Company Formation & Entity Setup in Portugal
LDA and SA incorporation, including same-day "Empresa na Hora" registration where applicable, and post-formation compliance setup.
PortugalCurrency
EUR
Legal forms
LDA · SA
Minimum share capital
LDA: €1 per quota (no statutory floor since 2011) · SA: €50,000
Registration body
Commercial Registry, via the "Empresa na Hora" same-day service where standard bylaws are used
Formation timeline
As little as 1 hour (Empresa na Hora) to a few weeks for custom structures
Corporate tax rate
19% standard for 2026 (legislated reduction to 18% in 2027, 17% in 2028) · 15% reduced rate on first €50,000 of taxable income for SMEs
How company formation works in Portugal
Portugal's corporate tax rate is mid-cycle in a scheduled multi-year reduction, falling from 20% to 19% for 2026 with further cuts legislated through 2028. Incorporation is comparatively fast: Portugal's "Empresa na Hora" same-day registration service is one of the more efficient formation routes in the EU.
Discuss your Portugal market-entry structureMatched to your business objective
LDA
The standard vehicle for an operating subsidiary of a foreign company — the default choice for most market-entry engagements in Portugal.
SA
Used for larger operations, more formal governance needs, or entities seeking to raise capital publicly.
Branch
Useful for testing the Portugal market before committing to a subsidiary, or for keeping a single legal entity across borders. Creates a taxable presence — profits are generally taxed in Portugal.
Representative office
For market research and liaison activity only — cannot sign contracts, invoice, or trade locally in most jurisdictions.
What it takes to register, and how long
Formation runs through the Commercial Registry, via the "Empresa na Hora" same-day service where standard bylaws are used, typically taking As little as 1 hour (Empresa na Hora) to a few weeks for custom structures.
- Uncapped employer social security — at 23.75% of gross salary, applying to the full remuneration regardless of level
- Mandatory annual training — at least 40 hours per employee, with compensation owed if not provided
- Work accident insurance — a separate mandatory employer-purchased policy alongside standard contributions
- Collective bargaining agreements — that can set sector-specific minimums above statutory floors
Frequently asked questions
Talk to a Portugal formation expert
The absence of a contribution ceiling means Portuguese employer costs do not flatten at higher salary levels the way they do in several neighbouring jurisdictions. Budgeting based on assumptions imported from other EU markets is a frequent and avoidable source of cost variance.