Portugal's business environment is diverse and welcoming, offering a variety of legal structures to meet different entrepreneurial needs.
[Type of company registration in Portugal].
There are mainly the following types of companies in Portugal.
1. Single-member liability company.
If you're a solopreneur who prefers to be independent, this is the one for you. It allows you to have complete control over your business decisions while limiting your liability to the company's assets. This structure is especially beneficial for a sole proprietorship that you don't want to share ownership or decision-making power.
2. Individually-owned businesses.
This structure is ideal for freelancers, personal consultants, or professionals who provide professional services. The most significant advantage is that there is no minimum capital requirement for starting a business. However, it is important to note that your personal assets may be at risk, as liability is unlimited. This means that if the business incurs debt, you are personally responsible for the debt.
3. Individual limited liability institutions.
If you're looking for a middle ground between being self-employed and a more formal corporate structure, consider this option. It requires a minimum of €5,000 in capital but can provide the benefit of separating your personal assets from your business assets. This is especially useful for those who want to protect their personal assets, such as a home or savings, from any financial risks associated with their business.
4. Private ***
The structure is designed for businesses that plan to work with multiple partners and requires an investment of at least €5,000. One of its main benefits is that it allows for shared ownership and responsibility, making it easier to raise capital and diversify risk. Each partner's liability is limited to their share of the capital, thus providing additional financial protection.
5. The public ***
If you're thinking about building a bigger business or even going public in the future, this is the structure for you. It requires a minimum of five shareholders and a capital of at least €50,000. This structure is often chosen by businesses that require significant capital investment and plan to go public**. Its regulatory requirements are more complex, but it has the advantage of being more likely to attract investment.
【Portugal company registration requirements】
1. The registered capital of the company shall not be less than 5,000 euros;
2. The capital of a limited liability company shall be jointly contributed by multiple shareholders, and the shareholders shall bear obligations to the company within the limit of their capital contributions;
3. Shareholders shall bear corresponding responsibilities in accordance with the terms of establishment of the company;
4. The capital contribution of the shareholders shall not be less than 100 euros, that is, 2% of the lower registered capital;
5. The name of the limited liability company must be composed of the abbreviation or full name of all or some of the shareholders, and the word "LTD" in the name of the company.