How to start a business in Portugal: Requirements and steps

More entrepreneurs and remote workers now choose to open a company in Portugal to establish their businesses. Its competitive tax system, access to the European Union market, faster procedures than most European countries, and excellent quality of life at this price make it highly attractive. It is no coincidence that, according to data from Informa D&B, nearly 33,000 new businesses were registered in the country during the first half of 2025.

If you’re considering this move as a foreigner, you’re in the right place. This guide explains everything you need to know: Costs, company types, taxes, and the complete step-by-step process. 

How much does it cost to open a company in Portugal?

The first question most people ask before starting involves the required budget. Fortunately, here comes some excellent news: Portugal is one of the most affordable countries in Europe for setting up a company.

The minimum share capital for a limited company stands at €1 ($1.10) per partner. This contrasts sharply with countries like Germany, where a GmbH requires €25,000 ($27,500) minimum capital, or Spain, where SL companies recently required €3,000 ($3,300).

However, share capital isn’t the only expense. Let’s break down the actual costs you’ll face.

1. Company Registration Fees

 You can choose between three methods, and prices vary accordingly:

• Online company registration with pre-approved articles of association: From €220 ($242). It is the most affordable option. It is done through ePortugal.gov.pt and, with an electronic certificate, it can be completed within one or two days.
• Empresa na Hora (in-person registration): €360 ($453). This service operates at Lojas do Cidadão and Instituto de Registos e Notariado (IRN) offices. In many situations, the company becomes officially registered the same day.
• Incorporation through a notary and a lawyer: Between €650-1,025 ($715-1,127.50), depending on the articles’ complexity. This option suits businesses needing customised statutes or more complex corporate structures.

2. Company Name Approval Certificate

If you want a customised company name, you must request approval from the IRN. The cost reaches €75 ($82.50) without urgency and €150 ($165) with urgency. The certificate remains valid for three months, which gives you enough time to complete registration. Alternatively, if you select a pre-approved name from ePortugal.gov.pt, this procedure becomes completely free.

3. Certified Accountant (TOC)

Every company in Portugal must appoint an official certified accountant from the beginning of operations. This service isn’t optional. Monthly fees vary according to turnover and business activity, although you must include this recurring expense in your budget from day one.

4. Opening a Business Bank Account

Some banks charge account opening or maintenance fees. Therefore, compare conditions carefully before deciding, because traditional banks and digital banking platforms offer very different terms. You can learn more in our article about the best banks for foreigners in Portugal.

5. Other One-Off Costs

If your sector requires specific operating licences, or if you hire a solicitor to review the statutes, these fees increase the total cost. Furthermore, if your share capital includes non-cash assets such as machinery, vehicles, or equipment, additional fees apply: €50 ($55) per property and €30 ($33) per movable asset.

Overall, opening a standard Lda. usually costs between €400-800 ($440-880), excluding monthly accounting services. Consequently, Portugal offers one of Western Europe’s lowest entry barriers for establishing a limited liability company.

What Types of Companies Can You Open in Portugal?

Choosing the right legal structure from the beginning makes a huge difference. This decision goes beyond formality: The company type affects your personal liability, taxation, and monthly administrative obligations. These are the most relevant options for foreigners.

1. Sociedade Unipessoal por Quotas (Single-Member Lda.)

This structure remains the most common option for solo founders. One shareholder and liability limited to invested capital. Therefore, if problems arise, your personal assets stay protected.

The minimum share capital stands at €1 ($1.10), although most professionals recommend starting with at least €1,000 ($1,100). This amount helps with bank account approval and builds trust with suppliers and clients. Freelancers, consultants, and digital nomads usually prefer this option because it offers corporate protection without requiring partners.

2. Sociedade por Quotas (Lda.)

This structure suits two or more shareholders. It remains Portugal’s most common SME structure.

The minimum share capital totals €2 ($2.20), meaning €1 ($1.10) per shareholder. Each partner’s liability stays limited to their participation value. This option offers excellent flexibility for projects shared between two or three founders, while allowing proportional capital distribution according to each partner’s role in the business.

3. Sociedade Anónima (SA)

This structure suits ambitious projects planning to attract investors, raise external capital, or eventually enter the stock market.

It requires minimum capital of €50,000 ($55,000) and a more complex governance structure, including a board of directors and mandatory auditing. Individual entrepreneurs and SMEs rarely choose this option. However, it works well for businesses targeting rapid growth or institutional funding.

4. Empresário em Nome Individual (ENI)

It doesn’t create a separate legal entity: The entrepreneur and business remain legally identical, which creates unlimited liability.

