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Global Expansion Resources | Portugal

Portugal Entity Set Up

Helping businesses expand into Portugal with our specialist PEO services

Portugal Entity Set Up

Weigh up the pros and cons of a Portuguese entity set up versus using a global PEO partner when expanding your business internationally

In order for your business to operate compliantly from Portugal and to establish your long-term business interests there, you will need to set up a legal entity. However, doing so is not a simple or quick process. Instead, the process of setting up a legal entity can be laden with red tape, costly and time-consuming. Consequently, growing businesses often turn to an EOR company when looking to expand into a new territory.

Here we look at who needs to set up an entity, how to set up a legal subsidiary and how a PEO can help you expand into Portugal without a legal entity.

Who needs to set up a Portuguese entity?

All foreign businesses looking to operate with a physical presence in Portugal must set up a legal entity.

The most common types of businesses operating in Portugal are Public Limited Companies (Sociedade Anónima) and the Private Limited Liability Company (Sociedade Por Auotas). These are both regulated by the Portuguese Companies Code (PCC) which highlights guidelines for registration, share capital, investors to name but a few.

What’s included:

HR software

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Global compliance

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Portugal Expansion Advice

How do I set up a subsidiary in Portugal?

As with any aspect of business expansion, the process of setting up an entity will vary from each business depending on what type of subsidiary is required as well as other determining factors. However, as a general rule, to set up an entity in Portugal you will need a:

  • Portuguese residency card
  • Tax Number (NIF)
  • Social Security Number
  • Company bank account

Before you start operating in Portugal, you will also need to submit a detailed business plan to a Portuguese Consulate in your home country.

Following this, you will also need to:

  • Decide on and then register a unique company name with the Institute of Registries and Notaries (Instituto dos Registos e do Notariado, IRN)
  • Obtain a Certificate of Admissibility from the IRN
  • Submit passports of founders or partners (depending on nationality)
  • Register with Tax and Customs Authority (Autoridade Tributária e Aduaneira) and the Social Security Institute (Instituto de Segurança Social)
  • Pay a membership fee to Empresa Na Hora

As you can see, establishing a subsidiary in Portugal is a complex, not to mention lengthy process that starts before you even land in Portugal back in your native country. By using a PEO, you can instead focus on growing your business as opposed to the lengthy, time-consuming process of setting up a legal entity.

Portuguese entity laws

In order to ensure the compliant operation of businesses in Portugal, subsidiaries are regulated by the Portuguese Companies Code (PCC). In addition to the PCC ensuring compliant operations, businesses are also regulated by the Tax and Customs Authority (Autoridade Tributária e Aduaneira) and the Social Security Institute (Instituto de Segurança Social). On top of business compliance, companies must also adhere to the rules set out by the Labour Code (Código do Trabalho) and the Portuguese Constitution (Constituição da República Portuguesa) for employment laws such as employment contracts.

Portuguese business regulations involve a continuous journey, spanning from the initial registration phase to ongoing compliance. Additionally, businesses must navigate through foreign employment laws and other regulations synonymous with operating in an unfamiliar territory.

Compliance with all of the above requires an in-depth knowledge of Portuguese entity laws which can cost you considerable time, money and resources. Meanwhile, non-compliance causes an abundance of risk for your business including fines, penalties and even the possibility of being unable to operate in Portugal.

The benefits of setting up a Portuguese entity

With a resilient economy and fantastic geographic location for trade, Portugal has seen a surge in new business expansions in recent decades.

By setting up an entity in Portugal, your company establishes its long-term intentions for growth within the country, making your business appealing for prospective clients and employees alike.

Why use a PEO partner instead of setting up a legal entity?

With such standout benefits to setting up a subsidiary in Portugal, you may wonder why you should instead partner with a PEO.

Despite its benefits, setting up a legal entity in any country is a costly and high-risk process. From initial registration to ongoing compliance, businesses need to be able to dedicate repeated resource, money and time to setting up an entity. This is on top of the day-to-day logistics of expanding your business into a new territory. Meanwhile, setting up an entity in Portugal can take considerable time, delaying your business operating in Portugal.

