Month: April 2026

The most common legal forms under Portuguese law are the limited liability company (Lda) with one or more partners, and the public limited company (S.A).

Limited liability company (Lda)

It may be established by one or more partners, whether natural or legal persons.
The minimum capital requirement for the company is 1 EUR per partner.
A minimum requirement is the appointment of a manager, who may be a partner in the company.

Public Limited Company (SA)

It may be established by one or more shareholders, whether individuals or legal entities.
The minimum share capital is EUR 50,000 (30% must be paid up at the time of registration, and the remaining 70% may be paid up within five years).
An audit of the financial statements is required.

Holding company (SGPS)

It must have the legal form of an S.A. or an Lda.
Its sole activity must be the management of shares held in other companies.
Holding companies are permitted to provide technical management services to their subsidiaries under an agreement which must specify the terms of remuneration.

Branch

A company that does not have a physical head office in Portugal but wishes to operate in Madeira, including under the IBCM scheme, must establish a permanent establishment and comply with the provisions of Portuguese commercial registration law.
There is no minimum capital requirement.

Documents required for company registration:

A copy of the partner’s/shareholder’s or director’s passport, bearing an apostille or consular legalisation.
A document confirming the address of permanent residence. Such a document may be either a utility bill or a bank statement, not older than 3 months.
A power of attorney in the registrar’s form (we will send a draft), notarised with an apostille or consular legalisation.

Information regarding company registration:

A proposal for three company names.
A list of the types of economic activity the company plans to carry out.
Specification of the desired authorised capital (the minimum amount required by law is €1 per partner). We always recommend specifying a minimum authorised capital of at least €1,000 upon registration. The capital must be paid up by the end of the first calendar year.

Company registration times:

1 day, if the company name is selected from the registrar’s list of approved names.
5 days, if a unique company name is agreed with the state registrar.