Madeira is part of Portugal, so a company here is a Portuguese company and follows national company law. The region has its own tax rules, covered in the tax guide, but the way you set up is the same as anywhere in the country.
Choose a legal form
- Sole trader. You trade in your own name. It is the quickest route, but you are personally liable for the business.
- Private limited company (Sociedade por Quotas, “Lda”). The usual choice for small businesses. Liability is limited to the company’s capital. One or more partners can form it. The law sets no minimum total capital, but each partner’s share (quota) must be worth at least €1.
- Public limited company (Sociedade Anónima, “SA”). For larger ventures. The Companies Code sets a minimum share capital of €50,000.
The main steps
- Get a tax number (NIF) for every founder. Non-residents, especially from outside the EU, usually need a tax representative in Portugal to obtain one.
- Reserve the company name. You need an admissibility certificate for the name, or you pick a pre-approved name.
- Prepare the articles of association and agree the capital.
- Register the company. Online or in person, through the business portal or a registry office. Some routes complete the same day.
- File the beneficial owner declaration in the RCBE register. The initial declaration is due within 30 days of incorporation, and any later change must be declared within 30 days too. If nothing changed during the year, you confirm the entry annually: on the RCBE site by 31 December, or together with the annual company information (IES) by 15 July of the following year. Late filing is fined.
- Register the activity with the Tax Authority, choosing the activity code (CAE) and the VAT regime that fits your business.
- Register the company, and any employees, with Social Security.
- Open a business bank account. Banks run their own checks on foreign founders and can take several weeks.
Costs and timing
Official fees vary by route and change over time, and professional help (a lawyer or a certified accountant) adds to the cost. Ask for a written quote and check the official fee list on the business portal before you commit.
Before you start
Talk to a certified accountant (contabilista certificado) early. Every Portuguese company needs one, and the choice of legal form, VAT regime and activity code affects what you pay for years.
Official and primary sources
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