Start a business
How to open a company in Portugal
Balcões Empresa na Hora
Choosing the company name
Choosing a pre-approved articles of association template
Making an appointment and going to "On-the-Spot Firm" Desk
Preparing the articles of association and filing the commercial register
Appointment of a certified accountant
Choosing a name
Selection of a pre-approved articles of association template and inclusion of company information
Insertion of information about the participants and the Certified Accountant
Joining the Arbitration Centre
Validation and sending of documents
Types of companies
Most common types of companies
The choice between the two depends:
Questions you should ask when choosing:
Main taxes after the incorporation of the company
- Social Security Contributions.
- Refers to the monthly salary of each worker. It amounts to 34.75% of income, of which 23.75% is paid by the employer and 11% is withheld from the worker.
- It amounts to 34.75% of income, of which 23.75% is paid by the employer and 11% is withheld from the employee.
- General rate of 21%, to which must be added the municipal surcharge with a rate up to 1.5%, and the state surcharge (for companies with profits above 1.5 million euros). with a rate between 3% and 9%.
- It is levied on transactions of goods and services.
- Rate varies between 6% and 23% (depending on the type of goods or services offered by the company}.
1) To this rate may be added the municipal surcharge (2) To this rate may be added the state surcharge
Monthly fixed operating costs:
What is the cost of a worker?
The minimum wage in 2021 is € 665.
Autonomous Region of the Azores – € 698.25.
Autonomous Region of Madeira – € 682.
- The normal working hours of each employee may not exceed 40 hours per week and 8 hours per day.
- Workers are entitled to 22 working days holiday per year and 13 public holidays per year.
- The employee is entitled to holiday and Christmas bonus (each one corresponding to a full salary).
- That’s 14 salaries a year, for 11 months of activity.
- There are mandatory costs with Social Security (TSU of 23.75%) and with meal allowance (minimum value of 4.77 € in 2020).
- Add occupational accident insurance (not exceeding 1% of salary) and other mandatory costs for vocational training, occupational medicine and health and safety at work audit.
- Most of the employment links consist of:
- fixed-term employment contracts (fixed or uncertain);
- open-ended employment contracts.
- 90-day trial period for most employees.
Example of calculation:
– Cost of an employee with a basic salary of € 1 000
Basic Salary: 1 000 € x 14 months = 14 000 € / 12 months = 1 166,66 €
Social charges: 1 000 € x 23.75% = 237.50 € x 14 months = 3 325 € / 12 months = 277.08
Workplace accident insurance: 1 000 € x 1% = 10 € (monthly)
Food allowance: 4.77 euros x 22 working days – 104.94 euros x 11 months = 1 154.34 euros / 12 months = 96.20 euros
Total monthly cost 1 166,66 € + 277,08 € + 10 € + 96,20 € = 1 549,94 €
Total annual cost = 18 599,28 €
Accounting system and audits
- Portuguese companies must keep their accounting records in Portuguese and must be organised in accordance with the accounting standardisation system.
- The books shall be kept under the responsibility of a certified accountant.
- All transactions of Portuguese companies must be reflected in the accounts with original supporting documents.
- Public limited companies and private companies are required by law to have their accounts audited by a statutory auditor (ROC) whenever two of three conditions are met for two consecutive years:
- Total net sales and other income exceeding 3 000 000 €:
- Total balance sheet value above 1 500 000 €:
- Total number of employees on average during the year exceeds 50.