Types of Companies
The legal form you choose is the first structural decision in any Madeira setup, and it shapes your taxation, governance, ownership flexibility and compliance for years. MadeiraLab advises on the full range of options under Portuguese company law, with particular strength in structures built for international ownership and MIBC licensing.
Two tax frameworks
Standard regional regime. Every Madeiran company starts here. The corporate income tax rate is 13.3%, well below mainland Portugal's 19%, with no municipal surtax in Funchal and most other municipalities.
MIBC preferential regime. Companies licensed by SDM pay 5% corporate income tax, with full withholding tax exemptions on dividends, interest and royalties to non-resident shareholders, plus an 80% cut in stamp duty and property taxes. The trade-off is genuine economic substance: either one to five local employees plus a €75,000 investment in fixed assets within the first two years, or six or more employees with no investment requirement.
Legal forms
Lda (Sociedade por Quotas) The standard vehicle for most MIBC mandates. No minimum share capital. Single-shareholder versions allowed (Unipessoal Lda). Ownership interests cannot be transferred freely without shareholder consent, which suits closely held international structures. No statutory audit unless the company passes defined size thresholds. Governance is simple: one manager (gerente) is enough.
SA (Sociedade Anónima) Preferred for group holding companies, multi-owner structures and entities that need formal governance. Minimum share capital €50,000. Shares transfer freely. Annual audit by a registered statutory auditor is mandatory. A board is required, although a single director is enough where share capital does not exceed €200,000.
SGPS (Sociedade Gestora de Participações Sociais) A specialised Portuguese holding company whose only statutory purpose is managing shareholdings. It can take the form of an Lda or SA, and can provide services to, and in some cases lend to, its subsidiaries. This is the structure of choice for a pure EU holding platform inside the MIBC, pairing the 5% rate on non-EU income with Portugal's Participation Exemption on EU-source dividends and capital gains.
Trust (MIBC only) Madeira is the only jurisdiction in Portugal that allows trust incorporation. The settlor sets the governing law and can change it at any time. Income paid to non-resident or MIBC-licensed beneficiaries is fully exempt from Portuguese tax. Mainly used for wealth structuring, asset protection and cross-border succession.
Branch (Sucursal) An extension of a foreign parent, not a separate legal person, so the parent keeps full liability. Used where setting up a separate entity is not warranted. A branch must keep legal representation in Madeira.
Registration
MIBC companies are incorporated through the Madeira Free Zone Private Notary Office, which handles public deeds with full exemption from standard notarial fees and stamp duty, a practical cost advantage specific to the MIBC. MadeiraLab runs the whole process: name approval, articles of association, registry filings, tax registration and the MIBC licence application with SDM. Standard incorporation takes five to ten business days, and MIBC licensing adds two to four weeks depending on SDM processing.
Companies formed elsewhere can move their registered office to Madeira through redomiciliation, keeping their legal history and banking relationships while accessing the MIBC framework going forward.
Contact MadeiraLab for a confidential assessment of the right structure for your goals.