How to start a company in Portugal: 2025 guide

Portugal has become one of the favorite destinations for entrepreneurs and companies looking to expand within the European Union. Its clear tax system, more simplicity for the creation of companies and quality of life make this country an ideal option to establish a business.

If you are considering setting up a company in Portugal, from CE Consulting Portugal we explain you all the key steps, advantages and the best time to do it.

How to create a company in Portugal?

Taking your business to Portugal it is something different, compared to the process to create a company in Portugal which is different and relatively simple if you follow the right steps. Here’s how to do it:

1. Define the type of company

Before starting the process, it is crucial to choose the right legal structure. The most common options are:

Sociedade por Quotas (LDA): Avec une ou plusieurs personnes physiques.
Sociedade Anónima (SA): Il nécessite un capital minimum plus élevé et est idéal pour certains secteurs d’activité.
Empresario Individual: Pour les petites affaires sans partenaires.
Sucursal o filial: Si vous avez déjà une entreprise dans quelque pays et que vous souhaitez vous développer.

2. Obtain the Portuguese NIF

To operate in Portugal, partners will need a Número de Identificação Fiscal (NIF), obtained from the Portuguese Tax Authority in the case of natural persons, or from the Commercial Registry, in the case of legal persons.

3. Choosing a name for the company

The name can be chosen in one of 3 possible ways:

One from the list of pre-approved names.
Request a custom name.
Put the name / surname of the member(s).

4. Define the company's registered office

The headquarters must be at an address in Portugal, be it an office, a warehouse, or even a coworking / virtual office (to be hired with the accurate company).

Once these steps have been completed, and other information has been gathered, the contract and statutes must be signed.

5. Open a business bank account

After legally constituted, it is necessary to open a bank account for the company at a bank office in Portugal where the share capital is deposited and transactions are managed.

6. Registration with the Treasury and Social Security

Once registered, and with a bank account, the company must register with the Tax Authority and with the Social Security to comply with tax and labor obligations.

Why set up a company in Portugal?

Portugal has become an attractive business hub within the European Union. Some of the main reasons to consider this country are:

Interesting Corporate Tax: The types of corporate tax in Portugal they are 16% for the first €50,000 of profits and 20% for higher profits, with reductions on the islands. Find out more about the taxes in Portugal.
Ease of procedures: The process of starting a business is simplified.
Competitive operating costs: Salaries and commercial rents lower than the average for European Union countries.
Access to international markets: EU membership and trade agreements with various countries.
Quality of life: Safety, good weather and an international community of entrepreneurs.

Advantages of setting up a company in Portugal

If you are an entrepreneur in Spain and you are considering expanding to Portugal, these are some of the main advantages:

Quick access to the Portuguese market: Geographical proximity facilitates logistics and business operations.
Less bureaucracy: Compared to other European countries, Portugal offers more agile business procedures.

When is the best time to set up a company in Portugal?

Creating a company in Portugal is a strategic opportunity for those entrepreneurs and businessmen looking for a business-friendly environment within the European Union.

With attractive taxation, a simple registration process, and a growing economy, Portugal has become an ideal destination for business expansion.

If you’re thinking about expanding your business to Portugal, it’s important to decide on the right time to expand. There are strategic moments when it can be more beneficial, for example:

Interesting Corporate Tax: The types of corporate tax in Portugal they are 16% for the first €50,000 of profits and 20% for higher profits, with reductions on the islands. Find out more about the taxes in Portugal.
Ease of procedures: The process of starting a business is simplified.
Competitive operating costs: Salaries and commercial rents lower than the average for European Union countries.
Access to international markets: EU membership and trade agreements with various countries.
Quality of life: Safety, good weather and an international community of entrepreneurs.

In conclusion, creating a company in Portugal in 2025 is a strategic option for entrepreneurs and companies looking to expand within the European Union.

However, to maximize success, it’s key to choose one consultancy for companies in Portugal to know the right time, to know the legal and tax obligations, and to have professional advice.

With the right planning, settling in Portugal can be a profitable decision with great future projection.

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