Starting a business in Portugal: Guide for Indian residents with requirements, fees, & opening Portugal business account

Portugal offers many benefits to modern entrepreneurs as a digital and business-friendly nation. It has an attractive tax structure and is one of the most affordable nations in the European Union. A recent push for digital programs has made opening a company in Portugal easy- but as long as you have a citizen card or qualify for the Startup visa. Learn more about opening a company in Portugal and what to expect from the process.

Table of contents

Can you register a company in Portugal from India? Different types of companies in Portugal Requirements to start Portugal company from India What does it cost to run a Portugal company Starting costs for setting up the company Fees for compliances, annual filings Taxes and Government Fees Starting a business account for Portugal company Moving to Portugal from India Startup / Entrepreneur Visa Program

Can you register a company in Portugal from India?

Yes, technically Portugal allows Indians to register a company from India. However, like many European nations, Portugal has different rules for citizens from non-EU/EFTA nations to open companies. Generally, Indian business entrepreneurs must follow the rules for non-EU/EFTA citizens which means that they must get a Portuguese residence permit or acquire citizenship in Portugal. In addition, obtaining a tax identification number and opening a bank account is necessary for Indians to open companies in Portugal.

There is a new alternative option for Indian nationals to open a company and run a business in Portugal. They can do it under the Portugal Startup Visa program by having a promising tech-based enterprise. Check out the section on visas at the end of the article.

If you hold a Portuguese Citizen Card, you can easily open a company online with the ePortugal website. You must have the digital signature or digital mobile key activated on your citizen card. ¹

Different types of companies in Portugal

The Portuguese Companies Code regulates different legal business structures in the country. Here are some of the different types of companies and their structures:.²

• Individual Entrepreneur (Empresario em Nome Individual) - Often the easiest type of business to open, this structure is ideal for a single owner or small business. This business entity has no minimum capital requirement, and the proprietor has unlimited liability, or responsibility, for debts and obligations.
• Individual Limited Liability Establishment (Estabelecimento Individual de Responsabilidade Limitada) - This entity is similar to a sole trader, but the proprietor has a limited liability. This structure requires a capital investment of €5,000 EUR.
• Single-Member Limited Company (Sociedade Unipessoal por Quotas) - This entity is similar to the Individual Limited Liability Establishment and has a minimum capital requirement of €5,000 EUR.
• Limited Liability Partnership (Sociedade em Comandita) - A minimum of two partners are necessary to establish this business entity. The business can have partners who invest but have limited liability related to the amount of their contribution.
• Partnership (Sociedade em Nome Colectivo) - It requires a minimum of two partners who take on unlimited liability to cover business debts and obligations, if necessary.
• Public Limited Company (Sociedade Anomina) - This company requires a minimum of five shareholders and a capital investment of at least €50,000 EUR. The shareholders remain liable for business debts up to their investment or share value.
• Private Limited Company (Sociedade por Quotas) - This business entity requires a minimum investment of €5,000 EUR and at least two partners. The minimum shareholding amount is €100 EUR per share. All shareholders are liable for business debts.

If you are eligible for registering a company on ePortugal, you can open a Private Limited, Sole Private Limited or Public Limited Company online.

There are additional business structures to consider, including those for non-profits. A business advisor or accountant can help you choose the best type of structure for you.

Requirements to start Portugal company from India

Registering a company on the ePortugal website is simple and easy, as long as you qualify. Here are the steps: ³

• Confirm your eligibility - Indians must ensure they are legally eligible to start a business in Portugal. You must have a Portuguese Citizen card and a digital signature or digital mobile key, or one of the appropriate visas.
• Access the ePortugal portal - complete the authentication and fill in the required details like your name, email, address and civil identification number.
• Choose a business name - The next step is choosing a unique name for your business. You can submit up to 9 options, or choose a name from the list. If you already have a certificate of admissibility from a previously approved name, you can enter in the access code on the screen.
• Complete the business details - Enter in the information about the company, including the type of structure and who else is involved.
• Register the company - Sign the memorandum and articles of association digitally. The documents will include information like company type and partner’s share.
• Make the payment- pay the set-up fee by credit card or your bank’s website.
• Start your business - Once registration is complete,you can start operations, hire workers and open a bank account.

Opening a company online is the easiest and most convenient option. You can also open a business at a Empresa na Hora desk as long as you have all your documents ready. If you do want to open the business in person you may have to go to multiple agencies including the Commercial Registry Office. ⁴

What does it cost to run a Portugal company

The costs for running a Portuguese company is going to vary depending on the size and industry of the business. A digital business will likely have lower starting costs than an import/export business which requires supplies and materials. While it’s hard to say exact costs, here are some general expenses most businesses run into when starting a company:

• Employee salaries: Employee salaries, including your own, can make up a large chunk of the business’s starting expenses. Remember to comply with labour laws in Portugal and make the appropriate contributions to social security and benefits for all your employees.
• Office and maintenance: With many people working remotely, you may not need a physical office space and the additional costs that come with it. However, you may have to pay for coworking memberships or work-from-home office setups for you and your employees started.
• Insurance and taxes: Depending on your industry, you may need to get insurance for your bsuienss and goods. Make sure you pay the required local, regional and national taxes including VAT (Value Added Tax). A local tax accountant can help you navigate the tax system in Portugal.
• Professional services: Local professionals, like a lawyer, notary or accountant, can help keep you in compliance with the government and regulatory environment in Portugal. They will be an added expense but can save you from penalties and fines later.

