Many people want to launch a venture in Portugal. As per Ernst and Young, Portugal enjoys greater corporate confidence than nations like Italy, Belgium, and the UK. In Portugal, where there are millions of highly qualified individuals, the state provides public monetary help to firms that are dedicated to entrepreneurship.
The Central Bank ranks the country 39th out of 190 nations in its measure of the convenience of conducting trade, indicating the resilience of the Portuguese economy. By starting a corporation in Portugal, your organization can also access the EU sector, which is home to 23% of the actual worldwide GDP. You require citizenship in addition to tax and personal insurance to start a venture here.
One of Portugal’s most popular company structures is covered in this guide: the corporation (SA). It outlines the procedures you must follow and the types of taxes
Portuguese corporation
Sociedade Anónima (SA), is a public limited firm with an investment adequacy of €50,000 and a minimum of 30% deposit upon registration. it is the second most prevalent type of corporate body. A SA must have at least five stakeholders and be capitalized through freely movable units.
Steps of business registration
Check to see if you can lawfully launch an enterprise in the nation before you go into the specific aspects of doing so. You must have your Portuguese resident permit, a public insurance number, and tax identification information from the Portuguese revenue authority. You require a Portuguese valid passport and resident license if you wish to launch a corporation and are a citizen of a country outside of the EU. The fundamental steps for implementing the SA in the nation are as follows:
- Selecting the name
Create a list of potential names for your firm and search the Portuguese Directory of Company Titles to see if your top choice is already registered. If not, you should file the name of your firm by purchasing a €75 Certificado de Admissibilidade, or Confirmation Letter, from the Federal Registrar of Businesses. Normally, the license is good for 90 days.
- Apply for tax id
The most crucial step in the registration process is filing for the firm’s tax file number. It’s possible that you wouldn’t be able to engage in any business activity if you hadn’t gotten the tax Number.
The following corporate tariff categories are those for which you must file:
Corporate income tax
Corporation tax in Portugal is payable by enterprises. Portugal requires businesses to pay their commercial duty in three equal monthly installments: July, September, and December. The country has a flat commercial duty ratio of 21% on capital gain, which is a little under the average for the European Community of 21.9%.
Social security
You have to pay into State Pensions if you have the personnel. The Basic Social Levy is equal to 34.75% of each laborer’s total wage. Firms pay 23.75% of this while workers pay 11%.
VAT
Value Added Tax must be paid to the tax officials by individuals working for themselves as well as businesses that manufacture, sell, or offer services in Portugal. When customers buy these products and commodities, they are responsible for paying the VAT. VAT, which is paid by customers, is essentially cash that the business holds onto until it must be repaid to the government. Firms having a turnover of at least €650,000 must provide VAT every month, while those with a production of less than €650,00 must do so every quarter.
- Open a bank account
The next step is opening a bank account separately for business and depositing the capital amount. The bank may require to see the personal documents of the owner and financial statements of the business before setting up an account.
- Register the company
Now that you’ve decided on a name for your organization, it’s time to incorporate it by approving the act of incorporation. This costs about €360 and takes 1 to 2 days to complete. Your company will be assigned a tax identification number and a social security number. The act contains specific details about your corporate, such as the sort of industry. To register you must also submit the required documents to the registrar.
Documents required
The following are the documents required to register the corporation in Portugal:
- Owner’s passport;
- Owner personal details including name and address;
- Business locations;
- Tax number;
- Bank statements; and
- Proof of capital amount submission.
