Starting a Business in Portugal

Business Types in Portugal

Portugal offers several legal structures for starting a business. The right choice depends on the number of founders, the level of liability protection you need, and the scale of your planned activity.

Empresa em Nome Individual (Sole Proprietorship)

The simplest form — you operate as an individual with no separate legal entity. There is no minimum capital requirement, and setup is fast. However, you have unlimited personal liability, meaning your personal assets can be used to cover business debts.

Estabelecimento Individual de Responsabilidade Limitada (EIRL)

A sole proprietorship with limited liability. You must allocate a specific amount of capital to the business, and only that capital is at risk. This form is less common but provides better personal asset protection than a simple sole proprietorship.

Sociedade Unipessoal por Quotas (Unipessoal LDA)

A single-member limited liability company. This is a popular choice for solo entrepreneurs who want the liability protection of a company structure. The minimum share capital is very low — it can be as little as €1 in practice, though having adequate working capital is recommended. You are required to have a certified accountant.

Sociedade por Quotas (LDA)

The most common company type in Portugal, equivalent to a limited liability company. It requires two or more partners (sócios). Each partner's liability is limited to their share of the capital. An LDA must appoint a gerência (management) and is required to have a certified accountant (TOC).

Sociedade Anónima (SA)

A public limited company, suitable for larger businesses. It requires a minimum of five shareholders (or one, if that shareholder is itself a company) and a minimum share capital — check the current amount on the ePortugal portal. SAs have a board of directors and a fiscal board or statutory auditor. This structure is used by larger enterprises or businesses planning to raise investment.

Empresa na Hora (Same-Day Registration)

Empresa na Hora (“Company in an Hour”) is a streamlined service that allows you to register an LDA or SA company in a single visit to a designated registry office (Conservatória do Registo Comercial) or Loja de Cidadão.

How It Works

1. Go to a participating office — Find locations on the ePortugal website.
2. Choose a pre-approved company name — Select from the list of available names at the office, or request a name certificate in advance from the RNPC (Registo Nacional de Pessoas Coletivas).
3. Select pre-approved articles of association — Standard templates are available on the spot.
4. Present your documents — Bring identification, NIF, and proof of registered office address.
5. Pay the registration fee — Check the current fee schedule on ePortugal.
6. Receive your company details — You walk out with a registered company, including a NIPC (company tax number), and you are enrolled in the commercial registry.

The capital deposit can be made within a set number of business days after registration — confirm the current deadline when you register. If you need custom articles of association or a non-standard company name, the process takes longer and may require a notary.

Empresa Online

You can also register a company entirely online through the ePortugal portal. This requires a Portuguese digital certificate (Chave Móvel Digital or Cartão de Cidadão with digital certificates activated). The process is similar to Empresa na Hora but is completed remotely.

Empresa Online is particularly useful if all founders already have Portuguese digital certificates and want to avoid an in-person visit. Processing times vary — check the portal for current estimates.

Required Documents

To register a company in Portugal, you typically need:

• Valid identification — Passport or Portuguese residence card for each founder
• NIF (Número de Identificação Fiscal) — Portuguese tax number for each founder. See our NIF Guide.
• Proof of registered office address — A rental contract, property deed, or virtual office agreement for the company’s official address in Portugal
• Share capital — The amount of initial capital to be deposited (can be as low as €1 per partner for an LDA, but adequate working capital is recommended)
• Company name — Either a pre-approved name (Empresa na Hora) or a name certificate (certificado de admissibilidade de firma) obtained from RNPC
• CAE code — The economic activity classification for your business

Registration Costs

Registration costs depend on the method you choose:

• Empresa na Hora — A fixed fee that covers the registration, publication in the commercial registry, and the NIPC. Check the current amount on ePortugal.
• Empresa Online — Generally a lower fee than in-person registration. Exact amounts are listed on the portal.
• Traditional registration (via notary) — Higher costs due to notary fees, publication costs, and potentially a name certificate fee.

Additional costs to budget for include a certified accountant (TOC) retainer, company seal (if desired), and initial legal or consulting fees. The certified accountant is a mandatory ongoing cost for LDA and SA companies.

Choosing a CAE Code

Every business activity in Portugal must be classified with a CAE (Classificação Portuguesa de Atividades Económicas) code. You select one or more CAE codes when registering your company.

• The primary CAE defines your main business activity.
• You can add secondary CAE codes for additional activities.
• The CAE code affects your licensing requirements, tax obligations, and which regulatory bodies oversee your activity.

Search for the appropriate code on the INE (Instituto Nacional de Estatística) website or ask your accountant for guidance. Choosing the wrong code can create issues with licensing and tax compliance, so take the time to select correctly.

Opening a Business Bank Account

Once your company is registered, you need a business bank account (conta empresarial) to deposit the share capital and manage company finances. Personal and company finances must be kept separate.

What You Need

• Company registration certificate (certidão permanente do registo comercial)
• Company NIPC (tax number)
• Articles of association (pacto social)
• Identification and NIF of all partners and managers
• Proof of the company’s registered address

Most Portuguese banks offer business accounts, including Millennium bcp, Caixa Geral de Depósitos, Novo Banco, and BPI. Some digital banks also offer business accounts with potentially lower fees. Compare account fees, online banking features, and customer service quality before choosing. See our bank account guide for more on banking in Portugal.

