws and regulations.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.