Madeira company registration


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Madeira is an Atlantic island, and an autonomous region of Portugal. Many international entrepreneurs considering register a company in Madeira opt to set up an entity in the International Business Centre of Madeira (IBC). Madeira company provides a tax-efficient solution for international investment or a holding company.

Compare different Madeira entitiesPrivate LLCPublic LLCE-business companyShipping companyBranch office
Also known asSociedade por QuotasSALdaLdaFilial
Best use of company?All products/ svcsTo get pub. fundingInternational business svcsMaritime transportationSpecific projects
How soon to invoice Clients?2 weeks2 weeks6 weeks6 weeks2 weeks
How soon can you hire staff?2 weeks2 weeks4 weeks4 weeks2 weeks
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week
How long to supply corporate bank a/c?4 weeks4 weeks4 weeks4 weeks4 weeks
How long to supply co. reg / tax numbers?2 weeks2 weeks4 weeks4 weeks2 weeks
Corporate tax rate on annual net profits?5%5%5%5%5%
Limited liability entity?YesYesYesYesNo
Government grants available?YesYesYesYesYes
Govt approval required for foreign owners?NoNoNoNoNo
Res. director/partner/ legal rep. required?NoNoNoNoNo
Minimum paid up share capital?€1€50,000€1€1None
Can bid for Government contracts?YesYesYesYesYes
Corporate bank account location?SantanderMillenium BCPDeutsche BankCitibankBNP Paribas
Can secure trade finance?YesYesYesYesYes
VAT payable on sales to local customers?22%22%22%22%22%
Average total business set up costs?€14,750€16,950€14,750€14,750€15,300
Average total engagement period?3 months3 months3 months3 months3 months

Madeira company registration summary

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages of Madeira company registration

    Madeira business registration advantages and challenges

    1. Multi-national Clients use Madeira as a gateway to the European market because:
      • Madeira corporation tax is a mere 5% of annual net profits, if certain conditions are met, guaranteed until 2027;
      • Madeira is part of the Portuguese territory and has a Portuguese VAT number. Thus, a Madeira company has immediate access to the free circulation of goods and services within the EU market.
      • A Certificate of Residence is issued by the Portuguese Tax Authority. As a result, a Madeira LLC can access Portugal’s network of double taxation agreements and EU Council directives.
      • Madeira double tax treaties include i) all European Economic Area (EEA) countries ii) Brazil iii) Mozambique iv) Korea and v) Venezuela.
    2. A Madeira LLC is an excellent holding company because:
      • The parent subsidiary directive allows a Madeiran holding company to receive dividends exempt from withholding tax from subsidiaries domiciled in the European Union;
      • Income received from non-EU subsidiaries suffer a mere 5% corporation tax;
      • There is no Portuguese withholding tax on dividend payments to overseas shareholders;
      • There is no Portuguese withholding tax on payments to overseas shareholders relating to intellectual property, technical services, management fees or head office expenses;
      • There is no capital gains tax on the sale of shares in international subsidiaries;
      • Access to Portugal’s network of double taxation agreements.
    3. Madeira is an attractive jurisdiction in which to register ships because i) the vessel can fly the Portuguese flag ii) it is included in the EU registrar of vessels and iii) it has unrestricted access to EU waters and iv) all international conventions ratified by Portugal are fully applicable v) the income of a ships’ crew is completely exempt from tax and vi) access to Portugal’s network of double taxation agreements.
  • Disadvantages of Madeira company registration

    1. To benefit from low tax benefits, a Madeira LLC must meet the following criteria:
      • It must have local economic substance including i) at least one local employee and ii) a physical office address and iii) a minimum paid-up share capital of US$ 75,000;
      • Each company director must obtain a Portuguese personal income tax number.
      • All directors’ and shareholders’ information is available on an open online register (click link);
      • Annual audited financial statements are prepared in Portuguese and available for public viewing.
    2. Because multi-national companies were allowed to avoid local economic substance requirements, the European Commission is currently investigating Madeira for potential abuse of the corporate income tax reduction scheme. Consequently, there is a risk the 5% corporation tax benefit may disappear before 2027.
  • Tell us what you need - we’ll send you a customised proposal in 5 hours!

    To help us engineer the optimum Madeira corporate structure, please complete the 3-minute questionnaire below; then press the submit button below.

    This data remains confidential and is not sold to third-parties.

    Within 5 hours, one of our senior staff will ring or email you:

    • Company purpose?

    • Company structure?

    • Tell us about your existing business?

    • Tell us about you?

    • How do we contact you?

    Thank you for taking the time to complete this important questionnaire. It will help us to timely complete your engagement with minimum inconvenience to you.

  • Useful links for Madeira

Contact us

For additional information on our company registration services in Madeira, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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