Open a Company in Portugal for Foreigners: All the FAQS

If you've ever dreamt of expanding your business to the sun-kissed shores of Portugal, you're in the right place. We’ll answer your main questions throughout this guide. By the end, you’ll get a clearer picture of how to open a company in Portugal for foreigners (even if you aren’t a European citizen), which you can start online – but be aware that this option comes with certain restrictions and may not be suitable for all types of businesses or individual circumstances.

Let’s dive into costs, residence permits, and other important information.

What You’ll Learn:

• Opening a Company in Portugal for Foreigners: The Answers You’re Looking For

  Can a European non-resident open a company in Portugal?
  What about a US citizen? Is it possible to own a business in Portugal?
  How much does it cost to open a company in Portugal?
  Can I start a business in Portugal without a residence permit?
  For EU/EFTA Nationals
  For Non-EU/EFTA Nationals
  How long does it take to open a company in Portugal?

Opening a Company in Portugal for Foreigners: The Answers You’re Looking For

Many doubts arise when expanding your business overseas.

• What’s the plan?

• How many people are you hiring?

• Will you incorporate a business in Portugal?

• Or do you prefer to build a remote team instead?

• How much will you spend?

• Are there too many taxes?

• Do you need an accountant or lawyer?

• What about a Portuguese bank account?

This is just the beginning, right?

Jumping outside your comfort zone is quite the challenge. So, let’s try to make it easier for you by answering the main questions on how to open a company in Portugal for foreigners.

Can a European non-resident open a company in Portugal?

Absolutely! Portugal is rolling out the welcome mat for non-residents by gathering attractive investment incentives. This means you don't need to be a local to dive into the vibrant business scene in the country. 

The process is designed to be foreigner-friendly. However, it can get confusing throughout some phases. At those times, you’ll probably wish for some close, quick assistance – which you can get for bureaucratic questions, labor law compliance, or even tax matters.

What about a US citizen? Is it possible to own a business in Portugal?

For sure! 

The Atlantic Ocean won't stop you from expanding to Portugal. Sure, you’ll need to gather some more documents than EU citizens, but it’s far from impossible or hard to reach. The straight answer is yes: you can set up a company in Portugal if you’re a US citizen. But expect a longer process, though. Bureaucracy in Portugal can test most limits and slow down processes.

How much does it cost to open a company in Portugal?

Let's talk numbers.

By this time, you should have a thought-out budget. Hold it close, but be flexible – you could face unexpected expenses along the way. 

The cost of opening a company in Portugal varies depending on your needs. You must pay fees from registration to legal expenses. But there’s more. So, expect costs for most of these phases: 

• Ongoing accounting services

• Getting a lawyer (needed in most cases)

• Registering your company (and pick a name; you can choose a pre-approved one for a quicker process)

• Obtaining all the business permits and licenses

At the end of the day, it’ll all depend on your company’s structure, activity, services, location, and more. There are a lot of expenses related to business registration, legal assistance, accountants, renting or buying investments, notary fees, registration costs, and more.

That means you can start spending around €400 but rapidly increase to €1000 or more. If your company's structure is not as simple as the pre-approved articles of association, you should seek professional, local assistance.

Can I start a business in Portugal without a residence permit?

As you know by now, it depends.

When you want to start a business in Portugal, you need to ensure further documentation – meaning you’ll probably need a specific permit or visa to open a company in the country. But let’s divide processes into 2 groups.

For EU/EFTA Nationals

As an EU/EEA/Switzerland citizen planning to stay in Portugal for over 3 months, you must obtain a Registration Certificate. This certificate affirms your residency rights in Portugal and is available for approximately 15€ at the Local Council in your residence area.

For Non-EU/EFTA Nationals

If this is your case, you must request a Portuguese Work Visa and a Residence Permit. 

Portugal offers specific programs for different profiles: 

• The Startup Visa supports foreign entrepreneurs in securing a visa and residence permit and finding a certified incubator for their projects. 

• The Tech Visa is for highly skilled professionals in the technology and innovation sectors.

• The Golden Visa, which is no longer accessible for investments in Lisbon and Porto as of December 2020, may be an option for investors. If you’re a non-Portuguese citizen, you can find detailed information about the registration procedures at SEF’s website (Official Portuguese Immigration Authority).

In both scenarios, the next step is to get a Tax Identification Number (NIF) from the Portuguese Tax Office and a Social Security Identification Number (NISS).

How long does it take to open a company in Portugal?

Typically, it takes between a few days or weeks. 

In Portugal, you can register a company quite fast, thanks to the available online setup – meaning it’ll take only a few hours. However, the documentation you need before and after that can take longer to be approved.

As you need Social Security and tax numbers, amongst eventual residence permits, be patient. The process takes time in those cases.

So, there you have it: a sneak peek into the world of opening a company in Portugal for foreigners. Consider costs and documentation above all. And remember to comply with the local labor law at all times – to avoid fines.