Incorporating a Business in Portugal: Your Comprehensive Guide

Portugal is a top choice for entrepreneurs looking to start a business in Europe. Whether you’re a solo entrepreneur or part of a large enterprise, incorporating in Portugal can be simple if you choose the right method. There are three main options available for incorporating a business:

1. On-the-Spot Incorporation (“Empresa na Hora”)
2. Online Setup Procedure
3. Traditional Incorporation

Let’s explore these options in detail.

Option 1: On-the-Spot Incorporation (“Empresa na Hora”)

If you need your company set up quickly, “Empresa na Hora” is the fastest way to incorporate. You can establish your business in a single day at a designated office.

Steps to Follow:

• Choose a Pre-Approved Name:
  Pick a name from the government’s pre-approved list or propose your own. Using the pre-approved list ensures faster processing.
• Visit a Commercial Registry Office:
  Go to the nearest Loja do Cidadão or designated registry office. Bring all shareholders or appoint a legal representative with a notarized power of attorney.
• Provide Required Documents:
  Shareholders and directors must present identification (passport or Portuguese ID) and their Portuguese Tax Identification Numbers (NIFs).
• Sign the Articles of Association:
  Finalize incorporation by signing the required documents.

Advantages:

• Speed: Your business can be operational the same day.
• Ease: The process is straightforward with pre-validated steps.

Considerations:

• Pre-approved names limit branding choices.
• Industry-specific permits may require additional steps.

Option 2: Online Setup Procedure

The online method offers convenience and flexibility. It’s ideal for those who want to incorporate from anywhere in the world.

Steps to Follow:

1. Create an Account on the Portal da Empresa:
   Use your Digital Mobile Key (Chave Móvel Digital) or an EU-compatible ID to log in.
2. Reserve Your Company Name:
   Submit up to three name options or choose a pre-approved name for faster approval.
3. Fill Out the Online Forms:
   Provide details about your business, such as shareholder names, company structure, and business activities.
4. Upload Necessary Documents:
   Include digital copies of ID documents, NIFs, and the declaration of beneficial ownership.
5. Wait for Approval:
   The government usually processes online applications within 2-5 business days.

Advantages:

• Convenience: No need to visit a registry office.
• Digital Records: All documents are stored securely online.

Considerations:

• Requires proficiency in Portuguese or assistance from a professional.
• Processing times may vary.

Option 3: Traditional Incorporation

The traditional method offers complete flexibility. It’s perfect for businesses with unique needs, like customized Articles of Association or specific naming requirements.

Steps to Follow:

1. Hire a Legal Advisor or Notary:
   A professional can help draft the incorporation documents tailored to your business.
2. Reserve a Unique Company Name:
   Apply for a Certificate of Admissibility through the National Registry of Collective Entities (RNPC). This step ensures your business name is unique and legally valid.
3. Submit Incorporation Documents:
   File all required paperwork, including shareholder information, approved name certificate, and Articles of Association.
4. Open a Corporate Bank Account:
   Deposit the required share capital. The amount depends on your company type.
5. Register Business Activity:
   A certified accountant must submit a declaration to the Portuguese Tax Authority to officially activate your company.

Advantages:

• Fully customizable incorporation process.
• Best for businesses with complex needs.

Considerations:

• Longer processing time (1-3 weeks).
• Higher costs due to legal and professional fees.

What Comes Next? Essential Steps After Incorporation

No matter which method you choose, you must complete these steps to stay compliant:

1. Register for Social Security

Register your company and employees with the Portuguese Social Security Institute to meet labor law requirements.

2. Obtain Necessary Licenses

Apply for any industry-specific licenses or permits your business needs.

3. Declare Beneficial Ownership

Provide information about the individuals who control the company to comply with Law No. 89/2017.

4. Maintain Compliance

Work with an accountant to handle tax filings, annual reports, and legal obligations.

Why Incorporate in Portugal?

Portugal is an excellent place to start a business, thanks to its welcoming policies, strategic location, and skilled workforce. Whether you’re opening a local shop or launching an international company, Portugal provides a stable environment for growth.

Need help navigating the incorporation process? Move to Portugal Now is here to assist with every step. From choosing the right option to filing your paperwork, we make it easy for you to start your business journey in Portugal.