How to start a company in Portugal, without the hassle

The main options

Sole trader (ENI, empresário em nome individual): you work in your own name, without creating an entity separate from yourself. As a rule, you answer for the business debts with your personal assets and your income is taxed under personal income tax (IRS).

Single-member limited company (sociedade unipessoal por quotas): a company with one owner, which is an entity distinct from you. As a rule, the owner's liability is limited to what was invested in the company and profits are taxed under corporate income tax (IRC).

Limited company (Lda, sociedade por quotas): works like the previous one, but with two or more partners. As a rule, the same logic of limited liability and corporate tax applies, with rules to be agreed between the partners.

What changes from one option to another

Liability: in a company, the company's assets and your personal assets are, as a rule, kept separate. As a sole trader, they are not.

Taxes: the type of tax (IRS or IRC) and how it is calculated change with the structure you choose. Rules and amounts change over time, so we do not list them here: we tell you what applies to your case when you move forward.

Organisation: a company usually has more formalities for setting up and running than a sole trader.

There is no single best option for everyone. The choice depends on your case: your activity, working alone or with partners, the risk you want to take and what you expect to invoice. We guide that choice with you.

What you usually need

The exact list depends on the structure you choose and on your case. As a rule, you will need:

• Identification: a valid ID document and the tax identification number (NIF) of each person who will be the sole trader or a partner.
• Address: your address and the company's address.
• Activity: the activity you will carry out, which matches an economic activity code (CAE). We help you find the right one.
• Company name: for a company, the name must be approved and cannot match another company's name.
• Share capital: for a company, the amount the partners commit to invest. The amount and how it is paid in depend on the type of company and the law in force.
• Partners and managers: the details of all partners, of whoever manages the company and of whoever ultimately owns or controls it.

How the process works

1. 1

   Understand what you want

   We talk to you about your project and explain the options so you can choose the structure that makes sense in your case.

2. 2

   Gather the information

   We tell you what is needed and organise the data and documents.

3. 3

   Define name and activity

   The company name is chosen, where applicable, along with the activity to register.

4. 4

   Set up the company or start activity

   Registration is done with the competent authorities. Some of these acts are reserved to qualified professionals: we guide you and refer you to whoever can handle them.

5. 5

   First obligations

   After registration there are initial steps, such as tax and Social Security obligations and, where applicable, the accounting. We tell you what to do and when.

Frequently asked questions