Therefore, your personal assets remain exposed to business debts. It is the simplest way to get started, with less bureaucracy and no minimum capital requirement, but with less protection. For low-risk activities with limited turnover, this structure often works best.

5. Branch or Subsidiary of a Foreign Company 

If you already own a company abroad and want expansion into Portugal, you have two options. You can open a branch (estabelecimento estável), which operates as an extension of the parent company, or create a subsidiary, which becomes an independent legal entity with separate legal personality.

In both cases, the process requires IRN registration with additional documentation from the original company: The incorporation deed, current statutes, and power of attorney authorising the registration representative.

Your final choice depends on factors such as shareholder numbers, business risk, investment needs, and growth expectations. Therefore, consulting a specialised solicitor or consultancy before deciding usually saves both time and money.

What Requirements Apply When Opening a Company in Portugal?

Can foreigners open a company in Portugal? Yes, without legal restrictions. Anyone holding a Portuguese tax identification number can do it, regardless of nationality. However, you must meet several requirements before taking the first step.

1. Tax Identification Number (NIF)

Without a NIF, you can’t complete any fiscal or business procedure in Portugal. Therefore, this becomes your first and most urgent task. EU citizens can obtain it at any Autoridade Tributária e Aduaneira (AT) office using a passport or identity document. The process is free and usually moves quickly.

If you come from outside the EU, you need a tax representative residing in Portugal to apply. Many consultancies and specialist firms handle this service remotely, which means you won’t need to travel solely for this procedure.

2. Fiscal Address in Portugal

Your company needs a registered business address within Portuguese territory. However, you don’t need a private office. Coworking spaces, shared office addresses, or virtual office services from specialist companies all work perfectly well.

The important factor involves using a real address where official notifications can arrive.

3. Resident Legal Representative

At least one shareholder or appointed representative must hold legal and fiscal residency in Portugal. If no shareholder lives in the country, you must appoint someone meeting this requirement. This representative acts on behalf of the company before authorities and assumes certain legal responsibilities.

4. Business Bank Account 

After company incorporation, you must open a bank account under the company’s name to deposit share capital and manage financial operations.

Some traditional banks require physical presence for account opening. Meanwhile, digital banks such as Revolut Business or Wise Business often allow remote applications. Nevertheless, you should compare conditions carefully before starting the incorporation process.

If you want more details, read our guide about opening a bank account in Portugal as a foreigner.

5. Certified Accountant (TOC)

In Portugal, every company must appoint an official certified accountant from the beginning of business activity. You can’t postpone this requirement. The accountant handles the declaration of commencement of activity, monthly accounting, periodic VAT returns, and the annual corporate income tax (IRC) return.

6. Visa for Non-EU Citizens

If you come from outside the European Union, you need the correct visa to reside and operate legally in Portugal. Entrepreneurs usually apply for the D2 visa, designed for founders and investors creating or managing businesses in Portugal, or the D3 visa, aimed at highly qualified professionals.

EU citizens, don’t need visas and enjoy the same rights as Portuguese citizens when living and working in Portugal.

Which Taxes Must You Pay When Opening a Company in Portugal?

Portugal’s tax system remains one of the strongest reasons for choosing the country as your business base. Although Portugal doesn’t offer Europe’s lowest taxes, it delivers an excellent balance between tax rates, SME benefits, and regional incentives. Let’s review the taxes directly affecting businesses.

1- IRC (Corporate Income Tax)

This tax works as Portugal’s equivalent of corporation tax. From 2025, the general rate dropped from 21% to 20% on taxable profits. SMEs benefit even more because the first €50,000 ($55,000) of taxable income qualifies for a reduced 16% rate, which creates meaningful savings for early-stage businesses.

If you operate from autonomous regions, tax rates become even more competitive. In Madeira, the standard rate dropped to 14%, while the Madeira International Business Centre (MIBC) offers a special 5% regime on income generated with non-resident entities. The Azores also apply reduced rates to encourage economic activity across the archipelago.

Companies must submit the IRC declaration annually before 31 May following the fiscal year. Businesses reporting profits in previous years must also make instalment payments in July, September, and December.

2- Local Tax

This tax adds a local surcharge on taxable profits, reaching a maximum rate of 1.5%. Lisbon and Porto apply the highest rate. Meanwhile, other municipalities apply lower rates, and some locations, such as Funchal in Madeira, don’t apply it at all. Importantly, companies reporting losses don’t pay this tax.

