Register a Company in Portugal as a Foreign Founder

Portugal has spent the last decade building one of Europe's most attractive environments for international founders. It sits inside the EU, its digital infrastructure is improving, its quality of life is high relative to cost, and its company registration process is one of the fastest in Europe; you can have a legal entity up and running in one to three business days. Nearly 33,000 new businesses were registered in Portugal in the first half of 2025 alone, and a growing share of those founders came from outside the country.

For international entrepreneurs, Portugal offers access to EU markets, a competitive corporate tax rate, a replaced but still relevant special tax regime for qualifying new residents, and an increasingly friendly startup ecosystem backed by Startup Portugal, the government's dedicated programme for early-stage companies.

Why Founders Choose Portugal

• Company registration possible in one to three days through the Empresa na Hora or Empresa Online portal
• Corporate tax (IRC) at 20% standard rate, with a reduced 15% rate on the first €50,000 of profit for SMEs
• Access to the EU single market and a network of 79 double taxation treaties
• The IFICI regime (successor to the NHR) offers a 20% flat rate on qualifying Portuguese income for eligible new residents for 10 years
• A growing startup ecosystem with government-backed programmes including Startup Visa and the Startup Portugal+ initiative

The Main Business Structure: Sociedade por Quotas (Lda)

The Sociedade por Quotas, known as Lda, is a Portuguese private limited liability company and the structure of choice for the vast majority of foreign founders. It is a separate legal entity with liability limited to the share capital contributed. The minimum share capital is just €2, though most founders register with €1,000 or more to appear credible to banks and partners.

If there is only one founder, the structure is called a Sociedade Unipessoal por Quotas (a single-member Lda). The name must end with "Unipessoal Lda" to reflect this.

Other structures exist, Sociedade Anónima (SA) for larger companies planning to raise public capital (minimum €50,000 share capital), partnerships, and branches of foreign companies, but the Lda is the right choice for most foreign founders.

Before You Start: Get a NIF

Every foreign individual involved in a Portuguese company, as a shareholder or director, must obtain a NIF (Número de Identificação Fiscal), Portugal's individual tax identification number. It is required for all official financial and legal activities in the country: opening a bank account, signing documents, and registering a business.

EU/EEA citizens can obtain a NIF in person at any local tax office (Finanças) with their ID or passport.

Non-EU nationals must appoint a Portuguese tax representative and provide passport information. The tax representative can apply for the NIF on their behalf. Many law firms and accountancy firms offer this service.

Processing a NIF typically takes a few days to two weeks, depending on the route.

Step-by-Step: How to Register an LDA in Portugal

Step 1: Choose your company name

You can either select a name from the list of pre-approved names maintained by the government (which speeds up the process) or choose a unique name and request a Certificado de Admissibilidade de Firma, a certificate confirming your chosen name is available and legally acceptable. Name certificates are issued by the IRN (Instituto dos Registos e do Notariado) and are valid for 3 months.

Step 2: Register via Empresa na Hora or Empresa Online

Portugal offers two main digital registration pathways:

Empresa na Hora ("Company in an Hour"): Available at participating Conservatórias do Registo Comercial (commercial registry offices) across the country. You attend in person, sign the incorporation deed on-site, and the company is registered the same day. It requires at least one of the founders to be physically present with a valid ID.

Empresa Online 2.0: A fully digital route via the official government portal that allows non-resident founders to register remotely. All founders must have their NIF and electronic signature capability. The process typically takes one to three business days.

Both routes require you to define: the company name, registered office address in Portugal, business activity codes (CAE codes under the new CAE Rev. 4 system introduced in 2025), share capital, and the identity of all shareholders and the designated manager (gerente).

Step 3: Obtain a NIPC (Corporate NIF)

At the point of incorporation, the company is assigned a NIPC (Número de Identificação de Pessoa Coletiva), the company's own tax identification number. This is used for all tax filings, banking, and official correspondence.

Step 4: Register for taxes with the Portuguese Tax Authority (AT)

Following incorporation, the company must be registered with the Autoridade Tributária e Aduaneira (AT) for corporate income tax (IRC) and, if applicable, VAT (IVA). This is done through the Portal das Finanças.

VAT registration is mandatory once annual turnover exceeds €15,000 in most sectors (the threshold for service businesses). The standard VAT rate in Portugal is 23% (reduced rates of 13% and 6% apply to specific categories).

Step 5: Appoint a certified accountant (TOC)

All Portuguese companies are legally required to have a Técnico Oficial de Contas (TOC), a certified public accountant, on record with the AT from the moment business begins. The TOC is responsible for the company's accounting and tax submissions. You cannot file Portuguese corporate tax returns without one. Monthly accountancy fees for a simple structure typically range from €100 to €300 per month.

Step 6: Open a corporate bank account

A Portuguese business bank account is required for day-to-day operations and to receive client payments. Traditional banks (Millennium BCP, Caixa Geral de Depósitos, Novobanco) generally require founders to appear in person. Non-resident founders may face additional compliance checks, expect requests for proof of business activity, source of funds, and a business plan.

Digital banking alternatives (Revolut Business, Wise, N26 Business) can serve as practical supplements, particularly in the early months, but a traditional Portuguese corporate account is advisable for VAT purposes and supplier relationships.

The Tax Landscape in 2026

Corporate income tax (IRC): The standard rate is 20% (reduced from 21%, following the OE2025 budget). SMEs benefit from a reduced rate of 15% on the first €50,000 of taxable profit. A municipal surcharge (Derrama) of up to 1.5% applies on taxable profit, charged by the municipality where the registered office is located.

The IFICI regime (NHR 2.0): Portugal's original Non-Habitual Resident (NHR) regime closed to new applicants in December 2023. It was replaced by the IFICI (Tax Incentive for Scientific Research and Innovation) regime. Qualifying new residents receive a flat 20% tax rate on Portuguese employment and self-employment income in qualifying activities, primarily technology, scientific research, and highly skilled roles in strategic sectors, for 10 years. Foreign pension income is taxed at 10% for existing NHR holders; IFICI rules differ. Entrepreneurs and employees of certified startups may qualify. Not everyone who qualified for the old NHR will qualify for IFICI, so verify eligibility before planning around it.

Capital gains: 28% on most gains; gains on the sale of shares in Portuguese companies are generally taxable.

Visas for Founders Who Want to Relocate

If you intend to live and operate your business in Portugal:

• D2 Entrepreneur Visa: The primary route for non-EU nationals planning to start a business. Requires a business plan submitted to a Portuguese consulate in your home country.
• Startup Visa: Designed for innovative and high-growth ventures. Requires prior approval from a certified incubator partner.
• EU/EEA citizens do not need a visa and can operate freely.

What to Verify Before You Proceed

Always verify requirements with the IRN, the Portuguese Tax Authority, and a qualified Portuguese lawyer or certified accountant (TOC) before committing. Tax rates, thresholds, and the IFICI regime criteria are subject to change.