By outsourcing your business expansion to a PEO or EOR, you can begin operating in Portugal’s resilient economy quickly, without the arduous process of setting up an entity. This can not only save you time, resource and money but can allow your business greater flexibility within its operations and set up. Likewise, opting for a PEO means you can focus on the key aspects of business growth knowing that the legalities of tax, national insurance, onboarding employees, work permits and employment contracts are handled compliantly.

With Leap29’s expert PEO services, you can rely upon our years of experience to support your expansion into Portugal. To discuss how our specialists can assist you in your company’s Portuguese expansion, contact our expert team now on +44 (0) 20 8129 6860 or email [email protected] to get started.

Don’t take our word for it!

Leap29 played a critical role in helping us navigate a challenging situation during our acquisition by Gilde Buy Out Partners. They were instrumental in onboarding over 60 employees from Columbus onto our team, with a flexible benefits package that addressed their individual requirements. Leap29 also assisted us in managing the growth of our workforce in India. Thanks to Leap29's support, we were able to increase our headcount in India by over 50% within 12 months and establish our own operation in the country. We are grateful for their partnership and look forward to working with them again in the future."
Luciano Cunha - CEO
To Increase
Leap29 played a critical role in helping us navigate a challenging situation during our acquisition by Gilde Buy Out Partners. They were instrumental in onboarding over 60 employees from Columbus onto our team, with a flexible benefits package that addressed their individual requirements. Leap29 also assisted us in managing the growth of our workforce in India. Thanks to Leap29's support, we were able to increase our headcount in India by over 50% within 12 months and establish our own operation in the country. We are grateful for their partnership and look forward to working with them again in the future."
Luciano Cunha - CEO
To Increase
For the last few years, we have worked very closely with Simon and the team at Leap29 on a number of different projects in multiple countries across the globe. Leap29 have been a fantastic partner for us and are always willing to think with us to find the best solution. The communication with the team at Leap29 has always been excellent and Simon, in particular, is great to work with! They come highly recommended from us!
Peter Yerardi - Global VP HR
Data.ai 
For the last few years, we have worked very closely with Simon and the team at Leap29 on a number of different projects in multiple countries across the globe. Leap29 have been a fantastic partner for us and are always willing to think with us to find the best solution. The communication with the team at Leap29 has always been excellent and Simon, in particular, is great to work with! They come highly recommended from us!
Peter Yerardi - Global VP HR
Data.ai 
The assistance of Leap29 allowed our company to build a successful team in India without the hassle of establishing our own entity. They provided excellent support from the onboarding process to setting up medical insurance and ensuring all taxation issues were managed in a compliant manner. We were particularly impressed with their responsiveness to any bespoke requests and that the administration of salary payments and benefits were extremely sufficient and always on time. Their professionalism and commitment to regulatory compliance was exceptional, and we could not have done it without their support.
Steen Hybschmann
CEO | Sprint 365
The assistance of Leap29 allowed our company to build a successful team in India without the hassle of establishing our own entity. They provided excellent support from the onboarding process to setting up medical insurance and ensuring all taxation issues were managed in a compliant manner. We were particularly impressed with their responsiveness to any bespoke requests and that the administration of salary payments and benefits were extremely sufficient and always on time. Their professionalism and commitment to regulatory compliance was exceptional, and we could not have done it without their support.
Steen Hybschmann
CEO | Sprint 365

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Local expertise, global reach

Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.

180+

We make expansion in Portugal simple

Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.

EOR Services
Payroll Solutions
Global Mobility
Entity Services
PEO Solutions
Support & Advisory
HR Support
Contractor Payroll
Pricing

EOR Services

Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.

We can also take care of your global HR from multi-country payroll to onboarding and offboarding.

Payroll Solutions

Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.

Consider us an extension of your HR team, ready to answer all your questions large and small.

Global Mobility

Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.

We’ll guide your employees through the complexities of working in another country, helping them settle in fast.

Entity Services

Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.

PEO Solutions

Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.

Support & Advisory

The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.

HR Support

When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.

Contractor Payroll

Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.

Start hiring today – and onboard within hours.

Pricing

Budget confidently with transparent, competitive fees and no hidden costs.

Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.