Company Creation in Portugal: Step-by-Step Legal Checklist

Starting a company in Portugal involves more than a business idea—it requires meeting legal requirements that guarantee your business is recognized and compliant. Whether you're a local entrepreneur or a foreign investor, understanding the legal steps is essential to avoid delays, penalties, or operational risks. Here's a comprehensive legal checklist to help you create a company in Portugal confidently and correctly.

1. Choose the Company Type

The most common legal forms in Portugal are:

• Sociedade por Quotas (LDA) – A private limited liability company, ideal for SMEs.

• Sociedade Anónima (SA) – Suitable for larger corporations and those planning to raise capital publicly.

• Sole Proprietorship (ENI) – Easier to register but with full personal liability.

Start by identifying which structure best suits your business needs in terms of liability, capital, and governance.

2. Secure a Company Name

You must ensure your company name is unique and compliant with Portuguese naming rules. You can either:

• Select from pre-approved names via the Official Name Bank.

• Submit a custom name request to the National Registry of Legal Entities (RNPC), which takes longer and has additional costs.

Be aware that each custom name submission costs €150, and rejections require a new submission with the same fee.

3. Obtain a Portuguese Tax Number (NIF)

All shareholders, directors, and representatives must have a Portuguese NIF. Non-residents must appoint a fiscal representative and may need to apply through a tax office or a local lawyer.

4. Open a Company Bank Account

To register the company, you must open a corporate bank account in Portugal and deposit the share capital:

• Minimum €1 for LDA

• Minimum €50,000 for SA

The bank provides a capital deposit certificate, which is required for registration.

5. Prepare and Sign the Articles of Association

You must draft and notarize your company’s Articles of Association, which outline:

• Business activity

• Shareholder structure

• Share capital distribution

• Management and representation rules

You can sign these either in person or via a power of attorney.

6. Register the Company

Register your company with the Portuguese Companies Registrar (Conservatória do Registo Comercial). Required documents include:

• Articles of Association

• Shareholder identification and NIFs

• Capital deposit certificate

• Company name certificate

Once approved, you’ll receive the Portuguese company number (NIPC) and legal existence confirmation.

7. Declare the Start of Activity

You must declare your company's start of activity with the Tax Authority (Autoridade Tributária) within 15 days of registration. A certified accountant usually handles this process.

This step activates your tax obligations, including VAT registration if applicable.

8. Register for Social Security

If you’re hiring employees or are a director with remuneration, you must register with the Social Security Authority (Segurança Social). This ensures proper contributions are made and social protection is provided.

9. Ensure Labour Law Compliance

For companies with employees:

• Draft employment contracts

• Register workers with Social Security before they start

• Comply with occupational safety regulations

• Prepare internal rules or policies, if needed

A human resources consultant or labor lawyer can help align your setup with Portuguese employment law.

10. Apply for Additional Licenses (if needed)

Depending on your business activity, you may need special licenses or authorizations, such as:

• Tourism licenses

• Food and beverage permits

• Transport operator registration

Check with local municipalities or sector-specific regulators before starting operations.

Final Thoughts

Creating a company in Portugal is a structured but manageable process when approached with a legal checklist. From choosing the right legal structure to meeting post-registration obligations, each step ensures your business is compliant and ready to operate within Portuguese law. Seeking help from professionals—lawyers, accountants, and consultants—can help you avoid delays and set a strong foundation for growth.