Madeira Company Formation

Madeira is an Atlantic island, and an autonomous region of Portugal. Many international entrepreneurs considering Madeira company formation opt to set up an entity in the International Business Centre of Madeira (IBC). Madeira company formation provides a tax-efficient solution for international investment or a holding company. The following information will help you determine whether Madeira company formation is the optimum corporate solution to meet your international business objectives:

As a region of Portugal, Madeira is a stable jurisdiction with a well established legal system (governed by European Union (EU) and Portuguese law) and economic infrastructure.

Madeira company formation is not perceived as a tax avoidance vehicle. However with proper structuring, a Madeira company formation is a perfect entity to book international profits with minimal tax liability.

International entrepreneurs undertaking Madeira company formation in the IBC are liable to a corporate tax of only 4% from 2010 to 2012 and only 5% from 2013 to 2020.

A company set up in the International Business Centre of Madeira (IBC) is not required to have a physical office in Madeira.

To fulfill Madeira company formation regulations, a minimum of one director is required. The director need not be resident in Madeira and can be of any nationality. Madeira company formation regulations require a minimum of one shareholder.

Investors choosing Madeira company formation are not required to disclose beneficial ownership to Portuguese authorities.

Madeira enjoys the lowest VAT rate in Europe at 15%. Following Madeira company formation, an IBC company is automatically provided with a VAT number.

It is easy to open global corporate bank accounts to support Madeira company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Madeira company formation takes up to six weeks. According to the 2010 Doing Business Survey by the World Bank, Portugal is the world's 48th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

A company located outside the Madeira IBC is liable to pay a Madeira corporate tax of 27%. This type of company can take advantage of the limited network of double taxation treaties Portugal has signed with countries in Europe, Africa and Asia. Portugal is negatively ranked as the world's 62nd freest economy in the Heritage Foundation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

Portugal is negatively ranked as the 35th least corrupt country in the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

Corporate directors are not permitted under Madeira company formation law.

Under Madeira company formation law, every Madeira company is required to have a registered office and address in Madeira.

Following Madeira company formation, an annual tax return is to be submitted.

Following Madeira company formation, annual accounts are required to be submitted to the relevant authorities in Portuguese.

All Madeira companies are required to include in their names the activity or specialisation of the company.

A Madeira company is required to submit a quarterly VAT return.