Portugal happens to be a very good country to live in as well as work. In fact, the country has a frugal cost of living, favourable weather conditions and a negligible crime rate. On top of these, it has a robust educational infrastructure and offers various tax exemptions to its residents as well. In 2020, Portugal was placed as the third most peaceful country in the world by Global Finance magazine. So, now, let us find out how one can set up a business in the country.
Legal Requirements to Set Up A Business In Portugal
Portuguese residency card
A Tax Number from the Portuguese Tax Office
A Social Security Number from the Portuguese Social Security
Primarily, you need to ensure that you have a good business plan in place prior to establishing a business in the country. There is absolutely no substitute for the same.
Select Business Name And Address
These are necessary and if you don’t have these two things then it is time to finalize both. Also, you should register them as these are important aspects of your setup process.
Methods Involved In Set Up
There are two ways to establish a business in Portugal:
Establish online (Empresa Online) – This method permits some types of Portuguese businesses to be instituted and registered online (internet) in 1-2 days for a cost of €360. However, an electronic certificate is an absolute must. The Portal de Empresa portal, an ideal platform to carry out this, can be found here.
Establishing on-the-spot (Empresa de Hora)– Over here, sole traders and limited companies are formed within an hour for €360 through this government scheme. Every partner has to be present in person apart from all required documentation and legal representatives. The procedure to set up a business with Empresa de Hora can be found here.
In case you are unable to start a business with these methods, then you can opt for the traditional method. These are the steps involved in the same:
First, get a Certificate of Admissibility to officially recognize your Portuguese company’s name. This can be acquired from the Institute of Registries and Notaries (IRN)
Then try to obtain a Company Card and a Collective Card (the main business ID) from the IRN
Open a business bank account and provide the initial capital
Announce the start of activity at the local Tax Office
Register your Portuguese business at a Commercial Registry Office
Register as an employer at the local Social Security office
Finally,
After finishing the aforementioned steps, which might consume roughly 15 days, you are free to begin your business operations in Portugal. However, you need to ensure that your area of business activity entails any other requirements, for example, a license or particular qualifications. Importantly, for some businesses, it is not permissible by law to launch operations devoid of official status in Portugal.