There may be additional costs when starting your business. It is a good idea to keep good records of all your expenses for accounting purposes.

Starting costs for setting up the company

Here are some of the costs when you register a company on the ePortugal website:⁵

Setting up cost	Fee
Company with pre-approved MoA and AoA	€220
Company with a memorandum and articles of association drawn up by the company	€360
​Trademark for specific goods and services	€100
Each additional class of goods and services	€44

Fees for compliances, annual filings

In addition to the initial costs of establishing and registering the company in Portugal, there will be costs for compliance and annual filings. Check with your accountant for the annual filing and compliance fees you may incur.

Taxes and Government Fees

Companies must comply and pay the appropriate taxes per the the tax structure in Portugal. Here are some of the different taxes you can expect:⁶

• Corporate Income Tax (IRU)
• Social Security (TSU) - This can be a percentage of the employees salary.
• Value Added Tax (VAT) - The VAT charges can depend on where you are in the country and the service or industry you are in.
• Custom duties - this is relevant for companies that are importing and exporting goods.

It is recommended to work with a tax accountant to ensure you have met all your personal and business tax liabilities.

Starting a business account for Portugal company

A business bank account is important to operating in Portugal. It can allow you to receive payments from clients and pay local staff and professionals. Some of the major banks in Portugal are Santander, Novo Banco, CDG, and Banco CTT, plus many foreign banks have branches in the country.

To open a business bank account you may be asked for your MofA, AoA, Tax ID number and the information of any directors or partners.

Need to open a bank account? Here is our guide to opening a personal bank account in Portugal.

Challenges in opening and managing account from India

Online and mobile apps have made banking easy when you are traveling or abroad. But many banks still charge a high transfer fee and an exchange rate fee when you send money internationally. The exchange rate fee is when the bank marks up the exchange rate, so they collect a small fee from every Euro you convert.

Want to send transfers without losing money to an exchange rate fee? Check out Wise.

Simplify international transfers with the Wise Business Account

Making international transfers just got easier with the Wise Business Account. This is one account that lets you deposit funds directly into local bank accounts in different countries. So now you can pay suppliers, freelancers and vendors around the globe.

The Wise Business Account also provides bank details in multiple global currencies, making it easier than ever for clients to make payments in their preferred currency.

Our online process lets you open and verify your Portugal business account from India. With our customer support available in English and our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

Business categories supported on Wise 👉

It’s the low transfer fee and mid-market exchange rate you know from Wise, but now for your business. Join the over 300,000 businesses that already use Wise Business every quarter and see how simply it can be to operate globally.

Moving to Portugal from India

To work and stay in Portugal, Indian passport holders require a visa for the country. Here are unique visas for working in Portugal:⁷

• ER Visa for Digital Nomads- this visa is for remote workers who show evidence of employment or work contracts and proof of average monthly income. This does not allow for starting a company, but digital nomads can work while residing in Portugal.
• DR visa for Digital Nomads- similar to an ER Visa, the DR visa allows digital nomads who can show evidence of work contracts and average monthly income, reside long-term in Portugal.

All visas for Portugal are processed through the VFS Global official site for Indian passport holders.

Startup / Entrepreneur Visa Program

The Startup Visa Program is specifically for tech-based entrepreneurs who meet the following qualifications:⁸

• An intention to develop a business for innovative products or services.
• Open to relocating to Portugal.
• A focus on technology and knowledge
• Has potential to create qualified employment in Portugal
• Has a plan to create at least €325,000 EUR of valued assets or turnover within 5 years.
• Has been approved and received a statement by IAPMEI, I.P.(the Portuguese public Agency for Competitiveness and Innovation – within the Portuguese Ministry of Economy)

The Startup Visa program is a D2 visa which is valid for 4 months upon entering Portugal, within that time you must apply for a residence visa. The Startup Visa process is completed through VFS Global and the Embassy of Portugal in India.

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This article is not intended to be financial, legal, immigration or business advice. Consult a professional for tailored advice and guidance for you and your business.

Sources used for this article:

1. Migrants: Working and creating a business in Portugal - ePortugal.gov.pt
2. Different types of business structures in Portugal
3. Create a company online - ePortugal.gov.pt
4. Online registration of companies in Portugal
5. Costs for registering a company in Portugal
6. Practical guide for your business - ePortugal.gov.pt
7. Visa Information
8. Visa Information

Sources verified on 7 December 2023.

Cover photo by Maksym Kaharlytskyi on Unsplash.