Company formation in Portugal

Who handles company formation in Portugal

Three kinds of firm do this work for foreign clients:

• Accounting firms. They form the company and then keep its books, file VAT and payroll, and sign the annual returns through a certified accountant (contabilista certificado). For a small company, this is often the relationship that lasts.
• Law firms and solicitors. Lawyers and solicitors can file an online incorporation with their professional digital certificate. They draft custom articles and shareholder agreements and handle structures with several foreign shareholders or a parent company abroad.
• Corporate service providers. They package formation with a registered address, company secretarial work and help with the bank, often for founders who are not in Portugal.

Of the 90 formation providers on Accountanty, 66 are accounting firms, 11 are law firms and 13 are corporate service providers. Most (66) are small firms; 18 are medium-sized and 6 belong to large networks. For a single-member Lda with standard articles, an accounting firm usually covers everything. Bring in a lawyer when the shareholder arrangements, the funding or the group structure need tailored documents.

What a formation provider does for you

A full-service provider usually runs company formation in Portugal from tax number to first invoice:

1. Tax numbers. It obtains a Portuguese NIF for each foreign shareholder. For residents outside the EU and EEA, the tax authority requires a representative in Portugal or an electronic notification channel; ask whether the firm can act as that representative.
2. Route and name. It advises whether to use an Empresa na Hora counter or Empresa Online, and whether a pre-approved name will do or a name certificate is needed.
3. Articles and filing. It drafts or selects the articles and files the incorporation. On Empresa Online, a lawyer, notary or solicitor can file with a professional digital certificate, so you sign a power of attorney instead of travelling.
4. Bank and capital. It introduces you to a bank that accepts non-resident owners, prepares the documents for its checks and tracks the deadline to deposit the capital, 5 working days after incorporation unless paid at creation.
5. Beneficial owners. It files the RCBE declaration within the 30 days allowed.
6. Tax start. It files the start-of-activity declaration, sets up VAT and registers the company and its staff with Social Security if you hire.

Ask early whether the provider will file online or send someone to a counter on your behalf. That choice decides whether you need to travel, which documents must be signed digitally and how long the registry review takes.

What the provider needs from you

Have these ready before you ask for quotes, and a provider can give you a firm price and timetable:

• Identity documents for every shareholder: a passport or residence permit for individuals. A company shareholder also needs its home-country registration certificate and current articles, and a Portuguese NIPC to use the online route.
• Each shareholder’s NIF, or a mandate for the provider to obtain it.
• Name ideas, in order of preference, or agreement to start with a pre-approved name.
• The capital you plan to put in, and whether anything other than cash goes in. In-kind contributions cannot be filed online.
• A short description of the business, so the articles state the right object and the provider picks the right activity code (CAE).
• Who will manage the company (the gerentes) and where the registered office will be.
• The ownership chain up to the people who ultimately own or control the company, for the RCBE.

Documents issued abroad may need legalisation and a certified translation into Portuguese. Ask the provider which ones before you order anything, so you only pay for what the registry and the bank will actually ask for.

What a company formation quote should include

Ask for a written quote that separates the provider’s own fee from the costs it pays on your behalf. A clear quote lists:

• The provider’s fee, and exactly which of the six steps above it covers.
• Registry fees, at cost. At an Empresa na Hora counter the standard fee is 360 euros. Online, it is 220 euros with pre-approved articles or 360 euros with your own, and double for urgent requests.
• The NIF and tax representation for each non-resident shareholder, and how long the representation lasts.
• Translations and legalisation of documents from abroad.
• The registered office, if the provider supplies an address. Accountanty lists firms offering a virtual office in Portugal.
• The first year of accounting, priced separately so you can compare like with like.

Prices vary with the number of shareholders, whether a shareholder is a company, and whether anyone needs a NIF or a representative. Of the 90 providers on Accountanty, 19 publish some of their prices; for the others, a written quote is the only way to compare.

How to choose a company formation provider in Portugal

Look past the incorporation fee. Forming the company happens once. Bookkeeping, VAT returns, the IRC return due by the last day of May and the annual IES due by 15 July come round every year. Of the 90 formation providers on Accountanty, 77 also offer accounting and 66 offer payroll, so ask for the ongoing price at the same time.

Check for a certified accountant. Signing a Portuguese company’s financial statements and tax returns is a reserved act of a contabilista certificado registered with the Ordem dos Contabilistas Certificados (OCC). Ask who on the team holds that registration and will sign your returns. Firms on Accountanty also name memberships of the Portuguese Bar Association and the Portuguese Solicitors Association; ask which body the person handling your file belongs to.

Check the language. Of the 90 providers, 65 state they work in English, 20 in French, 16 in Spanish, 3 in German and 3 in Russian. Your articles and filings will be in Portuguese, so you need someone who explains them in your language.

Ask about foreign clients. 55 formation providers say they focus on foreign clients. Ask how many non-resident founders they set up each year, how they handle the NIF and the bank when you are abroad, and whether they act as tax representative. Our list of accountants for foreign clients in Portugal narrows the search.

Match the place. Pick a firm near where the company will operate if you expect to meet them, rent premises or hire staff. Accountanty lists formation providers in Lisbon (34), Porto (28) and Funchal (12), with firms also in Faro, Almancil and Albufeira. Madeira sets its own reduced VAT rates, so a company based in Funchal is easier to run with a firm that knows the island’s rules.

Check what comes after. If you are moving to Portugal, ask whether the firm handles residency and visas; 33 formation providers on Accountanty list it. For the bank, 27 list bank account assistance, and 31 offer corporate secretarial work such as minutes and changes at the registry.

Warning signs when you compare offers

A low headline price can hide the work that matters to a non-resident owner. Read each offer for these gaps:

• No named certified accountant. If the quote covers incorporation only and says nothing about who will sign the accounts and returns, you will be looking for a second firm within months.
• Registry fees bundled into one figure. The registry publishes its fees, so a provider can show them separately. A single lump sum makes it hard to see what the provider itself charges.
• Silence on the NIF and representation. For owners outside the EU and EEA, tax representation is a standing arrangement, not a one-off task. Ask what it costs per year and how to end it.
• A route that does not fit you. An offer built around an Empresa na Hora appointment assumes every partner can be at the counter. If one of you is abroad, ask for the online route instead.
• Vague timelines. A provider that promises a date before the bank has seen your documents is guessing. Ask which steps it controls and which depend on the bank or the registry.

Ask each provider to fix these gaps in writing before you sign. A firm that answers clearly at this stage usually answers clearly when the first VAT return is due.

Getting quotes for company formation in Portugal

Send the same brief to two or three providers and compare their written quotes line by line, including the first year of accounting and any tax representation. A provider that asks about your shareholders, your bank and your activity code before quoting is one that will spot problems before the registry does.

For company formation in Portugal without contacting each firm yourself, send one free quote request through Accountanty. Once we have checked it, the request goes to firms that suit your needs, and they answer with their own terms.