Setting up a business in Portugal

An overview of the process of starting a new business in Portugal.

Legal requirements

In addition to involving a process of reflection based on financial and market studies, setting up a new company presupposes a series of steps. The legal aspects behind drawing up any partnership contract are included in the Companies Act. Article 9 not only lists all the indications which must appear in partnership contracts but the referred Act also defines which legal forms companies may assume.

Structure and legal forms of the companies

The choice of one legal statute determines the functioning model of the company, which has implications for both the entrepreneur and the future business, not to mention that some of the steps necessary may be different according to the chosen statute.

A company may be: sole-proprietorship or partnership. In both cases, a company may assume various legal forms.

Sole-proprietorship: if relating to a business carried out by a sole proprietor which affects the proprietor's personal assets to the operation of the business for which he or she is responsible, in an unlimited form, for the eventual debts contracted in the exercise of its activity. In this case, the possible legal forms are:

• Sole proprietor;
• Single shareholder limited liability company;
• Individual limited liability establishment.

Partnership: if relating to a business carried out by more than one person (partners) where the responsibility is shared by the different proprietors. In this case, the possible legal forms are:

• Limited company;
• Public limited company;
• Partnership;
• Limited partnership;
• Cooperatives.

The Institute of Support to Small and Medium Enterprises and Innovation (IAPMEI) makes available, on their website, a guide "Ten Steps to Set Up a Company" where the ninth section, concerning the legal aspects and formalities, provides information about the legal forms of companies as well as the role of Business Formality Centres (CFE).

Ten Steps to Set Up a Company [PT]

In addition to the usual procedures, any new successful company requires a good commercial strategy and secure financing.

Access to finance — Portugal

Administrative procedures

The actual setting up of a business itself assumes the fulfilment of a series of steps in various administrative entities. Today however, the process is greatly simplified with many different possibilities for setting up a business. The Business Gateway (Portal da Empresa) allows for the use of new measures: Firm on the Spot and On-Line Company but it also continues to offer the Traditional Method. In each one of their explanation pages, the different steps necessary to have a newly incorporated business legally recognised are listed.

Setting Up a Company [PT]

In order to use the On-Line Company method, digital certification of the user is required. This digital certification is something that the Citizen ID Card, now being distributed in phases throughout the country, will allow. Through this method, it is possible to set up companies of any type, with the exception of companies whose share capital is paid in by contributions in kind and European Public Limited Companies.

On-Line Company [PT]

With the Firm on the Spot method it is possible to set up a single shareholder limited liability company, a private limited company or partnership, or a public limited company in less than sixty minutes. All the procedures are carried out in one place and as long as the partners have all of necessary documents, the company is set up immediately at one of the desks of the Firm on the Spot, available throughout the country.

Firm on the Spot [PT]

The Traditional Method implies various visits but it will have the advantage of personal contact.

Traditional Method [PT]

The Business Formality Centre (CFE) is another information and attendance service created to help the future entrepreneur through the required steps. At each CFE there is a Delegation of the National Registry of Companies (RNPC), a notary's office and a Registration Support Office.

Business Formality Centre [PT]

Upon the set up of the company there is another electronic service which allows the certification of micro, small and medium enterprises in accordance with Commission Recommendation (2003/361/EC) of 6 May 2003.

SME Certification On-line [PT]

Certain company mergers must notify the Competition Authority (CA). Their Internet page has a Frequently Asked Questions section where these operations are explained, as are what steps to take for notification.

Frequently Asked Questions on the Control of Mergers

Resources

For the preparation of a Business Plan, a practical guide was created by IAPMEI.

How to elaborate a business plan [PT]

As a public institute of support for SMEs, IAPMEI is the national bureau best equipped to remove any doubts about these business entities. Its website has updated information about SMEs in the national business framework.

SME Frequently Asked Questions [PT]

The installation of industrial facilities may require a licensing request. The Business Development Agency (AICEP) offers an Investor's Guide in Portugal on their website.

Programmes

Within the framework of promoting jobs, the Institute of Job and Professional Training (IEFP) created a Support Programme to Local Job Initiatives. Among other initiatives to help create new companies, there is business management training and specialised consulting in the areas of finance, commerce, human resources, marketing, advertising and production management.

Support to Local Job Initiatives [PT]

Companies in the process of being created may rely on services of the different Inter-Firm Clusters spread throughout the country. This service is provided by IEFP and offers training programmes for future entrepreneurs on setting up businesses, technical follow-up in the starting and development phases of a business initiative, and in an initial phase, the actual work space and necessary logistical services needed for setting up a company.

Information on the programme of Inter-Firm Clusters [PT]

Locating existing Inter-Firm Clusters in the country [PT]

Within the framework of IAPMEI, the FINICIA Programme was created to facilitate access to financial aid needed for setting up a business. The Program develops awareness activities for entrepreneurship, shares conditions of support and offers assistance in the establishment of a Business Plan as well as help in obtaining risk capital or guaranteed credit.

FINICIA Programme [PT]

The establishment of cooperatives is supported by the Instituto António Sérgio do Sector Cooperativo (Inscoop) namely through the Programme of Cooperative Development (Prodescoop).

How to create a cooperative [PT]

Prodescoop [PT]

Personalised help and advice

IAPMEI provides entrepreneurial assistance to all interested parties. Among the services offered are: technical assistance, competence analysis, elaboration of a competitiveness diagnosis and organisation of meeting for competitiveness.

Entrepreneurial Assistance [PT]

The Enterprise Europe Network provides businesses with information and advice through its local partners.

Enterprise Europe Network – contact points – Portugal

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.

SOLVIT – contact points – Portugal

Source: European Commission