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Foreigners are welcome and no special restrictions apply to foreign shareholders or directors in Portugal. This country has agreements with 48 other countries for the reciprocal protection and promotion of investments, and agreements with 64 countries for the avoidance of double taxation.
Portugal also offers low operating costs, including a highly educated population (42% of which speak at least one foreign language), a skilled but cheap labour force (50% of the EU average cost), and highly developed infrastructure and communications networks. Last but not the least, the country is a potential gateway to a market of about 250m people in the Portuguese speaking countries and communities.
The most popular formats used by non-resident investors are the sociedade por quotas (Lda), a private company limited by shares (called "quotas") and having no minimum capital requirements, having no separate legal personality.
Sociedade por quotas (Lda) is by far the most common type of business entity. This is a private limited liability company having the share capital divided into “quotas” of at least 1 euro each. There is no minimum capital requirement, but it must have a minimum of 2 quota holders. The transfer of quotas is subject to registration with the Commercial Registry.
An Lda may at any time elect to “upgrade” to an SA (see below). Should an Lda have a sole quota holder for more than one year, it must “downgrade” to a Unipessoal Lda
The second most popular legal format. It is a corporation/public limited company with a minimum capital of EUR 50,000, at least 30% of which must be paid up on incorporation. Capital is represented by freely transferable shares, which may be issued to the bearer, and, except where the founder is a non resident company, there must be an initial number of shareholders of not less than 5. The SA is the most demanding entity in terms of regulatory compliance and, irrespective of size, its accounts have to be audited annually by a certified auditor..
A sole trader or independent professional may choose among one of 2 business entity formats: the Unipessoal Lda, which is essentially an Lda having a single quota holder and the sole trader or independent professional having unlimited liability.
FQ Partners provide full company services in Portugal, including incorporation, registration, domiciliation, bank account opening, accounting, etc, as may be needed by their Client. In case you are a resident or, being a non-resident, have Portugal-source income that is not subject to autonomous tax withholding at source, you have to file a mandatory annual income tax return.
Naturally, Portuguese business entities must keep accounts in accordance with the rules and file various periodic tax returns.
FQ Partners provides Portugal accountancy and tax compliance services to both individuals and businesses.
