Working in Portugal - Self-employment

The level of entrepreneurship in Portugal is not yet very high.

The initiative to set up a company entails a range of risks that must be assessed and important decisions that must be taken, including defining the legal status of the company - with implications in terms of the entrepreneur’s liability and the liability of the business. Business carried out by a single person must be in the legal form of an Empresário em Nome Individual (Sole Proprietor), Estabelecimento Individual de Responsabilidade Limitada (Individual Limited Liability Establishment) or Sociedade Unipessoal por Quotas (Single Shareholder Limited Liability Company). Business carried out by more than one person may take the legal form of a Sociedade em Nome Colectivo (Partnership), Sociedade por Quotas (limited liability company), Sociedade Anónima (public limited company) or Cooperativa (Cooperative).

Although complex, this process has been developing and certain alternative methods of setting up a company have recently been introduced: Empresa Online (possibility of setting up a company only over the Internet) and Empresa na Hora (possibility of setting up a company in less than one hour by delivering documentation to one of the special offices).

These simplified forms are not available as yet for all legal types of company or for the whole country, however, so the traditional method is still the most widely used. The basic steps in this method are to:

1. apply for a Certificate of Eligibility and the respective Legal Entity Provisional Identification Card;
2. deposit the company’s share capital with a credit institution, in a bank account opened in the name of the future company;
3. obtain a public deed executed by a notary (optional, unless immovable property is transferred);
4. present the declaration of commencement of activity in a Local Tax Office;
5. register the company with the Conservatória do Registo Comercial (Register of Companies);
6. enrol as a taxpayer with the social security.

It should be noted that the steps to be taken to set up a company may be simplified to a greater or lesser extent according to the legal status chosen. The legislation regulating the setting up of companies in substantial areas of activity must also be borne in mind.

Business Formality Centres (Centros de Formalidades de Empresas) can help you when it comes to formalising companies and licensing requirements.

The Company Portal provides services, supporting information and guidelines on the various alternative procedures for starting your business. 

Text last edited March 2008

Source: European Union
© European Communities, 1995-2009
Reproduction is authorised.