How to Start a Business in Portugal as a Foreigner

Starting a business in Portugal is a great opportunity, but for non-residents, the legal steps can feel overwhelming. This guide simplifies the process with clear steps, and with INLIS Consulting, you can handle everything remotely through expert support.

Can a Foreigner Open a Business in Portugal?

Yes, foreigners of any nationality can open a company in Portugal, as long as they provide the necessary documentation. There are no restrictions based on nationality for setting up a business.

However, if you're from outside the EU/EEA, you’ll need a valid Portuguese tax number (NIF) and a legal representative in Portugal to move forward with registration.

Keep in mind that some services, such as opening a business bank account, may require proof of residence. In most cases, non-EEA nationals must hold a valid Portuguese residence permit (cartão de residente).

If you're unsure about your situation or how to begin, INLIS Consulting’s legal experts can help assess your case and guide you step by step, from securing a NIF to successfully registering your company.

Step 1: Choose the Right Business Structure

Your first step is selecting the appropriate legal entity. In Portugal, the most common structures are:

Sole Trader (Empresário em Nome Individual): Ideal for individuals operating alone who take full responsibility for the business.
Single-Member Private Limited Company (Sociedade Unipessoal por Quotas – Lda): A limited liability company owned by a single person.
Private Limited Company (Sociedade por Quotas – Lda): Requires at least two partners. This structure is well-suited for co-founders, investors, or businesses aiming for growth.

Not sure which format fits your needs? INLIS Consulting can assess your case and guide you in choosing the most suitable setup.

Step 2: Choose and Register Your Company Name

Next, you'll need to secure your company name through Portugal’s Institute of Registries and Notaries (IRN). You can choose from:

Custom Name: Submit up to six name options (€75). Approval usually takes 2–3 weeks.
Fast-Track Custom Name: Get a decision within 24 hours for €150.
Pre-Approved Name: Choose from a list of pre-approved names for a faster, cheaper process.
Personal Name: Register using your legal name or a combination of stakeholders’ names.

Once approved, you’ll receive the Certificate of Admissibility, confirming your name is ready to register.

Step 3: Draft the Articles of Association

This document defines how your company will be structured and operated. It outlines shareholder roles, capital contributions, and company governance.

Step 4: Register Your Company

With your company name and Articles of Association ready, you can proceed with official registration. This can be done:

In person at a commercial registry office
Online using a digital mobile key and all required documentation

Step 5: Meet Post-Registration Obligations

After registration, you’ll need to complete a few more essential steps before you can legally operate:

✅ Register with Social Security

Required for you and your employees.
Sole traders must register as self-employed.
Directors need a NISS (Portuguese Social Security Number).

✅ Open a Business Bank Account

A separate business account is mandatory for all companies in Portugal.

✅ Register with the Tax Authority

Your business will be assigned a Corporate Tax Number (NIPC).
Register with the Autoridade Tributária (AT) for VAT and Corporate Tax (IRC).
This is essential to begin issuing invoices.

✅ Submit RCBE & Prepare Livro de Atas

RCBE (Beneficial Ownership Registry) is a legal requirement.
Livro de Atas is the official record of company decisions.

✅ Appoint a Certified Accountant

In Portugal, every company must appoint a certified accountant within 15 days of registration.

Without one, you cannot:

Issue invoices
Comply with tax reporting obligations
Stay legally compliant

What Documents Are Required to Register a Business in Portugal?

To register your business, you’ll need:

Certificate of Admissibility (company name approval)
Identification Documents (Passport or Citizen Card + NIF)
Articles of Association (for Lda companies)

What Are the Ongoing Costs of Running a Business?

Based on the 2025 state budget, here’s what to expect:

Certified Accountant: €200–€500/month
Certified Invoicing Software: €7–€30/month
Business Account Fees: Around €10/month
Registration Fees: €200–€360 (one-time)
Legal Setup Fees: Up to €1,500 (or covered with INLIS Consulting’s service package)
Minimum Share Capital: From €1 per shareholder

Taxes and Contributions

Corporate Tax (IRC): 20% standard rate, 16% on first €50,000 for small businesses
VAT (IVA): 23%
Municipal Surtax: Up to 1.5%
State/Regional Surtaxes: Vary by location
Social Security: Minimum €181.57/month or 34.75% of declared salary

Why Choose INLIS Consulting?

INLIS Consulting is a trusted partner for entrepreneurs starting a business in Portugal, especially for foreigners who may find local bureaucracy complex.

From legal structure and documentation to registration, accounting, and compliance, we guide you every step of the way.

Everything is handled remotely, efficiently, and professionally, So you can launch your business in Portugal with confidence.