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Ease of Doing Business in

Portugal

Portugal Download Profile (1743.9KB, pdf)
Region OECD high income
Income Category High income
Population 10,348,648
GNI Per Capita (US$) 20,530
City covered Lisbon

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 25 24 down
1
77.40 77.12 down
0.28
Starting a Business 32 31 down
1
92.85 92.84 up
0.01
Dealing with Construction Permits 35 34 down
1
76.47 76.42 up
0.05
Getting Electricity 50 50
-
80.72 80.06 up
0.66
Registering Property 27 26 down
1
80.26 80.26
-
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 38 46 up
8
83.75 82.12 up
1.63
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 19 19
-
73.01 73.01
-
Resolving Insolvency 7 8 up
1
85.24 84.79 up
0.45

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 32

DB 2016 Rank: 31

Change in Rank: down1

DB 2017 DTF (% points): 92.85

DB 2016 DTF (% points): 92.84

Change in DTF (% points): up0.01

Standardized Company
Legal form: Sociedade por Quotas
Paid-in minimum capital requirement: EUR 5
City: Lisbon
Indicator Portugal OECD high income
Procedure – Men (number) info_outline 5.0 4.8
Time – Men (days) info_outline 4.5 8.3
Cost – Men (% of income per capita) info_outline 2.1 3.1
Procedure – Women (number) info_outline 5.0 4.8
Time – Women (days) info_outline 4.5 8.3
Cost – Women (% of income per capita) info_outline 2.1 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Register at the one-stop shop

    Agency: One stop-shop

    There are two ways of starting a business in Portugal:

    1) "On the Spot Firm" (Empresa na Hora). This is currently the most common way to register a business. This service enables to set up a company in less than an hour at a single contact point.
    As long as the partners have all of necessary documents, the company is set up immediately at one of the desks of the On the Spot Firm offices, available throughout the country, regardless of the location of the company’s headquarters.

    The first step is to choose a name from the list of pre-approved names available at the website On the Spot Firm or to submit a name of its choice to the RNPC, which will issue a company's name certificate. This certificate of approval may be requested online, is valid for 90 days and may be renewed only once. If the name of the company is composed by the name of its shareholders, it may now be approved at the moment of incorporation of the company at the one-stop shop (ex. James & Smith).

    Then entrepreneurs need to choose one of the pre-approved standard memorandum and articles of association packs, available at On the Spot Firm and in the portfolio of packs available at the desks.

    The following documentation needs to be submitted at the On the Spot Firm’s desk:
    In case partners are legal enterprises/corporations:
    - Corporate tax identification or identity card;
    - Current extract of the entry in the Commercial Registry; and,
    - Minutes of the Inaugural Meeting of incorporation.

    At the service desk, it is possible to get both the articles of association and commercial registration. Partners will receive a certificate of incorporation, the corporate identification card, the Social Security number, the deed, and a business registration certificate.

    2) "Online company setting up” (Empresa Online):
    This service enables to set up a company through the Internet in 1 to 2 days. The access to the service On-Line Company (‘Empresa Online’) can be made through the Business Portal (www.portaldaempresa.pt).

    The costs are the following:
    Incorporation under "Empresa na Hora": EUR 360;
    Incorporation under ""Empresa on-line"": (i) EUR 360 if not incorporated with pre-approved by-laws, or (ii) EUR 220 if incorporated with pre-approved by-laws.
    1 day EUR 360 or EUR 220
    2

    Open a bank account and obtain a Bank Identification Number (BIN)

    Agency: Bank

    Business founders must open a bank account and obtain a Bank Identification Number BIN (“NIB - Número de Identificação Bancária”).
    1 day no charge
    3

    File the declaration of commencement of activity with the Tax Authority and register for VAT

    Agency: Tax Authority

    The declaration of commencement of activity has to be submitted at the Tax Authorities’ Offices along with evidence that the company was incorporated. Business founders must provide the Tax Authority with their Bank Identification Number (“NIB - Número de Identificação Bancária”) and their corporate identification card.

    Companies must also register for VAT if their sales exceed the turnover threshold of EUR 10,000. VAT registration can be done when submitting the declaration of commencement of activity.
    1 day no charge
    4

    Register with the Social Security Regional Center

    Agency: Social Security Regional Center

    The employers shall communicate the admission of employees to the Portuguese Social Security services of the area of the employee's workplace, by any written means, or online at www.seg-social.pt, within (i) 24 hours preceding the employment agreement’s entry into force; or (ii) 24 hours following the beginning of the activity, whenever – due to exceptional and duly justified reasons in connection with the conclusion of very short term employment agreements or due to shift work – such notice cannot be served within the set out deadline.

    The non-compliance with this obligation implies the assumption that the relevant employee started to work for the company on the 1st working day of the sixth month prior to the occurrence of the infringement. In case the relevant employee is receiving sickness or unemployment benefits there is also an assumption that the employ started to work for the company on the date in which those benefits were granted, whereby the company will be severally liable for returning the whole amounts unduly received by the employee by the Portuguese Social Security. Moreover, the non-compliance with the above mentioned obligation may result in a minor or a serious misdemeanor, depending on its compliance within 24 hours after the deadline or after that, corresponding to a fine from € 75 up to € 4,800. Pursuant to the enacted Law No. 83-C/2013, of 31 December 2013, the above mentioned communication will now have to be mandatorily made online.
    Less than one day (online procedure) no charge
    5

    Register for the workmen's accident compensation insurance at a private insurer

    Agency: Private Insurer

    The workers’ compensation insurance covers all workers and managers who receive a salary. The insurance is underwritten by a private insurer carrier and according to new regulations, it can be done after the company starts business activities. Note that social security insurance does not cover occupational accident or injury.
    1 day no charge