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Starting a Company in Portugal

Researched and written with AI tools from official sources. How we make our guides

How to set up a limited company in Portugal: the legal forms, registering in one day at a desk or online, the fees, and the taxes that follow.

The Portugal Brief 10 min read

Starting a Company in Portugal

Last verified: October 2026.

Who this is for

  • You want to set up a limited company in Portugal, alone or with partners.
  • You live here or abroad, EU citizen or not, and have or can get a Portuguese NIF.
  • You work as a freelancer and are weighing whether to turn your work into a company.

Not for you if: you only want to invoice as a freelancer in your own name. Read Registering as Self-Employed (Recibos Verdes) in Portugal instead.

You can register a Portuguese limited company in a single day. At an Empresa na Hora desk it costs €360 and takes one visit with all partners present. Online it costs €220 with a standard set of company statutes, and every partner needs a Portuguese NIF and a digital signature. The minimum share is €1 per partner. The slow part usually comes after: opening the bank account, hiring an accountant, and setting up social security. No official timeline covers those steps, so allow a few weeks before you trade normally.

Most small businesses choose one of these:

  • Sole trader (empresário em nome individual). Not a company. You register at the tax office (Finanças) like a freelancer and pay income tax on the profit. There is no share capital, and your personal assets answer for business debts.
  • Single-member limited company (sociedade unipessoal por quotas, "Unipessoal Lda"). One owner. The company is a separate legal person, and your liability is limited to its capital. The minimum share is €1. One individual can own only one company of this type.
  • Private limited company (sociedade por quotas, "Lda"). At least two partners, each holding a share (quota) of at least €1. Same tax and liability as the single-member form.
  • Public limited company (sociedade anónima, "SA"). Minimum capital of €50,000 and, as a rule, at least five shareholders. It suits businesses raising outside investment.

Some regulated activities need more capital than these minimums.

Sole trader or limited company

There is no fixed turnover at which a company becomes worthwhile. Weigh these points.

A sole trader setup suits you if:

  • Your work carries little risk of large claims.
  • You have no staff and little stock.
  • Your profit is modest, so the lower income tax bands keep your tax low.
  • You want the least paperwork.

A limited company suits you if:

  • You want your home and savings kept apart from business debts.
  • You plan to hire, hold stock, or sign large contracts.
  • Your clients prefer to deal with a company.
  • Your profit is high enough that corporate tax plus tax on dividends beats income tax at your top band.

A company needs a certified accountant (contabilista certificado) and yearly accounts. Ask an accountant to run both options on your real numbers before you decide.

What you need before you register

For every partner:

For the company:

  • A name. Pick one from the list of pre-approved names, or get a name certificate (certificado de admissibilidade) from the national register of legal persons (RNPC). The certificate costs €75, or €150 for urgent handling. It is valid for three months, and you must register the company within that time.
  • A registered office address (sede). Check that your lease or building rules allow business use.
  • An activity code (CAE). It describes your main activity and, for some trades, decides which licences you need.
  • Share capital. You can deposit it before you register, within five working days after, or declare that partners will pay it in by the end of the first financial year.
  • A certified accountant. You can name one at registration or pick one from the official list.

Register at an Empresa na Hora desk

Empresa na Hora means "company on the spot". The Institute of Registries and Notaries (IRN) runs it.

  1. Book an appointment through the Justice portal, or go to an Empresa na Hora desk. Any desk will do, wherever your office will be.
  2. Bring every partner. All partners must be present.
  3. Choose a pre-approved name, or bring your approved name certificate.
  4. Choose one of the pre-approved sets of statutes (pacto social).
  5. Name your accountant, or choose one from the list. If you do neither, you must register the activity at any Finanças office within 15 days.
  6. Pay €360.

Bring these documents:

  • Each partner's identity document.
  • Each partner's NIF.
  • If a partner is a company: its company card or access code, the board decision authorising its representatives, and their identity documents.

You can create a single-member company, a company with partners, or an SA at the desk. A European company (SE) is not possible there. Adding a trademark costs €200 for one class of goods or services, plus €44 for each extra class.

When the process is complete, you receive:

  • The company's statutes.
  • An access code to the company's permanent registry certificate (certidão permanente).
  • An access code to the company card.
  • The company's social security number.

Register online

The online service (Empresa 2.0) runs on the Justice portal.

  1. Log in with the Citizen Card or the Chave Móvel Digital (digital mobile key). If you are a foreign citizen, you can use a Chave Móvel Digital linked to your passport, or a European eID.
  2. Fill in the partners, managers, activity code, purpose, capital, office address, and name.
  3. Declare the company's beneficial owners.
  4. Every partner and manager gets an email asking them to sign the statutes and accept their role digitally.
  5. Pay within 48 hours by MB Way, Multibanco, or card.

