Starting a business
How to open a company (Lda) in Portugal
Opening a Portuguese company takes a day and can cost €220. The work is in what comes after: the accountant, the bank, the filings and how you pay yourself.
In short
- A Unipessoal Lda (one owner) or Lda (two or more) is the usual company for freelancers and founders.
- Share capital can be as low as €1 per partner.
- Incorporation costs €360 in person (Empresa na Hora) or from €220 online (Empresa Online).
- From day one the company needs a Certified Accountant, monthly bookkeeping and yearly filings.
Before you incorporate
- A NIF for every partner and manager. See the NIF guide.
- A company name. With Empresa na Hora you pick from a list of pre-approved names; a name of your own needs a certificate of admissibility first.
- A registered address in Portugal: your home, an office or a domiciliation service.
- The business activity codes (CAE) that describe what the company does. They matter for VAT and, for some founders, for IFICI.
- Who will be manager (gerente) and whether they will be paid.
Two ways to incorporate
| Empresa na Hora | Empresa Online | |
|---|---|---|
| Where | In person at a registry office or Loja do Cidadão | Online, on the Portal da Empresa |
| Cost | €360 | €220 with a standard pact, €360 with your own |
| Time | Usually the same day | A few working days |
| What you need | ID documents for all partners present, or a representative with a power of attorney | A Portuguese digital signature (Citizen Card or Chave Móvel Digital) for every partner |
If you are not in Portugal yet, a lawyer can incorporate for you with a power of attorney. We work with partners who do this.
The first 30 days
| Step | When |
|---|---|
| Appoint a Certified Accountant and file the start of activity with the tax office | At incorporation, or within 15 days |
| Open the company bank account and pay in the share capital | Capital can be paid in up to the end of the first financial year |
| Declare the beneficial owners (RCBE) | Within 30 days |
| Register with Social Security as an employer, if anyone is paid a salary | Before the first payroll |
| Set up certified invoicing software | Before the first invoice |
Running costs and filings
- Accounting: organised accounts by a Certified Accountant are compulsory, whatever the size of the business.
- VAT returns: monthly or quarterly, depending on turnover.
- Corporate tax (IRC): 15% on the first €50,000 of profit for SMEs and 19% above, plus a municipal surcharge of up to 1.5%. The return (Modelo 22) is due by the end of May.
- Annual accounts (IES): filed by mid-July.
- Beneficial owner register: confirm it once a year, and update it whenever partners change.
Paying yourself
| Option | How it is taxed |
|---|---|
| Manager's salary | IRS at progressive rates (or 20% under IFICI); Social Security of 23.75% paid by the company plus 11% by you |
| Dividends | 28% withheld, after the company has paid IRC on its profit |
| Expenses for the business | Deductible for the company when supported by invoices in its name |
A manager who is not paid does not owe Social Security on that role. The right mix of salary and dividends depends on your profit and on whether IFICI applies, so it is worth modelling before the first payroll.
Frequently asked questions
How much does it cost to open a Lda in Portugal?
€360 in person through Empresa na Hora, or from €220 online through Empresa Online with a standard pact.
What is the minimum share capital?
€1 per partner.
Can I open a Portuguese company from abroad?
Yes, through a lawyer acting with a power of attorney. Empresa Online needs a Portuguese digital signature for every partner.
Does a Portuguese company need an accountant?
Yes. Organised accounts by a Certified Accountant are compulsory from the first day.
Ask a specialist
Tell us where you are in the move. A Certified Accountant replies within two working days. Questions about visas, housing or insurance go to a vetted partner, only with your OK.