Portugal is a country situated in Iberian Peninsula, on the coast of Atlantic Ocean. Portugal is one of the oldest nations in Europe, providing various possibilities for expansion and establishment of international businesses.

The country is famous for its flexibility on company incorporation, progressive tax rates and benefits of Double taxation treaties with other countries for tax management options.

Portugal is one of EU’s most economically developed countries, focusing on long-term business establishment and attraction of investors to Portugal.

Description of Limited Liability Company in Portugal

• Liability limited only to shares;
• Unlimited business activities;
• 2 board members are required
• No minimum share capital required (but preferred);
• There is no need to be in the country during or after the process of company formation;
• Foreigners can establish a company in Portugal;
• Possibility to apply for EU residence permit in Portugal;
• Tax reduction possibilities;
• Perfect for small and medium-sized businesses;
• Simple administration and tax filing;
• Non-habitual residency regime;
• No tax on cryptocurrency.

• Tax Rules in Portugal:

Portugal’s tax system is progressive and advanced. Resident companies pay taxes on international income but benefit from various tax advantages, including reduced rates through local regimes and Double Taxation Treaties. Profits and losses allocated to a foreign PE of a Portuguese firm can be exempt from taxation under an optional scheme.

• Economy and Business Landscape:

Portugal, as the EU’s oldest nation, maintains a stable economy and a serene environment, ensuring a high standard of living. The country provides diverse business opportunities across import/export, retail, real estate (with Golden Visa programs), financial services, agriculture, manufacturing, and production. Portugal’s focus on attracting foreign investment drives GDP growth and sectoral prosperity.

• Freelance Opportunities:

In 2021, Portugal became a top destination in the EU for freelancers to remotely operate along the Atlantic coast. The country not only prioritizes foreign investment but also offers significant opportunities for freelance workers.

DOCUMENTS REQUIRED FOR COMPANY INCORPORATION IN PORTUGAL

For individuals:

• Passport copy of all shareholders;
• Passport copy of all directors;
• Copy of a recent utility bill not older than three (3) months.

If shareholder is a legal person:

• Copy of Certificate of Incorporation or other similar document, evidencing the entity’s existence;
• Copy of the Register of Directors;
• Copy of the Register of Shareholders;
• Copy of valid passport of the Directors;
• Articles of association;
• Copy of a recent utility bill issued no more than three (3) months ago of the Directors;

For each beneficial owner (owns at least 25% or more shares):

• Copy of valid passport;
• Copy of a recent utility bill issued no more than three (3) months ago.