Starting activity as a sole trader (ENI) in Portugal
A sole trader (ENI, empresário em nome individual) works for themselves, in their own name, without setting up a company. Starting activity usually involves identification, NIF, address, the activity you will carry out (CAE), the tax regime and Social Security enrolment. We explain each step in plain language and tell you what applies to your case.
What an ENI is
A sole trader (ENI, empresário em nome individual) is a person who carries out an activity for themselves, in their own name. There is no company separate from you: the business and the person are, legally, the same entity.
So, as a rule, you answer for the business debts with your personal assets and the income from the activity is taxed under personal income tax (IRS).
It is a common path for people who provide services, work as freelancers or start a small business and want to keep the structure simple.
What starting activity means
Starting activity (abrir atividade) means officially declaring that you will begin carrying out an activity for yourself. As a rule, this involves the following points:
Identification and NIF: your personal details and tax identification number.
Address: your tax address and, where there is one, the place where you carry out the activity.
Activity: what you will do, which matches an economic activity code (CAE). We help you find the right one.
Tax regime: the choice between the taxation and VAT (IVA) options the law allows in your case. We explain the differences in plain language and tell you what applies to you.
Social Security: enrolment as a self-employed worker is, as a rule, a step linked to starting activity. Rules and amounts change over time, so we tell you what applies to your case when you move forward.
Recibos verdes
"Recibos verdes" (green receipts) is the everyday term for the receipts a self-employed person issues when charging for their services. In practice, it is how a sole trader invoices their activity.
There are rules on how and when each document is issued, including the use of certified invoicing software, depending on the case. We tell you what applies to your case.
Simplified or organised accounting
A sole trader may be subject to simplified or organised accounting, depending on the tax regime and the activity. As a rule, organised accounting is more demanding and may mean having a chartered accountant.
We do not give limits or amounts here, because they depend on your case and change over time. We tell you what applies to you.
When it may be worth considering a company
Being a sole trader is simple to start, but liability is personal. It may be worth considering a single-member limited company (sociedade unipessoal por quotas) or a limited company (Lda) if you want to keep your personal assets separate from the business, if you will work with partners or if the activity carries a risk you want to limit.
How you are taxed and the formalities also change. There is no single best option for everyone: it depends on your case, and we help you compare.
What you usually need
The exact list depends on your case. As a rule, you will need:
- Identification: a valid ID document and your tax identification number (NIF).
- Address: your tax address and, where applicable, that of the place where you carry out the activity.
- Activity: the activity you will carry out and the matching economic activity code (CAE).
- Digital access: as a rule, communications are made digitally, with authentication (for example, Chave Móvel Digital or Tax Portal credentials).
- Information about the activity: the type of clients and how you expect to invoice, to help choose the right regime.
How the process works
Understand what you want
We talk to you about the activity and help you see whether being a sole trader makes sense in your case or whether a company is worth considering.
Gather the information
We tell you what is needed and organise the data and documents.
Choose the activity and regime
The right CAE is identified and the tax regime options that apply to your case are explained.
Start activity
The declaration is made with the competent authorities, by you or by a qualified professional. Some of these acts may be reserved to qualified professionals: we guide you and refer you to whoever can handle them.
First obligations
After starting activity there are initial steps, such as issuing receipts, tax and Social Security obligations and, where applicable, the accounting. We tell you what to do and when.
Who does what
On your side
- Tell us what activity you want to carry out.
- Provide your details and documents.
- Confirm the decisions and authenticate or sign what you are asked to.
On our side
- Explain the options in plain language.
- Tell you what to gather and organise the information.
- Guide each stage and refer what requires qualified professionals.
- Support you until your activity is up and running.