Hiring Employees

If your business grows and you need to hire staff, Portuguese labour law applies. Key obligations include:

• Written employment contract — Required for fixed-term contracts and strongly recommended for all types. It must specify job description, working hours, salary, and contract type.
• Social security registration — Register each employee with Segurança Social before they start work. Both the employer and employee pay contributions.
• Work insurance — Employers must take out occupational accident insurance (seguro de acidentes de trabalho) for all employees.
• Minimum wage and 14 payments — Employees receive 14 salary payments per year (12 monthly plus holiday and Christmas subsidies). The minimum wage is updated annually — check the current amount on ePortugal.
• Working time — The legal maximum is 40 hours per week and 8 hours per day. Overtime has mandatory additional compensation.
• Paid leave — Employees are entitled to a minimum of 22 working days of paid annual leave plus public holidays.

Business Taxes (IRC, IVA)

Companies in Portugal have several tax obligations:

IRC — Corporate Income Tax

IRC (Imposto sobre o Rendimento das Pessoas Coletivas) is levied on company profits. The standard IRC rate and any applicable municipal surcharges are set by the government and can change — check the current rates on the Portal das Finanças. Small and medium enterprises may benefit from a reduced rate on a portion of their taxable income.

IVA — Value Added Tax (VAT)

IVA (Imposto sobre o Valor Acrescentado) is the Portuguese VAT. Companies must charge IVA on goods and services sold, collect it from customers, and remit it to the tax authority. Portugal has multiple IVA rates:

• Standard rate — Applies to most goods and services
• Intermediate rate — Applies to certain food, beverages, and services
• Reduced rate — Applies to essential goods such as basic food items, books, and some medical products

The specific rates vary by region (mainland, Azores, Madeira). Check the Portal das Finanças for current rates. Companies must file periodic IVA returns (monthly or quarterly depending on turnover).

Other Taxes and Contributions

• Derrama Municipal — A municipal surcharge on company profits, set by each municipality
• Social security — Employer contributions for each employee, in addition to employee contributions
• Withholding taxes — On employee salaries, dividends, and payments to non-residents

Legal Obligations

Running a company in Portugal comes with ongoing legal requirements:

• Certified accountant (TOC) — LDA and SA companies must appoint a Técnico Oficial de Contas who handles bookkeeping, tax filings, and financial reporting. This is a legal requirement, not optional.
• Annual accounts — Companies must prepare annual financial statements, have them approved by partners/shareholders, and file them with the commercial registry.
• Tax filings — Annual IRC return, periodic IVA returns, IES (Informação Empresarial Simplificada), and other declarations as required.
• Social security reporting — Monthly declarations of employee remuneration to Segurança Social.
• Certified invoicing software — Companies must use invoicing software certified by the tax authority (Autoridade Tributária). Manual invoice books are only permitted in limited circumstances.
• Licenciamento (licensing) — Depending on your activity, you may need specific licenses or permits from the local câmara municipal or sector regulators.

Startup Visa

The Startup Visa is a Portuguese residence visa designed for non-EU entrepreneurs who want to develop an innovative business in Portugal. Key points:

• Eligibility — You must be a non-EU citizen with a viable business idea in innovation, technology, or a knowledge-intensive field.
• Incubator requirement — Your project must be accepted by a certified incubator in Portugal. The list of certified incubators is maintained by IAPMEI.
• Duration — The visa is initially valid for one year and can be converted into a residence permit.
• Financial means — You must demonstrate sufficient financial resources to support yourself during your stay. Check the current requirements on the IAPMEI Startup Visa page.

The application is submitted online through IAPMEI. After your project is evaluated and accepted by an incubator, you apply for the visa at the Portuguese consulate in your country of residence.

Incubators & Support Programs

Portugal has a growing startup ecosystem with several resources for entrepreneurs:

• IAPMEI — The government agency for SME support. Offers programs, funding information, and the Startup Visa program. Visit iapmei.pt.
• Startup Portugal — A public initiative that supports the Portuguese startup ecosystem through programs, events, and resources.
• Incubators and accelerators — Portugal has numerous incubators in cities like Lisbon, Porto, Braga, and Coimbra. These offer workspace, mentoring, networking, and sometimes funding. Some are sector-specific (tech, social impact, biotech).
• Portugal 2030 / EU funds — EU-funded programs available to businesses in Portugal, including grants, subsidized loans, and training support. Applications are managed through various intermediary bodies — your accountant or a consultant can help identify relevant programs.
• Free zones (Madeira, Azores) — Some economic incentives may be available for businesses established in certain regions. Conditions and benefits change — consult IAPMEI or a tax advisor.

Common Questions

Can a foreigner open a company in Portugal?

Yes. Any person, regardless of nationality, can register a company in Portugal. You need a Portuguese NIF (tax number) and, for non-EU citizens, a valid residence permit or visa that allows business activity. EU/EEA citizens can register freely. See our NIF Guide for details on obtaining a tax number.

What is Empresa na Hora and how long does registration take?

Empresa na Hora is a streamlined company registration service at designated registry offices. You can walk in, choose a pre-approved name and articles of association, pay the fee, and leave with a registered company — often in under an hour. It is available for LDA and SA companies. Find participating offices on ePortugal.

Do I need a certified accountant (TOC) for my company?

Yes, for LDA and SA companies, a certified accountant (Técnico Oficial de Contas) is legally required. They handle your bookkeeping, tax filings, and annual accounts. Sole proprietors below certain revenue thresholds may not be legally required to have one, but it is still strongly recommended.

What taxes does a company pay in Portugal?

Companies pay IRC (corporate income tax) on profits and collect IVA (VAT) on sales of goods and services. There are also municipal surcharges, social security contributions for employees, and withholding obligations. Current rates are published on the Portal das Finanças.

What is the Startup Visa and who is it for?

The Startup Visa is a residence visa for non-EU entrepreneurs who want to launch an innovative startup in Portugal. You must be accepted by a certified incubator. The visa is initially valid for one year and can be renewed. Details and certified incubators are listed on the IAPMEI website.