Portugal Country Profile business trade issues

Portugal

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

The setting-up of foreign companies in Portugal is increasingly encouraged. The IAPMEI (Instituto de Apoio às Pequenas e Medias Empresas e Investimento)) is an institute that assists small and medium-sized companies. This organisation grants mainly subsidies, notably in the industry sector. The IAPMEI has recently created Companies' Formalities Centres which facilitate steps to setting up new businesses.
Furthermore, the Portuguese government wants to favour investments related to tourism development. The System of Financial Incentives finances 15 to 50% of the tourist project's investment amount. Please note that these investments plans have to reach a minimum of 100 million escudos. For less important financial projects, (20 to 100 million), they are financed by the system of regional incentives. To get all these aids, the Portuguese Trade, Tourism and Investment Institute as well as the Tourism Funds must be contacted. Finally, the IFADAP, Financial Institute for Agriculture and Fishing Development grants financial aids for the development of these two sectors in Portugal.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
The sociedade por quotas de responsabilidade limitada (Lda) is a Private Limited Company	Minimum 2 partners. Only 1 for a sole proprietorship.	Minimum 5,000 €, completely subscribed with obligation to release at least 50%.	Liability is limited to the amount contributed.	0.3% of the capital for registration with the Trade Register and 0.6% for notary fees.	No
The sociedade anonima de responsabilidade limidada (SA) is a Public Limited Company.	Minimum 5 partners, who can be foreigners and non-residents.	Minimum 50,000 €, completely subscribed with obligation to release at least 30%.	Liability is limited to the amount contributed.	0.3% of the capital for registration with the Register of Companies, 0.6% for notary fees.	Yes If the company is quoted on the stock exchange.
The sociedade em nome collectivo is a general partnership.	Minimum 2 partners	No minimum capital.	Partners' liability is joint and unlimited towards third parties.	0.3% of the capital for registration with the Trade Register, 0.6% for notary fees.	Yes If the company is quoted on the stock exchange.
The sociedade em comandita is a limited partnership.	Minimum 2 partners: active partners and sleeping partners.	No minimum capital.	Liability is unlimited for active partners, and limited to the amount contributed for sleeping partners.	0.3% of the capital for registration with the Trade Register, 0.6% for notary fees.	Yes If the company is quoted on the stock exchange.

Registration and licensing procedures
First of all, it is required to apply for an authorization with the Registro Nacional de Pessoas Colectivas to be able to use the Company's business name.

Foreign exchange control
The paying-up of capital flows, not only regarding EU members but also other countries, is in application since December 16th, 1992. However, the Bank of Portugal reserves the right to impose temporary limitations in some exceptional circumstances.

Regulations concerning equity investment
The Portuguese law grants a subcsription to capital or an acquisition of a Portuguese company up to 10% or more.

Foreign Direct Investment inflows in Portugal

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	8 593	2 367	3 113	69/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update