Whether you're a local entrepreneur or an international founder, setting up a company in Portugal can be a smooth process — especially when you know the steps. In this post, we’ll break it down for you.  

Step 1: Decide on the Type of Company  

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The most common types of companies in Portugal are:  

• Sole Proprietorship (Empresário em Nome Individual) – Best for freelancers or small-scale businesses.    
  
   
• Private Limited Company (Sociedade por Quotas – LDA) – Most common for startups. Requires at least 1 shareholder.    
  
   
• Public Limited Company (Sociedade Anónima – SA) – For larger businesses with more capital and shareholders.    
  
   

For most small to medium businesses,  LDA is the go-to structure. It offers limited liability and flexibility.  

Step 2: Choose a Company Name  

Check if your desired company name is available via the  Instituto dos Registos e do Notariado (IRN) website. You can either:  

• Reserve a  pre-approved name (Empresa na Hora) for fast registration.    
  
   
• Or propose a custom name, which takes longer to approve.    
  
   

Pro tip: Choose a unique and professional name that reflects your brand and can grow with your business.  

Step 3: Get a Portuguese Tax Number (NIF)  

Every shareholder and director must have a  Portuguese tax number (Número de Identificação Fiscal - NIF) . If you’re a foreigner, you’ll need a  Portuguese tax representative to help you get one.  

You can get a NIF at any  Finanças office, or through law and accounting firms that specialize in helping foreigners set up businesses.  

Step 4: Open a Bank Account  

To incorporate your company, you’ll need to:  

1. Open a  business bank account in Portugal.    
   
    
2. Deposit the  share capital (minimum €1 per shareholder for LDA).    
   
    
3. Obtain a  bank statement as proof of deposit.    
   
    

Some banks are startup-friendly — check out  Millennium BCP ,  Novo Banco , or digital options like  Revolut Business .  

Step 5: Register the Company  

Now it’s time to make it official. You can register your company:  

• Online (Empresa Online) – If all shareholders have Portuguese digital signatures.    
  
   
• In-person (Empresa na Hora) – A one-stop service available in select registry offices.    
  
   
• With a lawyer or accountant – Recommended if you want guidance through the whole process.    
  
   

You’ll need to submit:  

• Shareholder and director details    
  
   
• Company bylaws (Contrato de Sociedade)    
  
   
• Proof of share capital deposit    
  
   
• Chosen company name    
  
   

Once approved, you'll receive your  company registration certificate ,  tax identification number , and  social security number .  

Step 6: Register for Social Security & Start Operating  

After incorporation:  

• Register your employees (including yourself, if applicable) with  Segurança Social .    
  
   
• Declare the start of activity at  Finanças .    
  
   
• Set up your  accounting system with a certified accountant (TOC).    
  
   
• If applicable, register for  VAT (IVA) .    
  
   

Now you're officially ready to run your business in Portugal!  

Bonus Tips for a Smooth Start  

• Hire an accountant early — Portuguese tax law has specific rules and deadlines.    
  
   
• Consider  startup incubators or  accelerators — especially if you're in Lisbon, Porto, or Braga.    
  
   
• Look into  incentives and  grants for entrepreneurs (e.g., IAPMEI, Portugal 2030).    
  
   
• Make sure your company is compliant with  data protection (GDPR) and other regulations.    
  
   

Final Thoughts  

Starting a company in Portugal might seem like a lot at first, but with the right preparation, it can be a straightforward and rewarding process. Portugal offers a unique combination of business opportunities and lifestyle that few countries can match.  

Whether you're building a tech startup, launching a design studio, or opening a cozy café, the Portuguese market has space for creativity and growth.