If you are considering incorporating a company in Portugal, there are several factors you need to consider.


In this article, we will discuss the steps involved in incorporating a Portuguese company, including:

  • Choosing the right type of company structure
  • Registering the company with the Portuguese Commercial Register
  • Obtaining a Tax Identification Number (NIF)
  • Opening a bank account
  • Obtaining a business license


Choosing the Right Type of Company Structure


Types of Companies:

1) Limited Liability Companies (Sociedades por Quotas, ‘LDAs’)

2) Joint Stock Companies (Sociedades Anónimas, ‘SAs’)

LDAs are the more common type of company in Portugal. They are relatively easy to set up and have a lower minimum share capital requirement compared to SAs. Conversely, SAs are more complex to establish and require a higher minimum share capital but offer benefits such as greater capacity to raise capital.


The table below summarises the key differences between SA and LDA companies in Portugal:

Credits: Supplied Image; Author: Client;

Additional considerations when choosing between an SA and an LDA:

  • Future Growth Plans: If you plan to grow your business and attract investors, an SA may be more suitable due to its wider recognition and acceptance among investors.
  • Management Structure: If you prefer more control over your business management, an LDA may be more appropriate due to its flexible management structure.


Here are the following steps in the incorporation process:


Registering Your Company

After selecting your company type, registration with the Portuguese Commercial Register (Registo Comercial) is mandatory. You'll need to provide the proposed company name, shareholder details, and director information.


Obtaining a Tax Identification Number (NIF)

Upon registration, your company will receive a Tax Identification Number (NIF) from the Portuguese tax authorities, essential for business operations and compliance


Opening a Bank Account

Next, you'll need to open a corporate bank account with a Portuguese or international bank. This account facilitates transactions with local authorities and tax refunds.


Corporate Tax Rates

Corporate tax rates in Portugal vary, dependent on factors such as the location of the company as well as the taxable income. Read here for more information.


Business License (if applicable)

If your company plans to operate an office or store open to the public, obtaining a business license is necessary. Further, companies may be able to register for a license under the Madeira International Business Centre which provides a number of benefits, including a lower tax rate of 5%. Read here for more information on the MIBC.


Consulting Professionals

Get in touch with Dixcart Portugal for more information to ensure that an introduction is made to the appropriate professional with the relevant background and expertise to manage your new business venture: advice.portugal@dixcart.com.