How to set up a company in Portugal as a foreigner

How about expanding your business to the seashore? First step: knowing how to set up a company in Portugal—a solid, growing tech hub where international businesses are landing in recent years. 

Whether you run a startup or a bigger business, here you’ll find all your options: how to open a company in the country (including through an online process), how much it costs, and how long it’ll take. Keep reading to clear all your doubts.

What you’ll learn:

• Set up a company in Portugal: How to start in 3 steps

  1. Choose your business structure
  2. Register your company in Portugal
  3. Documents, licenses, and permits to open a business in Portugal

• Set up a company in Portugal: All the FAQs cleared out

  Can a foreigner start a business in Portugal?
  How much does it cost to start a company in Portugal?
  How long does it take to set up a company in Portugal?
  How much tax does a company pay in Portugal?

Set up a company in Portugal: How to start in 3 steps

It’s quite simple to set up a company in Portugal—especially when compared with other countries. And that’s mainly because many processes in the country have been digitized. It’s not the fastest track ever, but it’s pretty straightforward.

You’ll need to choose your company’s legal structure and name, define roles, and register a business address.

But don’t worry. We’ll guide you through every step.

1. Choose your business structure

First, you should decide on your company’s legal structure. If you’re the only one opening a company in Portugal, then opt for an individual one. There are 3 types to choose from:

1. Individual Entrepreneur

2. Individual Limited Liability Establishment

3. Sole proprietorship by shares

However, if you’re partnering with 1 or more people, you must go with a collective company. And there are 6 to choose from:

1. General Partnership

2. Private Limited Company

3. Public Limited Company

4. Limited Partnership

5. Cooperative

6. Association

At BRIDGE IN, we help our clients open subsidiaries or branches to expand throughout Europe. That’s why it’s so important to rely on a local, specialized partner to choose the legal form of your company in Portugal.

Now that you have the structure all figured out, it’s time to name your business. You have 2 ways of doing this: select a name from a list of pre-approved options (for free), or choose it on your own (though additional government fees may apply).

For that to happen, you must ask for a Certificado de Admissibilidade (Certificate of Admissibility). The costs depend on the request type:

• Normal request: A regular request takes up to 10 business days and costs €75.

• Urgent request: For a faster response, you can submit an urgent request, which is usually processed within 1 business day. This option costs €150.

Bear in mind that this fee is for the certificate itself, which validates that your chosen name is available and unique. Once you have the certificate, you can proceed with the company registration process within the following 90 days, which has its separate costs—depending on whether you use a pre-approved name or a custom one.

This is also the moment to decide who does what. You should define the company’s roles and decide on some important tasks and information, such as:

• Who are the shareholders and managing directors?

• What’s the social object of the company?

• What are the articles of association? This is your business legal foundation.

• Company office address: Where is the business located? You can either opt for a coworking space, rent a place, or even buy one. Decide on your approach and ensure you have a business address in Portugal.

• Get a certified accountant: When registering your company, you’ll have to prove that you have a certified accountant (TOC), though you can also choose one from an available list at the registration desk. Also, if you decide to create a Public Limited Company, you need to have an auditor as well—Revisor Oficial de Contas (ROC).

2. Register your company in Portugal

Now, let’s focus on the 3 most effective ways to open your company in Portugal:

1. Empresa Online (Online Company): This is by far the fastest and most convenient method. You can register your company from anywhere in the world, through the ePortugal platform or Empresa Online 2.0. Then, you’ll need to gather and submit the necessary documents, and you’re good to go.

2. Empresa na Hora (Company on the Spot): If you prefer a traditional, in-person approach, this service gives you just that—as you can visit a designated desk and kick off the process. You can register sole proprietorships by shares, quotas, and public limited companies at the Empresa na Hora desks. You’ll be able to do it in up to an hour.

3. Traditional method: This is a slower, more conventional path involving multiple steps and different entities. It’s typically reserved for more complex corporate structures.

The best part? If you partner with us, you can do it all without even setting foot in Portugal! You just need to be there in person once you open the bank account—and that’s it! 

Now, it’s time to organize all documentation.

3. Documents, licenses, and permits to open a business in Portugal

We’re not going to lie: bureaucracy in Portugal can be challenging. But it’ll all depend on the type of business you run and in which industry. In general, you’ll need documents and licenses such as: 

• Articles of Association: This legal document outlines the company's purpose, share capital, management structure, and other key details.

• Deed of Incorporation: The document that formally creates the company.

• Proof of share capital deposit: Confirmation that you’ve deposited the minimum share capital into the company's bank account.

• Declaration stating you’re starting activity in tax authorities: A document filed with the tax authorities to officially start your business activities.

• General requirements: You must submit an application through the Balcão do Empreendedor (BDE) portal. You must do so because each economic sector has specific licensing requirements.

• Industry-specific licenses: Different sectors have different requirements. For instance, tech companies require different licenses than restaurants or retail stores, which typically need a municipal license. So it's essential to check the list of licenses for your particular economic sector.

This is also the moment when you tell the Portuguese Tax Authorities what you’re about to do and get your company’s tax number (a NIPC). At the same time, you’ll need to register your company and employees at Social Security. 

Only then will you be able to pay all the monthly contributions. Plus, don’t forget to open a bank account—which is mandatory in most company types—and register who your business’s Beneficial Owner is.

In the meantime, you can reach out for expert, local help. However, if you don’t feel like it right now, don’t worry. We’ve prepared an in-depth e-book about how to set up a company in Portugal with every single detail you need—including legal and fiscal rules regarding employee hirings.

Set up a company in Portugal: All the FAQs cleared out

We can’t blame you. Though it’s a straightforward process, it has its intricacies. So it’s more than OK to have questions running through your mind.

Let’s answer them now.

Can a foreigner start a business in Portugal?

Yes, absolutely. Portugal's government actively encourages that, as seen in the 2025 State Budget. 

The general rules for foreign entrepreneurs to create a company in Portugal are similar to those for citizens, as there are no restrictions for foreigners.

However, non-resident individuals or entities must first obtain a Portuguese NIF (the tax number). Additionally, non-EU/EFTA citizens will need a Visa (depending on their context) and a Residence Permit, which can create a longer process. 

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

The costs to set up a company are lower than in other countries, which is one of the reasons why foreigners choose Portugal for expansion. The main registration costs are:

• Online registration: Around €220 if you use a pre-approved name and articles of association.

• Custom Articles: Around €360 if you opt for customized articles of association.

• Empresa na Hora service: Also around €360.

Beware that other expenses will apply, such as legal counselling (if needed), monthly accounting fees, and business licenses.

How long does it take to set up a company in Portugal?

The timeline for company incorporation is one of Portugal's key advantages. Through the Empresa na Hora service, you can have it done in less than an hour, while the Empresa Online method can take just a few days. The traditional method is much slower, unless you already have all the required documents and a booking scheduled at a desk (that way, you can actually do it in 24 hours).

Regardless of the method you choose, know that opening a bank account will always take a bit longer.

How much tax does a company pay in Portugal?

Portugal's tax system is designed to support businesses, making it one of the most attractive countries to expand into. Here’s an overview of the taxes you’ll pay when running a business in Portugal:

• Corporate Income Tax: The standard rate is 20%. There are reduced rates depending on your business type and how much you earn in the country.

• Surtaxes: There is a municipal surtax (Derrama Municipal) and a state surtax (Derrama Estadual) that applies to higher profits.

• IVA (VAT): The general VAT rate is 23%, with reduced rates for specific goods and services.