3- VAT (Value Added Tax)

This system works similarly to other European countries’ VAT structure. Portugal applies three VAT rates: 23% standard, 13% intermediate, and 6% reduced. If your annual turnover exceeds €15,000 ($16,500), you must register for VAT. Below this threshold, you can operate under an exemption regime, which simplifies administration during your first months.

VAT-registered businesses must submit regular returns, either monthly or quarterly depending on turnover. In addition, they can deduct VAT paid on purchases and business expenses.

4- Social Security contributions

As an employer, you must contribute 23.75% of each employee’s gross salary to Portugal’s Segurança Social system. Employees contribute an additional 11%, deducted directly from payroll. Company directors must also register with Social Security, even without receiving salaries, unless they prove coverage under another recognised scheme.

Another important advantage deserves attention: Portugal has signed double taxation agreements with more than 70 countries. Therefore, entrepreneurs operating across several countries can avoid paying taxes twice on the same income.

Steps to Start a Company in Portugal

Once you understand the requirements and choose your structure, the process follows a logical order. Here’s the complete journey, step by step.

1. Obtain Your NIF

The absolute startin point. Without a NIF, you can’t move forward. EU citizens should visit any Autoridade Tributária office with their identity document. The process is completely free.

If you come from outside the EU, you’ll need a Portuguese tax representative. Many consultancies provide this service remotely, which saves you from travelling specifically for this procedure.

2. Choose Your Company Name

You have two options. First, you can select a pre-approved name from the ePortugal.gov.pt portal. This option stays free and speeds up the process. Alternatively, you can request a customised name through the Certificado de Admissibilidade da Firma from the IRN. This certificate costs €75 ($82.50) without urgency and €150 ($165) with urgency, while remaining valid for three months.

You must complete registration within that period, otherwise you’ll lose the name reservation.

3. Define Your Fiscal Address

You need a registered business address in Portugal before registering the company. This address can belong to a private office, coworking space, or virtual office provider. If you still haven’t decided where to operate physically, a virtual address from a consultancy or specialist provider offers a practical and affordable solution.

4. Register the Company

At this stage, you can choose between three options. The fastest and cheapest route involves Empresa Online through ePortugal.gov.pt. This method allows completion within one or two days using electronic certification from anywhere, costing €220 ($242) with pre-approved articles of association.

The in-person alternative involves Empresa na Hora, available at Lojas do Cidadão and IRN offices nationwide. For €360 ($396), your company can become fully incorporated the same day. However, if your project requires customised statutes or a more complex structure, the notarial route with a solicitor suits you better, although it costs more and takes longer.

5. Open the Bank Account and Deposit Share Capital

Once the company becomes incorporated, you have five days to deposit the share capital into a bank account under the company’s name. Available options include Portuguese banks such as Millennium BCP, Caixa Geral de Depósitos, and Santander Portugal, alongside digital platforms like Revolut Business and Wise Business.

Therefore, compare fees and conditions carefully before deciding, because the differences can become significant.

6. Declare the Start of Activity Before the Autoridade Tributária

You have 15 days after incorporation to declare the start of activity before the AT. Usually, your certified accountant handles this process and also registers company directors with Segurança Social within the same timeframe.

Don’t delay this step, because late submission can trigger fines.

7. Obtain Activity-Specific Licences

Depending on your sector, you may need additional licences before starting operations or invoicing clients. Regulated industries such as hospitality, construction, healthcare, and financial services follow specific requirements that vary according to business activity.

Your accountant or specialist solicitor can explain which rules apply to your particular situation.

Internet for Business Trips to Portugal

If you travel to Portugal for meetings, legal procedures, or temporary relocation, losing internet access creates unnecessary stress. Confirming an address, accessing the AT portal, or replying to an urgent supplier email all depend on staying connected. Therefore, the Holafly eSIM for Portugal offers an excellent solution because it provides unlimited data throughout your stay.

If you plan to settle in Portugal permanently, Holafly’s monthly plans make a stronger choice. You can select between 25 GB and unlimited mobile data, depending on your usage. In both cases, the same eSIM works across more than 160 countries. The process stays extremely simple: Activate, pause, or change your plan whenever you want, without contracts or long-term commitments.

For entrepreneurs moving between countries while managing a business, that flexibility delivers real value. In addition, when your main plan ends or pauses, Always On automatically activates: 1 GB of monthly data in more than 70 countries, including Portugal, without additional costs or manual activation.

It activates automatically and works as a silent safety net that always remains available. Therefore, you’ll have enough data to handle urgent tasks while planning your next move.

Frequently Asked Questions About Opening a Company in Portugal

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