Question 1

How much does it cost and what documents do you need to open a company?What is included in the monthly fee?

Accepted Answer

The cost of opening a company in Portugal can vary depending on the type of company and the additional services you may need. In general, opening a company through the "Empresa na Hora" service has a fixed cost of 360 euros. This service allows you to set up your company quickly and easily, in just one visit to a service desk.

To open a company, the following documents are required:

Citizen's Card or Passport for all partners.
Certificate of Admissibility of the Company Name, which can be obtained from the National Registry of Legal Persons (RNPC) to ensure that the company name is not already registered.
Memorandum of Association or Company Incorporation Document, which establishes the rules of operation and the rights and duties of the partners.
Declaration of Commencement of Activity with the Tax and Customs Authority.
Proof of address of the registered office, which can be a lease agreement, deed of sale or other document proving ownership or use of the space.
Tax Identification Number (NIF) of the partners, if they are resident in Portugal. For foreign partners, it is necessary to obtain a temporary NIF.

In addition, depending on the type of activity, other specific documents may be required, such as licences or special permits.

*The information provided on this website is for informational and educational purposes only. Although we endeavour to keep the information up-to-date and accurate, tax and regulatory rules can change and vary depending on individual circumstances. We therefore recommend that customers always check the validity and applicability of the information with the relevant authorities, such as the Tax and Customs Authority (AT) or qualified tax advisers. We cannot be held responsible for any decisions made on the basis of the information provided here.

Question 2

What is the initial capital to start a business?

Accepted Answer

The initial capital requirement for starting a business in Portugal varies depending on the type of company you want to set up. Here are the main types of companies and their initial capital requirements:

1. Private Limited Company (Lda):

- Minimum share capital: 1 euro per share (per partner)

- Note: The total capital can be any amount greater than 1 euro, depending on the decision of the partners. For example, if there are two partners, each can contribute 1 euro, totalling 2 euros of share capital.

2. Sociedade Unipessoal por Quotas (Unipessoal Lda):

- Minimum share capital: 1 euro

- Note: As with a Private Limited Company, the share capital can be increased as necessary.

3. Public Limited Company (SA):

- Minimum share capital: 50,000 euros

- Note: The share capital must be divided into shares, with a minimum nominal value of 1 euro per share.

4. Co-operatives:

- Minimum Share Capital: There is no fixed minimum amount stipulated by law. The share capital is defined by the co-operative's statutes, but it must be sufficient to cover the co-operative's initial needs.

Remember that although the minimum share capital may be low (especially for limited companies), it is advisable to assess the real needs of the business to ensure that you have sufficient resources to start the activity successfully.

*The information provided on this website is for information and educational purposes only. Although we endeavour to keep the information up-to-date and accurate, tax and regulatory rules can change and vary depending on individual circumstances. We therefore recommend that customers always check the validity and applicability of the information with the relevant authorities, such as the Tax and Customs Authority (AT) or qualified tax advisers. We cannot be held responsible for any decisions made on the basis of the information provided here.

Question 3

Should I open a company or business?

Accepted Answer

The decision between starting a company or becoming a sole proprietor in Portugal depends on a number of factors, including your specific needs, business plans and financial strategies. Let's consider some important points to help you make your decision:

Opening a Company

Advantages:

1. Limited liability: In companies such as Sociedade por Quotas (Lda) or Sociedade Anónima (SA), the partners have liability limited to the company's share capital.

2. Credibility: Companies tend to convey greater credibility to clients and business partners.

3. Joint management: Possibility of having several partners with different competences to manage the business.

4. Access to finance: Potentially easier to obtain bank finance or external investment.

Disadvantages:

1. Complexity and Cost: More complex and costly incorporation process, including public deed, commercial registration, among others.

2. Legal and accounting obligations: Requires compliance with stricter legal and accounting obligations.

Opening a business (Entrepreneur)

Advantages:

1. Simplicity: Simpler and faster opening process, usually requiring only the completion of an online form.

2. Lower cost: Lower initial costs compared to setting up a company.

3. Flexibility: Greater flexibility in management and decision-making, since there is no need to consult other partners.

Disadvantages:

1. Unlimited Liability: You are liable for the company's debts with all your assets, there is no separation between personal and business assets.

