Business entities in Madeira in 2021
Limited Liability Company (LDA)
Foreign entrepreneurs can wholly own a Madeira company in 3 weeks. This company must be owned by i) a minimum of one director and ii) at least two shareholders of any nationality and residing anywhere in the world. A single shareholder LLC can also be formed but such an entity will be denominated Sociedad Unipessoal LDA. In any case, corporate directors are not allowed, and the minimum share capital for an LLC is only €1 per shareholder. However, it is customary practice to deposit a minimum share capital of at least €1,000.
Public Limited Company (SA)
A Corporation or Public Limited Company (Sociedade Anónima/SA) requires i) a minimum paid-up capital of €50,000 ii) at least five shareholders and one director.
A foreign company can register a branch in Madeira to invoice customers, sign local sales contracts and receive income from local customers.
A foreign company can register a representative office in Madeira to i) promote the business of the parent company and ii) conduct market research. A Madeira representative office cannot make direct sales.
Madeira free zone company
A Madeira free zone company or Madeira International Business Company (IBC) is the optimum structure for both foreign and Portuguese entrepreneurs who wish to conduct international business.