What are the Different Types of Portugese Businesses?
Foreign investors can establish two main types of businesses under Portuguese law:
- “Sociedades por quotas” (LLCs or Private Limited Companies)
- “Sociedades anónimas,” (Public Limited Corporations).
Each type differs in terms of liability, management structure, and regulatory requirements.
How is a Company incorporated and How Long Does the Process Take?
The process to set up a subsidiary company in Portugal typically begins with gathering all required paperwork. This includes choosing a local representative or legal counsel, identifying shareholders and directors, and preparing the company’s articles of association.
Once these documents are verified, the next step is to proceed with registration at the Portuguese Commercial Registry (Registo Comercial). If all the paperwork is in order, the registration process usually takes 10 to 15 working days.
However, setting up a subsidiary in Portugal also involves additional formalities, including:
- The opening of a corporate bank account
- The registration of the commencement of activities with both the tax administration (Autoridade Tributária) and Social Security (Segurança Social).
These steps are essential for compliance with Portuguese tax and labor laws and generally extend the establishment process by about one month.
The entire process of incorporation can be managed remotely if a power of attorney is issued to authorize a representative. ALTIOS provides services as a representative to facilitate and expedite the incorporation process, handling bureaucratic requirements on behalf of the investor.
On the other hand, establishing a branch (filial) of a foreign company in Portugal requires applying to the Commercial Registry with authenticated corporate documents from the parent company. Once registered, the branch must also meet tax and Social Security obligations, managed locally by appointed professionals.
Foreign companies entering the Portuguese market must understand and manage legal and administrative procedures.
ALTIOS helps you ensure compliance with local regulations and simplifies the incorporation process to set up a subsidiary company in Portugal, so that you can focus on your primary business goals from the very beginning.
