Interested in starting a business in Portugal? If you are, you’ll find that the Portuguese government can be very helpful to entrepreneurs, foreign residents and newcomers to the country alike. Whether you want to set up your own business or become self-employed, there are plenty of opportunities in Portugal that won’t leave you penniless or frustrated. Before you move to Portugal or make the leap into starting your own business there, though, you should know four things about how it works as an entrepreneur there. Here they are!
1) The Portuguese labor market is changing
The Portuguese labor market is changing. For example, foreign direct investments are now at the highest level in recent years and unemployment levels are falling. All this has meant that more jobs are available for employees of all qualification levels – as long as they have the skills and qualifications that employers want. As such, most occupations don’t require special permits, authorisations or licenses for foreigners looking to set up their own company.
2) Starting a Business in Portugal
There are four types of companies which can be registered in Portugal:
- Sociedade limitada (a limited company),
- Sociedade anonima (a public company),
- Cooperativa (a cooperative society) and
- Consorcio de empresas (an association of companies).
To form any one of these types, the minimum capital required by law is €5,000. However, there is no maximum limit.
3) Types of Registered Companies
There are also three different kinds of registered companies, and they are as follows:
- Sociedade Anonima, S.A.: This is the most common type of company in Portugal and its registered name must end with the suffix – S.A., with its legal headquarters set up according to the company’s industry or activity;
- Sociedade Unipessoal, Lda: As an alternative to creating a Sociedade Anonima (Ltd.), this type of entity permits only one individual who has unlimited liability for all debts incurred by the company;
- Fundao/Associao: Foundations and associations differ from companies in that they are non-profit entities.
4) Getting Foreign Investment
Many of the factors that will shape your ability to secure foreign investment for your Portuguese business have nothing to do with Portugal and are common around the world. For instance, investing in developing countries comes with added risk and opportunities; American investors aren’t typically interested in something unless it has an established market or existing users and it doesn’t look like either of those is present.
Further, while many start-ups can rely on personal credit lines or selling their own personal assets, if this is your case then securing funding could be much more difficult. You’re going to want investors who are interested in putting money into something they feel will provide them with a future return on their investment rather than simply getting access to free labor.
Finding a Law Specialist
If you need legal advice or assistance, be sure to contact the experts at RHJ Law. We’re able to guide you through what you need to know before moving to Portugal.
Our legal team at RHJ Law assists non-EEA nationals to obtain residency in Portugal. Our English speaking team of lawyers, accountants and more specialise in helping entrepreneurs and families to set up, manage and grow their life in Europe.
Working with our trusted partners; we can advise you on where to settle and how to go about purchasing property in Portugal.
We look forward to hearing from you soon!
