The NIF (Tax Identification Number) is a unique number assigned by the Portuguese Tax and Customs Authority (AT) that identifies individuals and legal entities for tax purposes. This number is mandatory for financial transactions, contracts, and interactions with government agencies. Anyone, regardless of nationality, can apply for a NIF.

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The share capital and the timing of its payment must be defined, as well as the company’s legal structure (Limited Liability Company, Single-Member Joint Stock Company, Public Limited Liability Company, etc.). An appropriate amount is recommended for the start of the activity.

Suggested initial capital for a collective company varies between €5,000 and €50,000.

The company must define its tax address, that is, its registered office. Documentary proof is not required, but this address can be the address of a commercial establishment, a partner’s residence, a virtual office, etc.

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Partners and managers must present identification documents (Citizen Card or Passport). Additionally, the company’s management must be formally appointed, indicating who will be responsible for managing the business.

The articles of association are the legal document that formalizes the establishment of a commercial or civil corporation. It establishes the rules governing the company’s operations, the relationships between partners, the rights and duties of each partner, and operational and administrative aspects.

In simple terms, the social pact is a contract that defines:

• Company identification: Name (company name), headquarters, corporate purpose (activities that the company can carry out) and share capital.
• Corporate relations : Participation of each partner in the capital, distribution of profits, responsibilities and obligations.
• Operating rules : Administration, decision-making, meetings, transfer of shares or quotas, and procedures for dissolving the company.
• Other aspects : Duration of the partnership, rules for conflict resolution and any optional clauses that the partners wish to include.
• The social pact can be based on pre-approved models (such as those available through the “Empresa na Hora” service in Portugal) or prepared in a personalized manner, reflecting the specific needs of the partners.

Gather the necessary documents and draft pre-approved or custom Bylaws. The company must be registered with the Board of Trade and begin operations with the Federal Revenue Service, ensuring the company is ready to operate.

The acronym RCBE stands for Central Registry of Beneficial Owners and is a mandatory declaration that identifies the beneficial owners. Beneficial owners are those who control, through shareholdings or other means provided for in Article 30 of Law 83/2017 of August 18, a company, business entity, civil society, cooperative, association, foundation, fund, or trust. To prevent fraud, this declaration was created to make it mandatory to identify the beneficial owners of the organization. Beneficial owners must be registered within the legal period of 30 days after the company’s creation.

This declaration is required 30 days after commercial registration, that is, after a company has been created, and must be updated whenever there is any change in the information contained in this declaration. Penalties for non-compliance include, in addition to fines of up to €50,000, prohibition from competing for public service concessions or benefiting from European funding.

SME certification must be obtained by companies wishing to apply for monetary support from the European community, to benefit from certain tax benefits.

Please note that to access the Credit Lines made available by the government to support Portuguese companies, this certificate may be required.

A dedicated bank account for your company makes financial management easier and is mandatory for businesses.

Deposit the share capital in a Portuguese bank within 5 days of incorporation. You must use the business bank account to pay taxes to the state.

A certified public accountant must, within 15 days of the date of commercial registration, submit a declaration of commencement of business operations to the Federal Revenue Service. Therefore, a Certified Public Accountant must be appointed within a maximum of 15 days to ensure that all tax and accounting obligations are met from the start of the business.

• Proof of your current residential address
• a valid identity document (e.g. passport and residence card in an EU country, if applicable).
• A NIF (Portuguese Tax Identification Number). If you don’t have one yet, we’ll ask for one.
• Proof of Portuguese address for your company. If you don’t have one, we can help you secure a virtual address.
• If you live outside the European Union, you will also need a tax representative.

IRC
Corporate Income Tax) This is the “normal” corporate tax, levied on profits. The corporate income tax rate in Portugal is 20% and is paid annually.
For SMEs, the first €50,000 of profits is taxed at 16%, and the remainder at 20%.
This is a cost you will always incur from the moment your company shows profits.

VAT:
Companies pay VAT, but they can pay it through deductible expenses. Even so, ICMS must be submitted to the State monthly or quarterly. The amount is the difference between the input VAT and the actual VAT. As you know, VAT in Portugal varies depending on the type of goods or service and can have three rates: 23%, 13%, or 6%.

It’s important to emphasize that VAT isn’t actually a cost, as companies receive and remit VAT. It’s important to calculate the VAT you have to pay and plan your company’s cash flow.

Municipal surcharge
This is the tax on profits, the rate of which is set by the company’s municipality, but which cannot exceed 1.5%.

State surcharge
Only applicable to companies with profits exceeding R$1.5 million.

IMT
If real estate is transferred to the company’s sphere, at the time of its incorporation, this may imply the payment of ITBI.

Single Social Tax (TSU)
It is applied to each employee of the company, representing 23.75% of their gross salary.

If there are no non-conformities in the incorporation process, the Registry Office proceeds with the registration within 5 days, in the case of a pre-approved agreement, or within 10 days in the case of an agreement drawn up by the interested parties themselves or in more complicated processes up to 20 days.

With finance, most companies are formed within 15-20 business days.

The deadline may vary and be longer due to:

• government responsiveness
• validity of documents
• company names denied

Schedule Overview:

• Obtaining your CPF: 2 to 7 business days
• Custom name approval: 2 to 5 business days
• Processing by authorities: 5 to 20 business days
• Opening a bank account with Financase in up to 3 business days
• Transfer to CPA: 1 business day to schedule

• Declaration of UBO (Ultimate Beneficial Owner) / RCBE (Central Register of Beneficial Owner),

• Company registration certificate,

• The company’s CNPJ, which is its ICMS (Tax on Circulation of Goods and Services) number,

• A minute book.

These documents are essential for the legal and financial operations of your company in Portugal. They serve as official proof of your company’s registration, ownership, and tax status.