Portugal Company Formation |
|
|||||||||||||||
The Portugal economy was badly hit by the financial crisis of 2008, but it remains a natural hub for trade between Europe and the Americas. Portugal's government actively seeks to attract foreign investment, offering plenty of incentives for Portugal company formation. The following information will help you determine whether Portugal company formation is the optimum corporate structure to fulfill your international business objectives. |
||||||||||||||||
Advantages of Portugal Company Formation |
||||||||||||||||
1. |
100% foreign ownership is allowed for Portugal company formation. A minimum of 2 directors and 1 shareholder are required for Portugal company formation using a limited liability company (LDA). They can be of any nationality and need not be resident of Portugal. It is also possible to set up a LDA with a single shareholder, named Sociedade Unipessoal por Quotas (SUQ). |
|||||||||||||||
2. |
||||||||||||||||
3. |
Portugal offers one of the lowest operational costs in Western Europe, with a technically competent and skilled labor force with low labor costs. It also has one the youngest working populations in Europe. |
|||||||||||||||
4. |
Portugal company formation also requires low capital requirements, with a low, minimum EUR €5,000 capital outlays for a LDA and no minimum capital requirements for a branch office.
|
|||||||||||||||
5. |
Portugal also provides adequate infrastructure for Portugal company formation due to its high quality of support services for investors, both during and after investment, and it boasts one of Europe’s best records for industrial relations. |
|||||||||||||||
6. |
Portugal company formation does not require an audit for small companies. |
|||||||||||||||
7. |
Following Portugal company formation, Healy Consultants can open corporate bank accounts with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank. |
|||||||||||||||
Disadvantages of Portugal Company Formation |
||||||||||||||||
| 1. | A corporation (SA) requires a minimum of 5 shareholders and a minimum capital of EUR €50,000. If the capital does not exceed EUR €200,000, corporations are only required to have a single director. A chartered accountant must be appointed in this type of company. |
|||||||||||||||
| 2. | Portugal company registration, as a limited liability company, requires a minimum share capital of EUR €5,000 (approximately US$7,000), relatively high compared to other developed jurisdictions. |
|||||||||||||||
| 3. | Corporate tax in Portugal is 25%, with the maximum effective rate of 27.5%, depending on additional charges by municipalities. However, Portugal offers access to two free trade zones in Madeira and the Azores, where corporate tax exemptions will remain in force until the end of 2011. |
|||||||||||||||
| 4. | Portugal company formation can be a relatively time consuming process, taking on average 2 weeks. According to the World Bank's 2011 Doing Business Survey, Portugal is the world’s 31st-easiest place to do business. The survey measures factors including business start up procedures, costs, time and minimum capital required to start a business. |
|||||||||||||||
| 5. | With Portugal’s VAT rate increasing to 23% in 1 Jan 2011, it has one of the highest VAT rates in the European Union (EU). |
|||||||||||||||
| 6. | Portugal is ranked as the world's 32nd-least corrupt country, according to the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Furthermore, Portugal is poorly ranked as the world's 46th-most competitive economy in the World Economic Forum's Global Competitiveness Report 2010-2011. |
|||||||||||||||
| Contact Us | ||||||||||||||||
For further information on Portugal company formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120. |
||||||||||||||||
Back to Europe Company Incorporation page. |
||||||||||||||||
| Back to Home page. | ||||||||||||||||
PORTUGAL NEWS |
||
|---|---|---|
|
|
|
| © 2003-2012 Healy Consultants Pte Ltd | EUROPE COMPANY SETUP SERVICES |