What it costs:

  • Pre-approved statutes: €220, or €440 for urgent handling.
  • Your own statutes: €360, or €720 for urgent handling.

If the registry finds a problem, you have five calendar days to correct it, and a correction costs €30. When the registration is approved, you get the access codes by email. The physical company card follows by post, free.

You cannot register online if:

  • Any partner has no Portuguese NIF.
  • Any partner is under 18.
  • A partner is a foreign company without a Portuguese company number.
  • Capital is paid in property or goods rather than money.

What to do in the first month

  1. Pay in the share capital within five working days, unless you paid it already or declared it will be paid by the end of the first financial year.
  2. Declare the beneficial owners (the real people who own or control the company) within 30 days, if you did not do it during registration. You also confirm the declaration once a year. See Declaring a Company's Beneficial Owners (RCBE) in Portugal.
  3. Register the activity at Finanças within 15 days, if you did not name an accountant at registration.
  4. Open the company bank account. Banks run identity checks on every partner and beneficial owner. This is often the slowest step. See Opening a Bank Account in Portugal.
  5. Set up social security for the manager (see below).
  6. Choose your VAT and invoicing setup with your accountant.
  7. Get any sector licence before you trade, if your activity is regulated.
  8. Before you hire, read Hiring Your First Employee in Portugal. The minimum wage is €920 a month in 2026. The company adds 23.75% social security on top of the worker's 11%. The law also requires you to insure your staff against workplace accidents.

Taxes your company pays

Corporate tax (IRC)

For tax years starting in 2026:

  • The general rate is 19%.
  • If your company qualifies as a small or medium business, the first €50,000 of taxable profit is taxed at 15%.
  • Your town hall may add a local surcharge (derrama municipal) of up to 1.5% of taxable profit. Each council sets its own rate.
  • Large profits pay a state surcharge: 3% on profit between €1.5 million and €7.5 million, 5% up to €35 million, and 9% above that.

The law already sets the general rate at 18% for 2027 and 17% from 2028.

VAT

The mainland rates are 23%, 13%, and 6%. The Azores and Madeira have lower rates. A company with turnover of €650,000 or more in the previous year files VAT monthly; smaller ones file quarterly. A company based in Portugal can also use the small business VAT exemption if its turnover is €15,000 or less.

Social security for the manager

If you manage the company (as gerente), you are a member of its statutory bodies (membro de órgão estatutário). Social security treats you differently from an employee.

  • The usual rates are 20.3% paid by the company and 9.3% by you, 29.6% in total.
  • If you have management duties and unemployment cover, the rates are 23.75% and 11%, the same as for employees.

How the minimum base works, and whether an unpaid manager still owes contributions, depends on your situation. Ask your accountant before the first month ends.

A sole trader pays as a self-employed worker instead, at 25.2% of relevant income. See Registering as Self-Employed (Recibos Verdes) in Portugal.

Taking money out of the company

You can take money out in two main ways:

  • Salary as manager. You pay income tax at the normal rates, from 12.5% to 48% for 2026, plus your social security share. The company deducts the salary as a cost.
  • Dividends. Paid from profit after corporate tax. If you are tax resident, the company withholds 28% as a final tax. You can choose to add the dividend to your other income instead. Only 50% of it is then taxed, which can work out cheaper.

Special regimes can change this. See Qualifying for the IFICI Tax Regime That Replaced NHR and get advice before you rely on one.

What it costs

ItemCost
Empresa na Hora desk€360
Online, pre-approved statutes€220 (€440 urgent)
Online, your own statutes€360 (€720 urgent)
Online correction, if needed€30
Name certificate, if you want your own name€75 (€150 urgent)
Trademark added at the desk€200 for one class, plus €44 per extra class
Share capitalfrom €1 per partner (Lda), €50,000 (SA)
Certified accountanta monthly fee; ask two or three for quotes

Banks may ask for more than the legal minimum capital before they open a company account. Ask your bank first.

Who can be a founder

Portuguese company law does not require partners or managers to live in Portugal. Every partner needs a Portuguese NIF. For online registration, every partner also needs a digital signature through the Citizen Card or the Chave Móvel Digital.

Owning a company does not give you the right to live in Portugal. If you are not an EU citizen, you need a visa. See Getting the D2 Entrepreneur Visa for Portugal or Getting the StartUP Visa for Portugal.

Closing the company

Closing takes longer than opening. The partners decide to dissolve the company, settle its debts, file the final tax returns, and close the activity at Finanças. Ask your accountant which route fits your case.

This guide is general information, not legal or tax advice. Rules change often; check the official source before you act.

Sources

This guide is written from official sources and, where relevant, organisations' own websites.

Last verified October 2026. Rules and fees change; check the official source before acting.

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