How to Open a Company in Portugal: Complete 2026 Guide
Portugal has become one of Europe's most attractive destinations for entrepreneurs and foreign investors. Setting up a company here is faster than many expect — a standard Lda (the Portuguese equivalent of a Limited Liability Company) can be incorporated in as little as one business day. This guide walks you through every step of the process in 2026.
1. Choose the Right Legal Structure
Before registering, you need to decide on the legal form. For most SMEs and startups, the choice is between:
- Lda (Sociedade por Quotas) — The default for SMEs. Minimum share capital of €1 (€2 if two shareholders). Liability limited to company assets. Can have one or more shareholders.
- SA (Sociedade Anónima) — Required for companies raising capital from the public or with more than 5 shareholders. Minimum share capital €50,000. More complex governance requirements.
- ENI (Empresário em Nome Individual) — Sole trader registration. No separate legal entity, unlimited personal liability. Simpler accounting obligations but higher risk exposure.
- Unipessoal Lda — A single-shareholder Lda. Combines limited liability with simple one-person ownership. The most common structure for solo entrepreneurs.
For most foreign founders, a Unipessoal Lda or a standard Lda is the right choice.
2. Obtain a Portuguese NIF (Tax Identification Number)
Every founder and director of a Portuguese company must have a NIF — Portugal's individual tax identification number. Without a NIF, you cannot sign company documents, open a bank account, or appear as a director.
- EU citizens: Apply in person at any Finanças (tax authority) office or Loja do Cidadão. Takes 1–2 days.
- Non-EU citizens: You need a Portuguese tax representative if you are not yet resident. HVR acts as NIF representative for international clients.
See our full guide: How to Get a NIF in Portugal as a Non-Resident →
3. Reserve a Company Name
Your company name must be unique in Portugal. Reserve it through the RNPC online portal (Registo Nacional de Pessoas Colectivas). The reservation costs €75 and is valid for 3 months. Alternatively, you can choose a pre-approved name from the official list, which speeds up the "Empresa na Hora" process.
4. Draft the Articles of Association (Pacto Social)
The articles of association define the company's name, registered address, objects (business activity), share capital structure, and management rules. For a standard Lda, you can use a model deed (contrato standard) provided by IRN, which significantly simplifies the process.
If your company has specific governance requirements — multiple shareholders, special voting rights, or restrictions on share transfer — a customised deed drafted by a lawyer or notary is advisable.
5. Register at the IRN (Empresa na Hora)
The fastest way to incorporate is through Empresa na Hora ("Company in an Hour") at an IRN (Instituto dos Registos e do Notariado) desk. You can also register online via ePortugal.gov.pt.
Documents required:
- Valid ID (passport or national ID card) for all shareholders and directors
- NIF of all founders
- Proof of registered address (can be a residential address or a virtual office)
- Chosen company name or pre-approved name certificate
- Signed articles of association (or model deed selection)
Cost: approximately €360 for online registration; €460–€500 at an IRN desk. The company receives a NIPC (company tax number) and is registered in the Commercial Registry.
6. Appoint a Certified Accountant
Portuguese law requires every commercial company to have a Contabilista Certificado (OCC-licensed Certified Accountant) from the moment of incorporation. Your accountant will:
- Register the company for VAT (IVA) with the tax authority
- Set up payroll and social security obligations
- Manage monthly bookkeeping and SAF-T submissions
- Prepare and file annual accounts and Modelo 22 (corporate tax return)
- Advise on tax optimisation within the legal framework
At HVR, we take care of this from day one. Contact us for a free consultation →
7. Open a Business Bank Account
A Portuguese company must have a dedicated business bank account. Most Portuguese banks (Millennium BCP, Caixa Geral, Novo Banco, Santander) require in-person visits for non-residents. Digital alternatives like Revolut Business or Wise Business are accepted by Portuguese authorities as long as the IBAN is listed on invoices.
8. Register for VAT and Start Invoicing
Your accountant registers the company for IVA (VAT) with the Autoridade Tributária. The standard rate is 23% (13% for restaurants, 6% for essential goods). Once registered, you must use certified invoicing software (software de faturação certificado) and submit monthly SAF-T files by the 20th of the following month.
Companies under €14,500 annual turnover may apply for the small business VAT exemption under Art. 53 CIVA.
Key Ongoing Tax Obligations
| Tax | Rate | Due date |
|---|---|---|
| IRC (Corporate income tax) | 21% (17% on first €25k for SMEs) | Modelo 22: May/June annually |
| IVA (VAT) | 23% standard | Monthly/quarterly return |
| TSU (Social security — employer) | 23.75% of gross salary | Monthly, by 20th |
| IRS Retenção na Fonte | Varies (25% green receipts standard) | Monthly |
| Derrama municipal | Up to 1.5% of taxable profit | With Modelo 22 |
Frequently Asked Questions
What is the most common company type in Portugal?
The Lda (Sociedade por Quotas) is the most common legal form for SMEs in Portugal. It requires a minimum share capital of €1, limits liability to company assets, and can be set up with one or more shareholders.
How long does it take to open a company in Portugal?
Using the "Empresa na Hora" service at an IRN desk, a standard Lda can be incorporated in 1–2 business days. Online incorporation via ePortugal typically takes 3–5 business days.
Can a foreigner open a company in Portugal?
Yes. Foreigners can fully own and manage a Portuguese company. Non-EU founders need a Portuguese NIF and, for long-term management, a residence permit or legal representation.
Do I need a certified accountant to run a company in Portugal?
Yes. All commercial companies registered in Portugal are legally required to have a licensed Certified Accountant (Contabilista Certificado, OCC member) to sign the accounts and submit tax returns.
What taxes does a Portuguese company pay?
Portuguese companies pay IRC at 21% (17% on the first €25,000 for qualifying SMEs), VAT (IVA) at 23% on most goods and services, and TSU (social security) at 23.75% on gross employee salaries.
Ready to Set Up Your Company in Portugal?
HVR Business Consulting handles the full company setup process for Portuguese and international clients — from NIF registration and company incorporation to ongoing accounting and tax compliance.