2. Limitations on Expansion: It can be more difficult to expand the business or attract significant investment without the legal structure of a company.

How to Decide?

To decide whether to start a company or a business, consider the following points:

1. Nature of the Business: The type of business you want to start and its scale can influence the choice. Larger businesses generally benefit from the legal structure and credibility of a company.

2. Risks and Liability: Evaluate the risk level of your business and your willingness to take on financial responsibility. If you want to limit your personal liability, a company may be the best option.

3. Growth Plans: Consider your long-term growth plans. If you hope to expand your business significantly or are thinking about strategic partnerships, a company can offer more flexibility and opportunities.

4. Costs and Complexity: Consider the initial costs and administrative requirements associated with each option. If you prefer a simpler, more cost-effective approach, setting up as a sole proprietor may be more suitable.

5. Professional advice: Don't hesitate to consult an accountant or lawyer specialising in business law for personalised advice based on your specific situation.

In short, the choice between setting up a company or business depends on your individual needs, business objectives and comfort with the complexity and responsibilities associated with it.

*The information provided on this site is for informational and educational purposes only. Whilst we endeavour to keep the information up to date and accurate, tax and regulatory rules can change and vary depending on individual circumstances. We therefore recommend that customers always check the validity and applicability of the information with the relevant authorities, such as the Tax and Customs Authority (AT) or qualified tax advisers. We cannot be held responsible for any decisions made on the basis of the information contained herein.

Question 4

What is the cost and what documents are needed to open an Activity?

Accepted Answer

Opening an activity in Portugal as a self-employed person is a simple process and has no direct associated cost. The process can be carried out online via the Finance Portal.

The documents and information required:

1. Tax Identification Number (NIF) - Your tax number.
2. Access password to the Finance Portal - To access the online service.
3. Activity you are going to carry out - You must know the specific activity you intend to start, according to the Portuguese Classification of Economic Activities (CAE).
4. Expected turnover for the year - An estimate of your expected annual income.
5. Indication of imports, exports or intra-community transmissions - Information on whether you are going to carry out operations with other countries in the European Union or outside it.
6. Bank Identification Number (NIB) - In the event of receiving tax refunds.

To open your business, follow these steps:

1. Access the Finance Portal with your NIF and password.
2. Choose the "Start of Activity" option and fill in the form with the information requested, including the activity you will be carrying out, the expected turnover and whether you will be carrying out intra-Community or international operations.
3. Submit the form online. Your activity is now open and registered with the Tax and Customs Authority.

Once the activity has been opened at the Tax Office, registration with Social Security is done automatically. You don't need to carry out a separate process for Social Security, as the current system handles this registration in an integrated manner.

*The information provided on this site is for informational and educational purposes only. Although we endeavour to keep the information up-to-date and accurate, tax and regulatory rules can change and vary depending on individual circumstances. We therefore recommend that customers always check the validity and applicability of the information with the relevant authorities, such as the Tax and Customs Authority (AT) or qualified tax advisers. We cannot be held responsible for any decisions made on the basis of the information provided here.

Question 5

What are the IRS deadlines?

Accepted Answer

The IRS deadlines in Portugal are as follows:

From 1 April to 30 June for all income, regardless of income category.

*The information provided on this website is for informational and educational purposes only. Whilst we endeavour to keep the information up to date and accurate, tax and regulatory rules can change and vary depending on individual circumstances. We therefore recommend that customers always check the validity and applicability of the information with the relevant authorities, such as the Tax and Customs Authority (AT) or qualified tax advisers. We cannot be held responsible for any decisions made on the basis of the information provided here.

Question 6

How can I get my Tax Identification Number?

Accepted Answer

The NIF can be obtained from the Tax and Customs Authority (AT) or at a Citizen's Bureau. For foreign citizens, a valid identification document and proof of residence must be presented.

*The information provided on this website is for informational and educational purposes only. Although we endeavour to keep the information up-to-date and accurate, tax and regulatory rules can change and vary depending on individual circumstances. We therefore recommend that customers always check the validity and applicability of the information with the relevant authorities, such as the Tax and Customs Authority (AT) or qualified tax advisers. We cannot be held responsible for any decisions made on the basis of the information provided here.

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