Portugal

Starting a Business in

Portugal

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Sociedade por Quotas
  • City: Lisbon

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No. Procedure Time to Complete Associated Costs
1 Choose a pre-approved company name

Before requesting the corporate name, the company promoter can search the National Registry of Collective Entities (Registro Nacional de Pessoas Colectivas, RNPC) database (also via the Internet) for the availability of the requested name. The promoter can reserve a company name for 48 hours at a fee of EUR 31.

The RNPC issues a certificate of approval of the promoter’s company name or of the promoter’s choice of one of the preapproved names provided by the Portuguese authorities (the list is on the Internet). If the company decides not to use one of the preapproved company names, the company must obtain from the RNPC a certificate of approval and a provisional taxpayer card. A new search engine has expedited this procedure, which now takes about 4 days. The certificate is valid for 90 days and may be renewed only once.

The fee for company name approval is EUR 70:
- Certification of company name approval: EUR 56.
- Identity card (for collective person): EUR 14.
An additional fee of EUR 31 applies if a name reservation is requested.

The certificate of approval is valid for 3 months and may be renewed only once. The provisional taxpayer card can be requested at the same time as the corporate certificate.

 1 day included in procedure 2
2 Register at the one-stop shop

If the company does not select one of the preapproved company names, the promoter must submit the documents cited in Procedure 1.

To search a company name, incorporators may elect between three options a) submit a preapproved, registered name (as in the company one hour system); b) apply for a company name online; or c) file a certificate of name approval, obtained nonelectronically .

The online company registration system is accessible to lawyers, solicitors and notaries that own a digital certification that proves the user's profession.
Administrative Rule 1416-A/2006 sets out two other stipulations:
(1) The applicant’s option of applying for commercial registration online is contingent on appropriate electronic certification.
(2) The availability of information online must always be updated. Upon request, a password is sent that allows the applicant company or any other public or private entity (to whom the password is disclosed) to see the certificate online. The password is disclosed upon delivery of a hard copy certificate.

As of June 30, 2006, shareholders that choose to incorporate and register the company at the one-stop shop (using the new expedited system) can also acquire a registered trademark at the same time.
1 day EUR 360 or EUR 300 (depending on whether the company’s object is IT or IT related or not) at the one-stop shop and EUR 180 online (www.portaldaempresa.pt)
3 Register with the Social Security Regional Center

Employers must register employees for social security insurance in 10 working days after the tax declaration on start of business activities and at least 24 hours before employees start employment.
This procedure can be conducted at the at the Centros de Formalidades das Empresas (CFE). The employer must file the following documents: the taxpayer identification card, deeds, collective person's card, minutes of company inaugural meeting, a copy of the statutory members' tax cards, and a document proving the declaration of commencement of activity. Companies that have interaction with the public must have the company’s work schedule approved at the Ministry of Employment and Social Security (Ministerio do Emprego e da Segurança Social).

1 day no charge
4 Report to the Labor Inspectorate

Before starting its activity, the incorporated company must submit the following information to the Labour General Inspection: the company name and its tax number, its corporate activity, its registered office and other company locations, and the number of workers and managers. The company must also provide a copy of the published announcement of the incorporation deed.
Since mid-2008, entrepreneurs can file a declaration of commencement of operations at the one-stop shop and the Registry can forward it electronically to the new Work Inspection Agency (ACT - Autoridade para as Condições do Trabalho).
1 day no charge
5 Register for the workmen's accident compensation insurance at a 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. According to Decree-Law 14/2007, as of March 2007 an employee can be registered online on the social security site.
1 day no charge
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