Company registration in Portugal

Start Your Business in Portugal with the Right Legal Structure:

Portugal offers a variety of legal structures for businesses, each with different characteristics, advantages, and legal requirements. Entrepreneurs and investors looking to establish a company in Portugal should carefully consider which structure best suits their business goals, liability preferences, and tax implications. Below are the most common legal forms of companies in Portugal:

1. 1. Sole Trader / Sole Proprietorship

   A business owned and operated by a single individual, where the owner has unlimited liability for the company’s debts. It is easy to set up and requires minimal bureaucracy, but personal assets may be at risk in case of financial difficulties.

2. 2. General Partnership

   A business structure formed by two or more individuals who share unlimited liability for the company's debts. Partners are jointly and severally responsible for obligations, making it important to establish a clear partnership agreement.

3. 3. Private Limited Company

   One of the most popular business structures in Portugal, a LDA is a separate legal entity where shareholders’ liability is limited to their capital contribution. It requires a minimum of one shareholder and has a relatively straightforward incorporation process.

4. 4. Public Limited Company

   A corporate structure designed for larger businesses that require significant capital investment. Shares are freely transferable, and the company can be listed on the stock exchange. It has stricter regulatory and reporting obligations but offers better access to funding.

5. 5. Single-Member Private Limited Company

   A variation of the LDA, this company structure allows a single shareholder to incorporate a limited liability company, keeping personal and business assets separate. It is ideal for entrepreneurs who wish to operate independently while limiting financial risk.

6. 6. Limited Partnership

   This structure includes both general partners, who have unlimited liability and manage the business, and limited partners, who invest in the company but have limited liability. It is a less common option but useful for specific investment scenarios.

7. 7. Cooperative

   A democratic business model where members (workers, consumers, or producers) contribute to and share in the business's success. Cooperatives must follow specific governance rules and reinvest profits to benefit members.