Entity Formation in Portugal

Ready for a permanent Portuguese presence? We help you incorporate the right entity (an Lda) the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest Timing

What forming a Portuguese entity means

An Lda (sociedade por quotas) is Portugal’s private limited company, the standard vehicle for a permanent business presence. When you form one, you become the legal employer and operator in Portugal, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your Own Company

An Lda makes you the legal employer and operator in Portugal, with full control of employment terms and a local brand presence.

02

Lower Cost at Scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup Takes Weeks

Incorporation can be fast via the Empresa na Hora process, but you cannot employ anyone until you are registered with Segurança Social and the tax authority. Timing the move matters, which is why many companies bridge with an EOR first.

How forming a Portuguese entity works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm an Lda is right for you, then prepare the incorporation documents, reserve the company name, and arrange your registered Portuguese address.

02 — Capital & notarisation

Share capital (from EUR 1 per shareholder, though a realistic amount is advisable) is set, and the company is registered with the commercial registry, often same-day via Empresa na Hora.

03 — Register the company

Corporate tax and VAT accounts are set up with the tax authority (AT) and Segurança Social, so you can operate and employ compliantly.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What forming a Portuguese entity costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. Portugal is comparatively light on formation but the 14-month payroll adds up. We give you a clear figure before you commit.

Capital & formation

An Lda can be formed with share capital from EUR 1 per shareholder, though a realistic amount is advisable. This is equity you own, not a fee. Plus registration and notary costs, modest by EU standards.

Corporate tax

Standard corporate tax (IRC) is 19% on the mainland, with a reduced 15% rate on the first EUR 50,000 of taxable income for SMEs, plus municipal and state surcharges on higher profits.

VAT

Standard VAT (IVA) is 23% on the mainland, with registration on incorporation for most trading companies and periodic returns once trading.

Ongoing Obligations

Accounting, monthly payroll (income tax and social security), VAT and corporate tax filings, and annual reporting, all of which we can manage for you.

Why form your Portuguese entity through Bradford Jacobs

Why companies incorporate in Portugal through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your entity runs, not just exists.

  • Beyond registration
  • Ongoing compliance
  • One team throughout

The right specialists, in place

Legal, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

Two decades of formations

Two decades forming and running entities across Europe. A Portuguese entity must file its Central Register of Beneficial Ownership (RCBE) declaration within 30 days of incorporation and confirm it annually by 31 December, with fines up to EUR 50,000 for missing it. We build that deadline into the calendar from day one.

  • Entity formations
  • Notary & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your entity operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The entity pitfall Portugal doesn’t advertise

A growing business hits a good quarter and someone says, let us just set up a proper Portuguese company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin. Reality: even with fast incorporation, you need a registered Portuguese address, Segurança Social and tax registration, and director obligations, and you cannot legally employ anyone in the gap.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving an Lda needs a shareholder resolution, creditor notification, and a winding-up period. And once it exists, the obligations do not stop: annual accounts, the monthly DMR, corporate tax and VAT returns, and director liability. None of this is a reason not to form an entity. It is a reason to form it at the right time, with the right partners already in place.

What we handle for your Portuguese entity

Beyond incorporation, we can run the full back office for your Portuguese entity.

Compliant payroll

Compliant Portuguese payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax and social security calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: 22 days’ leave, the 13th and 14th month salary, meal allowance, sick and parental leave.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Forming a Portuguese entity: your questions answered

Straight answers on forming and running a Portuguese entity.

How long does it take to form a Portuguese entity?

Incorporation can be same-day via Empresa na Hora, but Segurança Social and tax registration take longer, and you cannot legally employ anyone until those complete, which is why timing matters and why many companies bridge with an EOR first.

An Lda can be formed with capital from EUR 1 per shareholder, though a realistic figure is advisable for credibility and banking. This is equity you own, not a fee. The other real cost is the ongoing accounting and compliance, which we can run for you.

Yes. An Lda can be fully owned by non-residents, though shareholders and directors need a Portuguese tax number (NIF). We arrange the registered address and the NIF registrations.

Form an entity when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll and the DMR, corporate tax and VAT returns, and the annual IES filing. We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Portuguese entity operates smoothly from day one without hiring locally for back office.

Ready to form your company in Portugal?

Tell us your plans for Portugal and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified June 2026 (AT, commercial registry, PwC). Figures change; we confirm the current position when we scope your formation.