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Open your company in Portugal

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Starting a business in Portugal requires careful attention to detail and compliance with various legal formalities. This guide provides a simple and practical breakdown of everything you need to know to get your business off the ground, regardless of the city you choose to operate in. With Rauva's support, every step becomes easier, so you can focus on what truly matters: your business's success.

All you need to know to start a business in Portugal

1. Choosing the best type of business entity

The first step is to decide on the type of legal entity. In Portugal, the most common formats are:

• Sole Trader (Empresário em Nome Individual): Ideal for small businesses where the entrepreneur is solely responsible for the company's obligations.
• Single-Member Private Limited Company (Sociedade Unipessoal por Quotas – Lda): Allows a single person to form a company.
• Private Limited Company (Sociedade por Quotas – Lda): Requires at least two partners and is the most common format for small and medium-sized enterprises (SMEs). This model, also with limited liability, is perfect for businesses that require a more robust structure.

Choosing an Lda (either Single-Member or by Quotas) is often the best decision for entrepreneurs in Portugal, as it offers greater legal protection and flexibility in business management. Rauva recommends this model and ensures the registration process is handled by legal partners who verify if this legal structure suits your business needs.

2. Choosing and registering your company name

Once you've decided on the type of company, the next step is to choose a name. It must be unique and approved by the Institute of Registries and Notaries (IRN). You have two options:

• Custom Name: Create a unique name for your company. This process incurs an additional cost of €75 (for up to six name submissions) and typically takes 2–3 weeks for approval. For urgent cases, you can pay an extra €150 for a response within 24 hours.
• Personal Name: Register the company using the first and last names of the partners.
• Pre-approved name from the IRN List: Opt for a quicker, more cost-effective process by selecting a pre-approved name from the IRN list.

The process includes:

• Verifying the availability of the name and its subsequent approval.
• Obtaining the Certificate of Admissibility, which confirms the chosen name's approval.

With Rauva’s legal partners, we simplify this process, ensuring everything is handled swiftly and efficiently so you can focus on growing your business.

3. Drafting the Articles of Association

The Articles of Association are a vital document for any company. It defines key rules like quota distribution, shareholder responsibilities, and share capital structure. While the process can be technical, Rauva’s trusted legal partners make it seamless, ensuring full compliance with regulations so you can focus on launching your business confidently.

How to register your company in Portugal

Once you’ve finalised the key details, you’re ready to register your company. In Portugal, you have two main options:

• In-Person: Visit a commercial registry office, such as Empresa na Hora.
• Online: Use services like Empresa Online, which require a digital mobile key, organised documents, a company name, the economic activity code (CAE), objectives, and articles of association. Alternatively, you can make the process simpler by working with Rauva’s legal partners.

Why choose Rauva over Empresa na Hora?

Rauva streamlines the entire process with a fully remote solution, always handled by our legal partners. This way, we eliminate queues and the hassle of limited appointment availability.

Additionally, Rauva’s legal partners manage crucial formalities like the Beneficial Owner Register (RCBE) and Minute Books, ensuring a smooth and complete registration process. In contrast, Empresa na Hora involves extra steps and costs for legal documentation, making Rauva the more efficient and convenient choice.

What are the documents required to open a business?

• Certificate of Admissibility (for companies).
• Identification of partners (Citizen Card and NIF).
• Articles of Association (if applicable).
• After registration, a Corporate Tax Identification Number (NIPC) will be issued, which is essential for issuing invoices and other commercial operations.

What are the legal and administrative obligations when starting your business in Portugal? 

To ensure your company is fully operational, the following additional obligations must be met:

1. Registering with Social Security

Both the entrepreneur and employees must register. Sole traders need to register as self-employed workers.

2. Opening a Business Bank Account

A business account is mandatory for companies and simplifies financial management. Rauva offers a tailored business account solution with physical and virtual cards, accessible entirely online. You can also integrate multiple bank accounts for more streamlined daily operations.

3. Registering the business activity with the Tax Authority

Registering with the Tax Authority is crucial to issue invoices and fulfill tax obligations, including VAT and corporate tax (IRC).

4. Hiring an Accountant

Maintaining organised accounts is vital for the success and legality of your company. Rauva simplifies this step by providing access to a certified accountant fully integrated into its platform. This eliminates the hassle of finding one yourself and ensures compliance with the mandatory 15-day deadline after company registration.

Save time and reduce complications by managing all these requirements in one place with Rauva’s all-in-one solution. 

What are the mandatory costs for running a business in Portugal?

Running a business in (city) involves the following obligatory costs:

• Certified Accountant: By law, all companies must have one, with monthly fees ranging from €100–€300 depending on needs, size, and type of business.
• Certified Invoicing software: Companies must use certified invoicing tools, costing €7–€30 per month, depending on features.
• Business Bank Account: A separate business account is mandatory.
• Registration Fees: These are one-time payments ranging from €200–€360 depending on the method (in-person or online).
• Minimum Share Capital: Often as low as €1, but it’s advisable to consider a higher initial amount.
• Legal Services: Costs vary, reaching up to €1,000 for company incorporation, paid once.

Taxes can include:

• Corporate Tax (IRC): Standard rate of 20%, with reduced rates for SMEs and specific regions.
• Value-Added Tax (VAT): Standard rate of 23%, with reduced rates for certain goods and services.
• Municipal Surtax: Up to 1.5% of taxable income, depending on the municipality.
• State and Regional Surtaxes: Based on company profits and location.
• Social Security: Contributions are required, with a minimum of €181.57 monthly or 34.75% of a declared salary. Exemptions are possible if already contributing elsewhere.

Note: Figures are updated as per the 2025 state budget.

Why Choose Rauva?

Rauva brings together all the essentials in one seamless solution: a business account, certified invoicing tools, and access to a dedicated expert accountant—everything included in our Supercharged and Enterprise plans.

Born from entrepreneurs for entrepreneurs, Rauva was created by those who understand first-hand the challenges, doubts, and dedication it takes to build and manage a business. With the support of our legal partners and specialists, we ensure you have the best guidance — from registration to accounting — to create your company 100% online, securely and efficiently. 

No more unnecessary bureaucracy. We’re here to support you every step of the way.

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