Portugal offers a great opportunity for individuals to set up a new business or expand their existing one. Establishing your business in the European market is lucrative and it is not hard for one to understand why that is the case. The entrepreneur scene in Portugal is still in its infancy, so it is not really difficult for someone to start a business in Portugal and acquire a considerable market share quickly. Even if one is thinking about business acquisitions in Portugal, one can do that easily with only a fraction of cost than it would take to acquire a business in several other European countries.
Another benefit of setting up a business in Portugal is that Portugal is a member of the European Union, and a company registered to do business within the Portuguese Republic. You can easily do business in not only the other 26 members of the European Union, but with the wider world under several treaties signed by EU also. Apart from this, the companies registered with them can take advantage of doing business with almost all states across the globe. They actually don’t have to be worried about tariffs, foreign trade, etc.
Although, it may seem like a match made in heaven and registering a business in Portugal is not at all complex and, in all seriousness, a straightforward task. Still, without going through the proper channels and getting appropriate permissions and certifications, a business cannot legally operate on the Portuguese shores. The punishment for unapproved operations is quite steep in Portugal and could result in some serious jail time for the individuals involved. Obviously, it is in better interest for everyone to get authorisation to operate in Portugal as soon as possible.
Before registering a business in Portugal, an individual has to have certain documents to be eligible to do business in Portugal. These are a Residency Permit, a unique tax number issued by the Portuguese Tax Office and a Social Security Number, which is a unique number assigned to the individual. Without any of these documentations, an individual cannot operate in Portugal; so, getting these documentations is the primary task.
Once you have obtained the necessary documentation, you are eligible to set up a business in Portugal. Portugal allows a company to be registered, and they have to be among the following categories:
Business owned by an individual
- Sole Trader
- Single-member Limited Company
- Individual Limited Liability Establishment
Business owner by more than one individual
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership
One cannot register a business entity that is not among these categories.
How to register a business in Portugal?
There are several ways one can register their business via the Portuguese authorities. Portugal offers a business three different ways to register them in Portugal, although some ways are only applicable to few types of businesses.
One can register their business to the Portuguese authorities via the online method in the Portuguese Republic. The whole process, submission to the approval of the registration, is generally completed within 1 to 2 days, again depending on the documents submitted by the applicant. This method has become quite popular in the last year and a half due to the COVID-19 virus and the travelling restrictions imposed by the Portuguese government. This whole process would cost around €360.
On the Spot Registration
On the Spot Registration is almost identical to the online registration process, with the sole difference that companies have to book online appointments. After that, companies have to show up at the registration venue with the necessary documentation to support their claim. Only limited companies and sole traders are eligible to apply for registration via this process. Once you take the appointment, it would take at least an hour for your company to get registered. The cost of registration is also only €360. It is highly advisable that all business partners as well as legal representatives of the company need to be present at the appointment.
Traditional method of Registration
For those businesses that are not eligible to be registered via the other two methods, they have traditional method to go with. If you are not sure whether or not your business is eligible for On the Spot Registration or Online Registration, just apply via Traditional Method.
The traditional method is a bit lengthy process and would take at least 15 days for completion. Make sure you follow the guidelines laid out by the Registration Office for applying for Registration.
If you are a foreign company and want to set up a branch on Portuguese soil, you need to have the following documents:
- Incorporation documents of the Parent Company
- Documents attesting approval by the company’s board
- Power of Attorney
If you are looking to hire foreign staff in your Portuguese branch, there are procedures you have to follow:
- EU/EFTA citizens can work at your business without any additional documentation.
- Non-EU/EFTA citizens need a valid working permit.
Whatever business needs may be, setting your venture abroad is indeed a complex task. When you take advantage of immigration consultants, you easily set your venture in Portugal and make profits out of your investment. You can also follow this post and make your journey of setting up a venture in Portugal easy. No one could prevent you from attaining success but be sure to move ahead with a calculated mind and kickstart your business.