News article by Luís Leitão Teixeira, Lawyer - International Atlantic Services

Are you ready to take your entrepreneurial vision to new heights? Portugal offers the perfect playground for business innovation and growth, our team in IAS is here to guide you every step of the way.

A company is a powerful vehicle for turning entrepreneurial dreams into reality. By forming a legal entity investors can engage in and operate a business enterprise that can range from a local startup to a global powerhouse. One of the standout features of a company is its ability to offer limited liability to its owners. This means shareholders' personal assets are shielded from business debts and liabilities, protecting their financial well-being.

Limited liability is a game-changer in the business world. It encourages bold investments and entrepreneurial ventures by minimizing the financial risk for individuals. When investors know their personal assets are safe beyond their stake in the company, they are more likely to fund innovative projects and ambitious growth plans. This security fuels a dynamic business environment where companies can thrive, take strategic risks, and drive economic progress.

Furthermore, the structure of limited liability companies (LLCs) or corporations makes it easier to raise capital. Investors can confidently buy shares, providing businesses with the essential funds to expand operations, explore new markets, or invest in cutting-edge research and development. This ability to attract investment is a significant advantage, enabling companies to scale rapidly and compete effectively on the global stage.

Entrepreneurs looking to start a business in Portugal must first incorporate a company, which involves meeting specific requirements, such as:

1. Capital Social: A minimum share capital is required to establish certain types of companies, such as Sociedade Anónima (SA) - 50 000€ and Sociedade por Quotas (Lda) - 1€;
2. Company Name: Choosing a unique and suitable company name is essential. The name must not already be in use by another company, and it must comply with legal requirements regarding clarity and transparency;
3. Registered Office: Companies must have a registered office in Portugal, which serves as the legal address for official correspondence and business operations;
4. Legal Documentation: Entrepreneurs need to prepare and submit various legal documents, such as articles of association (for SA and Lda), shareholder agreements, and registration forms, depending on the type of company.

Beyond meeting regulatory requirements, entrepreneurs benefit from several advantages when starting a business in Portugal:

1. Strategic Location: Portugal's geographic location offers easy access to European, African, and American markets, facilitating international trade and business expansion;
2. Business-Friendly Environment: The Portuguese government has implemented business-friendly policies, streamlined administrative procedures, and offers support programs for entrepreneurs and startups;
3. Tax Incentives: Portugal provides various tax incentives for businesses, including reduced corporate tax rates, tax credits for research and development activities, and exemptions for certain types of income;
4. Skilled Workforce: Portugal has a well-educated and skilled workforce, proficient in multiple languages, which supports business growth and innovation;
5. Quality of Life: Entrepreneurs and employees enjoy a high quality of life in Portugal, with excellent healthcare, education, and recreational amenities;
6. Access to Funding: Portugal offers access to various sources of funding, including venture capital, government grants, and European Union financing programs, to support business development and growth.

By meeting the requirements and taking advantage of the favourable business environment, entrepreneurs can establish successful and thriving businesses in Portugal, tapping into its strategic advantages and opportunities for growth.

Contact us now to embark on your entrepreneurial adventure with IAS by your side.

Your success story starts here!